MACROECONOMICS
International Trade Policy
Graduate School of International Studies
Spring Semester, 2006
Instructor: Tae Jeong Lee
Office Phone: (033) 760-2336
E-mail: taejlee@yonsei.ac.kr
 Text and References:
N. Gregory Mankiw, Macroeconomics, 5th ed., New York: Worth Publisher, 2003
(Supplementary Reading)
Robert Barro, Macroeconomics,
Olivier Blanchard, Macroeconomics, 3rd ed.
 For Whom
This is an elective course offered to the students majoring in the International Trade
Policy. However, all the other students enrolled in GSIS are welcome as well. This
course does not require any background in economics.
 About What
This course aims to understand how the economy as a whole (the national economy)
operates. Such an understanding should be built upon the basic concepts and agreedupon theories. Considering that the students in GSIS come with diverse backgrounds,
technical or mathematical issues will be avoided as much as possible. Instead, the
intuitive understanding and the practical application of the ideas and concepts in
macroeconomics will be emphasized throughout the course.
 Grade
The final letter grade will be determined by your performance in midterm and final
examinations and your class participation. Midterm accounts for 40% of your grade,
Final 40%, and the class participation the rest of it. Regarding the class participation,
everyone is expected to present in the class a newspaper or magazine article on the
economy. Find an interesting article, digest and analyze it using the concepts and the
theories discussed in the class. It is even better if you can point out the weak or wrong
arguments, if any, in the article. In addition, your active participation in the class such
as questions, answers, and comments will be appreciated too.
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 Plan of the Course (Tentative)
1st Week
Introduction: What is economics about ?
2nd Week
Economic Measurements(1): GDP, Price Indices
3rd Week
Economic Measurements(2): Price Indices, Unemployment Rate
4th Week
Standard of Living and Economic Growth(1): Solow’s Growth Model
5th Week
Standard of Living and Economic Growth(2): Empirical Findings and More
6th Week
Money and Inflation
7th Week
Open Economy: Trade Balance, Net Foreign Investment, Exchange Rate
8th Week
Midterm
9th Week
The workings of an open-macro economy
Ten principles of economics
10th Week Economic Fluctuations (Business Cycles)
11th Week Aggregate Demand (1): IS-LM Apparatus
12th Week Aggregate Demand (2): Various Hypotheses on Aggregate Demand
13th Week Aggregate Supply
14th Week Trade off between Inflation and Unemployment: Phillips Curve
15th Week Macroeconomic Policy Debates
16th Week Final Exam
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