Paul H. Nitze SAIS Bologna Center
Johns Hopkins University
Macroeconomics (EC.02B)
Prof. David Cheong
Fall 2008
Course Overview
Macroeconomics is concerned with the economy as a whole. This course analytically
addresses long-run issues, such as economic growth, and short-run issues, such as the
business cycle and stabilization policy. This course begins by developing an understanding of
how economists measure important macroeconomic variables. Next, we build models of the
goods and money markets for further examination of the problems of inflation, growth,
unemployment, and open economies. We then distinguish short-run from long-run models
in studying economic fluctuations and the effects of fiscal and monetary policies by carefully
analyzing the foundations and assumptions of models from different schools of thought,
whether Keynesian, classical or newer theories. Particular emphasis is given to the validity of
different models as evidenced by empirical studies and the applicability of these models to
macroeconomic policymaking.
This course comprises 13 two-hour classes (midterm included). A schedule with class dates
and readings is on the following pages of this syllabus. The course is taught with some
calculus. You are strongly encouraged to refresh your math knowledge by consulting Michael
W. Klein, Mathematical Methods for Economics, 2nd edition, Addison Wesley, 2002 (on reserve in
the library) and/or viewing the Calculus DVDs that the Registrar has distributed to you.
Prerequisites
The material in this course assumes that students have taken a Principles of Economics
course and a course in basic calculus.
Textbook
The textbook for this course is Mankiw, N. Gregory (2006), Macroeconomics, 6th. edition,
Worth Publishers.
Course Schedule
The table below contains dates for lectures and exams, deadlines for problem sets, and
readings. For each lecture, please read the textbook chapter(s) indicated.
Class Dates
Topics and Readings
Tue Oct 7
INTRODUCTION AND NATIONAL INCOME
Mankiw, Chapters 1, 2, 3
Tue Oct 14
MONEY AND INFLATION, MONEY SUPPLY AND MONEY DEMAND
Mankiw, Chapters 4, 18
Tue Oct 21
THE OPEN ECONOMY
Mankiw, Chapter 5
Problem Set 1 Distributed
Tue Oct 28
UNEMPLOYMENT
Mankiw, Chapter 6
Problem Set 1 Due
Tue Nov 4
ECONOMIC GROWTH
Mankiw, Chapters 7, 8
Tue Nov 11
MIDTERM EXAM
Tue Nov 18
ECONOMIC FLUCTUATIONS
Mankiw, Chapter 9
Tue Nov 25
THE IS-LM MODEL
Mankiw, Chapters 10, 11
Problem Set 2 Distributed
Tue Dec 2
THE MUNDELL-FLEMING MODEL
Mankiw, Chapter 12
Problem Set 2 Due
Tue Dec 9
THE SHORT-RUN INFLATION-UNEMPLOYMENT TRADE-OFF
Mankiw, Chapter 13
Problem Set 3 Distributed
Tue Dec 16
STABILIZATION POLICY
Mankiw, Chapter 14
Problem Set 3 Due
Problem Set 4 Distributed
Sat Jan 10
GOVERNMENT DEBT
Mankiw, Chapter 15
Problem Set 4 Due
Tue Jan 13
ADVANCES IN BUSINESS CYCLE THEORY
Mankiw, Chapter 19
Course Requirements and Evaluation
Problem Sets (16%)
There will be four problem sets assigned during the course. Each will make up 4% of your
final grade. These assignments are meant to solidify and advance your understanding of the
models studied in the course.
Exams (80%)
This course will have a Midterm Exam (30%) and a Final Exam (50%). The Midterm is on
Tuesday, November 11, and the final exam date will be set by Registrar. Please ensure that you
will be available for the midterm as there will be no make-up exam.
Participation (4%)
Please attend all classes and do the required readings beforehand. The topics in this course
build on each other. So, missing one class and/or skipping a reading may have detrimental
results. You are strongly encouraged to participate in lectures. Relevant questions and
comments during lectures are very welcome.
Instructors’ Contact Information
Prof. David Cheong
Rm. 211
Email: dcheong@jhubc.it
Phone: 051 2917 824
Office Hours: Tuesdays 5pm7pm and Thursdays, 2pm-4pm
or by appointment