econ 303 intermediate macroeconomics instructor: bernard malamud office: beh 502
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ECON 303 Intermediate Macroeconomics Instructor: Bernard Malamud Office: BEH 502 Phone (702) 895 –3294 Fax: 895 – 1354 Email: [email protected] Website: www.unlv.edu/faculty/bmalamud Office hours: MTWThF 9:30-11am; a nd by appointment. Course Objectives. - PowerPoint PPT PresentationTRANSCRIPT
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ECON 303Intermediate Macroeconomics
Instructor: Bernard Malamud–Office: BEH 502
Phone (702) 895 –3294
Fax: 895 – 1354
»Email: [email protected]
Website: www.unlv.edu/faculty/bmalamud
Office hours: MTWThF 9:30-11am; and by appointment
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Course Objectives
Refresh your command of• Macroeconomic terminology
eco-talk• Macro Facts• Schools of thought
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Course Objectives• Master MODELS
– Demand Side Models AD• Multiplier• IS – LM
– Supply Side Models AS• Wage setting – Price setting• Phillips Curve
– Expectations … in theory and practice– Solow Growth Model
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Variables of
• Output … Real GDP• Unemployment• Inflation … CPI, GDP Deflator
– Time-frames of macroanalysis• Short-run … sticky prices• Medium-run … prices adjust• Long-run … capital accumulates
Variables of Macroeconomics
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Introduction– What’s up … What’s down?
• Unemployment• Oil price … the macro impacts• $ Exchange Rate
» Inflation fears• US trade deficit
–Emerging markets: INDIA, CHINA• Housing bubble
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Where to Find the Numbers• http://research.stlouisfed.org/fred2/• www.bls.gov/data/• www.economist.com• www.bea.doc.gov• http://www.gpoaccess.gov/eop/• www.oecd.org
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Macro Pictures: Jobs
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Macro Pictures: Unemployment
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Macro Pictures: Fluctuations
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Macro Pictures: Growth
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Macro Pictures: Core Prices
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Macro Pictures: Budget Deficit
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Macro Pictures: Exchange Rate
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Macro Pictures: Payments Deficit
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Mock FOMC Presentations -- July 1, 2008• 2 – 3 person team Play a Governor of Federal Reserve or President of a District Reserve Bank
Powerpoint-assisted presentation • the state of the national economy
– allude to current economic conditions in districts – focus on the state of the national economy
• recommendation of why, whether and by how much to change the federal funds rate.
• phrasing of the statement to be issued at the end of the mock FOMC meeting.
• Governor of Federal Reserve or President of a District BankFamiliarize yourself with your official’s positions
• recent speeches • minutes of recent FOMC meetings.
• Seek guidance from your professor– appointments will be arranged, the earlier the better.
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MacroeconomicsThe course is divided in three parts: Short -run / Medium-run / Long-run
Short - run: IS / LM ADIS: Y = C + I + G
C = c0 + c1 YD = c0 + c1 (Y - T) I = I0 + b1 Y - b2 i
Y = {spending multiplier} x {autonomous spending}
LM: (M/P)d = (M/P)s
(M/P)d = L(Y,i)Ms = [1/(c + r(1-c))]H= {money multiplier} x {monetary base}
Medium - run: AD/ASIS/LM ADPS/WS AS
PS: P = (1+ μ)(W/A)WS: W= Pe Ae f(u,z)
In medium - run, Pe = P (W/P)WS = (W/P)PS = A / (1+ μ) Natural/Structural/Equilibrium Rate of Unemployment (un )“Full - employment” rate of output (YFE) The Green Shaft
SRAS and MRAS
When AD or AS shift: MR equilibrium SR equilibrium P new MR equilibrium
Long - run: GrowthSteady state: s(Y/AN) = (δ + gN + gA )(K/AN)
For simple Cobb-Douglas function: Y = Kα (AN)1-α Y/AN = {s/((δ + gN + gA )}α/(1-α)
Golden - rule saving rate = α
Productivity and equilibrium rate of unemployment: Ae = A only in long - run “Natural rate” decreases with unexpected increase in A