"The purpose of economics is not to acquire a set of readymade answers to economic questions,
but to learn how to avoid being deceived by economists."
Joan Robinson, 1955
Macroeconomic Theory
ECO s320L (82950) summer 2010
MTWThF 8:30 – 10, PAR 1
Instructor: Brian Trinque
trinque@austin.utexas.edu
BRB 3.102B, (475-8557)
Office hours: MTW 10:30 to noon, or by appointment
Description
This course builds on the material presented in Introduction to Macroeconomics
(ECO 304L). Major theoretical concepts, analysis tools, and empirical regularities
are explored in the context of seven case studies.
By the end of the course, students should be able to address three sets of
questions. (1) What determines the performance of an economy (e.g., its growth
rate, its unemployment rate)? (2) What are the likely consequences of various
government policies (regarding the supply of money, budget deficits, etc.)? (3)
What are macroeconomists saying about current issues (e.g., globalization,
weakening of the U.S. dollar)?
The prerequisite for this course is ECO 420K. If your transcript does not show
credit for ECO 420K, with a grade of “C” or better
you will be dropped from this course;
you are advised to adjust your schedule now
(since no economics courses may be added after the fourth class
meeting).
Materials
The required text is Macroeconomics, 5th Edition (Updated), by Olivier
Blanchard ( 2011). Additional course materials will be placed on electronic
reserves http://reserves.lib.utexas.edu/eres/coursepage.aspx?cid=5186
Details will be announced in class.
ECO 320L (82950), summer 2010
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Expectations
Lectures consist primarily of extensions and applications of topics in the
Blanchard text. I will alert the class to common errors and easily overlooked
subtleties. Above all, the best use of our class time is for me to answer your
questions.
To learn macroeconomics, you must take an active role. Your tasks are to
read the assigned chapters and identify concepts you find unclear, to test your
comprehension by thinking carefully about the exercises at the end of each
chapter, and to give me opportunities to help with the uncertainties you encounter.
To encourage active learning, there will be several in-class quizzes, which will
serve as diagnostic “pre-tests,” revealing to what extent you are prepared to
perform well on exams, and where you might need additional efforts and/or help.
Please let me know immediately if you have any problem that is preventing
you from performing satisfactorily in this class. Any student with a documented
disability who requires academic accommodations should contact Services for
Students with Disabilities (SSD) at (512) 471-6259 (voice) or 1-866-329-3986
(video phone).
Exams and Grading
There will be three mid-term exams and a comprehensive final exam (dates
are provided on the next page). Final grades will be based on the three highest
exam scores; if you are satisfied with your scores on the mid-term exams, you
need not take the final exam.
Weights used to calculate final grades
quizzes
10%
mid-term exams
30% X 3, or 25% X 2
final exam (optional)
40%
The “quizzes” score is based solely on your taking the quizzes. The score is
not affected by whether or not you get the right answers. Everyone begins the
course with an “A” for this 10%; the quizzes grade will decline only if you miss
any of the quizzes.
ECO 320L (82950), summer 2010
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The final exam score is included in the grade computation only if doing so
raises your grade. If so, the final exam is weighted 40%, and the two highest midterm scores are weighted 25% each.
Exams are based much more on class lectures than on the textbook. Exams
are graded against a high standard: the best possible answer, given the course
materials. The “best possible answer” demonstrates that the student knows the
material well enough to be able to teach it to others. To get an “A,” it is not
necessary that all of your answers be the “best possible.” Grades on each exam are
curved up to the class average.
Quizzes and exams will be returned in class. Thereafter, such documents
will be in my office for you to collect at your convenience (and are stored for
approximately four years). Retrieving the graded documents is the only way to
know your grade. I do not post grades nor discuss grades via phone or email.
Final course grades become available on line when and as the Registrar posts
them.
Conversion of score to letter grade will occur as follows:
95 to 100
90 to 94
87 to 89
83 to 86
80 to 82
75 to 79
65 to 74
60 to 64
50 to 59
0 to 49
A
AB+
B
BC+
C
CD
F
Lecture Topics, Reading Assignments & Exam Dates
THE VERY SHORT RUN
I.
Equilibrium, disintermediation, & coordination
Chapters 3, 4, 5, 18, 19, 22 & 28
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risk premium, monetary policy, fiscal policy
***EXAM ONE, Wednesday, 21 July***
THE SHORT RUN
II.
How austerity works
Chapters 14, 15, 16, 17
wealth & output
III.
How austerity fails
Chapters 20, 21 & 26
fiscal sustainability
***EXAM TWO, Friday, 30 July***
THE MEDIUM RUN
IV.
Global finance vs. Mitterrand
Chapters 6, 8 & 25
NAIRU
THE LONG RUN
V.
The "Smart Economy"
Chapters 10, 11, 12, 13
lifelong learning
***EXAM THREE, Wednesday, 11 August***
ECO 320L (82950), summer 2010
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***FINAL EXAM (comprehensive), Saturday, 14 August, 9 a.m. to noon***