WASHINGTON & LEE UNIVERSITY
Williams School of Commerce,
Economics, and Politics
ECONOMICS 102 - Principles of Macroeconomics
9:05-10:00–MWF
Professor Jim Casey
Rm. 214, Ext. 8102
Email: Caseyj
Office Hours:
Course Objectives: The purpose of this course is to gain an understanding and appreciation for the basic principles of macroeconomics. Macroeconomics is the study of economy-wide behavior. The framework for this course centers on a set of questions. Here are a few examples. How should we measure economy-wide economic performance? What causes fluctuations in inflation, unemployment, and economic growth? Can government policies help reduce these fluctuations and stimulate growth in the economy? How does the US economy fit into the global economy? What is the relationship between the economy and the environment? Our goal throughout the term is to use what we learn to better understand and explain current events in the world - including austerity measures, the financial crisis and reform, global climate change, and economic stimulus, to name a few. My hope is that you will become more informed citizens, better able to judge the current debates in global macroeconomic policy-making.
Required Readings
Text: Macroeconomics, 2 nd edition by Krugman and Wells http://bcs.worthpublishers.com/krugmanwellsmacro/
Newspaper: https://www.ftnewspaper.com/cgi-bin/ftusa.cgi/fess/vanity_us_student_digital
Other: GDAE
Grading:
(1) Class Participation: 10%
(2) Weekly Quizzes (16): 15%
(3) 4 Short Papers: 10%
(4) Exam 1: 20%
(5) Exam 2: 20%
(6) Final Exam: 25%
(1) You will be expected to come to class prepared to discuss the day’s topics and to ask questions if you have them. If you do not have any questions pertaining to the assigned reading, I will assume you understand the material and move on to the next topic. Additionally, if you do not ask questions in class - you will not be permitted to ask questions during office hours. Office hours are for clarifying material already discussed in class.
(2) Self-Test quizzes are due every Friday before class begins. These are closed book, no notes, and you are on your honor when taking these.
(3) Every third Friday you will be required to turn in a 2 page paper – this paper should summarize a theme covered in the Financial Times (FTs), during the previous 3 weeks, and discuss/critique the context of the chosen FTs articles using the tools we are developing in class.
(4) We will have an hour exam in class at the end of week 3 covering the material from section I.
(5) We will have an hour exam in class at the end of week 7 covering the material from section II.
(6) There will be a cumulative final exam during exam week covering all the material from the semester with an emphasis on sections 3 and 4.
Outline for the course
Section 1. Introduction to Macroeconomics
Week 0: Friday - Introductions and Review
Week 1:
Monday: chs. 1 (First Principles) and 2 (Economic Models: Trade-offs and Trade)
Wednesday: ch. 3 (Supply and Demand)
Friday: ch. 6 (Macroeconomics: The Big Picture)
assignment due - Self-Test Quizzes 1, 2, and 3
Week 2:
Monday: ch. 7 (Tracking the Macroeconomy)
Wednesday: ch.8 (Unemployment and Inflation) data
on the U.S. Economy
Friday: Macro_Measurement_Environmental_and_Social_Dimensions.pdf,
assignment due - Self-Test Quizzes 6, 7 and 8
Week 3:
Monday: ch.9 (Long-Run Economic Growth) Economic Growth
Wednesday: ch.10 (Savings, Investment Spending, and the Financial System)
Friday: macro\Macroeconomics_and_the_Environment.pdf
ASSIGNMENTS DUE - Self-Test Quizzes 9 and 10 AND Paper 1
Section 2. AS-AD, Fiscal and Monetary Policy
Week 4:
Monday: exam 1
Wednesday: ch. 11(Income and Expenditure)
Friday - ch. 12 (Aggregate Demand and Aggregate Supply)
assignment due - Self-Test Quiz 11
Week 5:
Monday: continue 12 (Aggregate Demand and Aggregate Supply)
Wednesday: ARTICLE
assignment due - Self-Test Quiz 12
Friday: reading day
Week 6:
Monday: REVIEW DAY
Wednesday: ch.13 (Fiscal Policy)
Friday: NO CLASS - BOARD OF TRUSTEES MEETING
Week 7:
Monday: ch.13 (Fiscal Policy)
Wednesday: Review and continue fiscal policy
Friday - ch. 14 (Money, Banking, and the Federal Reserve System) FRB: Federal Open Market Committee
Week 8:
Monday: ch. 14 (Money, Banking, and the Federal Reserve System)
Wednesday: ch. 15 (Monetary Policy)
Friday: assignments due - paper 2 AND Self-Test Quiz 13, 14 and 15
review for exam 2
Section 3. The International Economy
Week 9:
Monday: exam 2
Wednesday: ch.5 (International Trade)
Friday: macro\Trade_and_the_Environment.pdf
assignments due - Self-Test Quiz 5
Section 4. Special Topics in Macroeconomics
Week 10:
Monday: ch.18 (Open-Economy Macroeconomics)
Wednesday: ch. 17 (Macroeconomics: Events and Ideas)
Friday: assignments due - Paper 3 and self-test quizzes 18 and 17
Week 11:
Monday: macro\fiscalreform.pdf
Wednesday: Poverty and Inequality.ppt
Friday: TBA
Week 12:
Monday: macro\The_Economics_of_Global_Climate_Change.pdf
Wednesday: TBA
Friday: Paper 4 due and review for the final