Intermediate MacroeconomicsUndergraduate Course Level 2

Syllabus and Overview

Jilei HuangSchool of Economics,Shandong University

Feb 26, 2013

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 1 / 11

Overall IntroductionCourse Instructor

Personal Information:Name: Dr. Jilei HuangEducation: MSc in Economics, University of Edinburgh

PhD in Macroeconomics, University of Glasgow

Contact:O¢ ce: Zhixin Building B224Tel: 0531-88365367E-mail: Jilei.Huang@hotmail.co.ukPersonal web: http://www.econ.sdu.edu.cn/tree/content.php?id=52847

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 2 / 11

Overall IntroductionGeneral aims of this course

Congrats! You should have successfully passed Level 1 Macroeconomics.BUT it is only a prerequisite for this intermediate course which aims to:

develop deeper insights of the economy working as a whole;

To provide a toolkit in terms of the core theoretical models used inmodern macroeconomics;

To apply the toolkit to enhance understanding of real worldmacroeconomic experiences and important macroeconomic issues;

To enable to analyzing recent macroeconomic episodes and policydiscussions, especially on the Financial Crisis.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 3 / 11

Overall IntroductionGeneral aims of this course

Congrats! You should have successfully passed Level 1 Macroeconomics.BUT it is only a prerequisite for this intermediate course which aims to:

develop deeper insights of the economy working as a whole;To provide a toolkit in terms of the core theoretical models used inmodern macroeconomics;

To apply the toolkit to enhance understanding of real worldmacroeconomic experiences and important macroeconomic issues;

To enable to analyzing recent macroeconomic episodes and policydiscussions, especially on the Financial Crisis.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 3 / 11

Overall IntroductionGeneral aims of this course

Congrats! You should have successfully passed Level 1 Macroeconomics.BUT it is only a prerequisite for this intermediate course which aims to:

develop deeper insights of the economy working as a whole;To provide a toolkit in terms of the core theoretical models used inmodern macroeconomics;

To apply the toolkit to enhance understanding of real worldmacroeconomic experiences and important macroeconomic issues;

To enable to analyzing recent macroeconomic episodes and policydiscussions, especially on the Financial Crisis.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 3 / 11

Overall IntroductionGeneral aims of this course

Congrats! You should have successfully passed Level 1 Macroeconomics.BUT it is only a prerequisite for this intermediate course which aims to:

develop deeper insights of the economy working as a whole;To provide a toolkit in terms of the core theoretical models used inmodern macroeconomics;

To apply the toolkit to enhance understanding of real worldmacroeconomic experiences and important macroeconomic issues;

To enable to analyzing recent macroeconomic episodes and policydiscussions, especially on the Financial Crisis.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 3 / 11

Overall IntroductionGeneral learning outcomes

By the end of this course, students should have the abilities of

not only describing but also deriving a line of basic theories inmacroeconomics;

Self-learning, i.e., identify the questions interested, dig them out byyourselves, set up the decipline to learn new things;

Economic thinking, i.e., macro is close to our life; how to thinkanalytically, to express yourselves clearly, to link theories to every daylife; your thinking might change after you learn this course.

Hopefully, some of you would be genuinely interested in studyingmacroeconomics;

For some of you, a valuable investment if proceed to studyingadvanced topics in macroeconomics such as a MSc programme, indomestic universities or overseas.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 4 / 11

Overall IntroductionGeneral learning outcomes

By the end of this course, students should have the abilities of

not only describing but also deriving a line of basic theories inmacroeconomics;

Self-learning, i.e., identify the questions interested, dig them out byyourselves, set up the decipline to learn new things;

Economic thinking, i.e., macro is close to our life; how to thinkanalytically, to express yourselves clearly, to link theories to every daylife; your thinking might change after you learn this course.

Hopefully, some of you would be genuinely interested in studyingmacroeconomics;

For some of you, a valuable investment if proceed to studyingadvanced topics in macroeconomics such as a MSc programme, indomestic universities or overseas.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 4 / 11

Overall IntroductionGeneral learning outcomes

By the end of this course, students should have the abilities of

not only describing but also deriving a line of basic theories inmacroeconomics;

Self-learning, i.e., identify the questions interested, dig them out byyourselves, set up the decipline to learn new things;

Economic thinking, i.e., macro is close to our life; how to thinkanalytically, to express yourselves clearly, to link theories to every daylife; your thinking might change after you learn this course.

Hopefully, some of you would be genuinely interested in studyingmacroeconomics;

For some of you, a valuable investment if proceed to studyingadvanced topics in macroeconomics such as a MSc programme, indomestic universities or overseas.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 4 / 11

Overall IntroductionGeneral learning outcomes

By the end of this course, students should have the abilities of

not only describing but also deriving a line of basic theories inmacroeconomics;

Self-learning, i.e., identify the questions interested, dig them out byyourselves, set up the decipline to learn new things;

Economic thinking, i.e., macro is close to our life; how to thinkanalytically, to express yourselves clearly, to link theories to every daylife; your thinking might change after you learn this course.

Hopefully, some of you would be genuinely interested in studyingmacroeconomics;

For some of you, a valuable investment if proceed to studyingadvanced topics in macroeconomics such as a MSc programme, indomestic universities or overseas.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 4 / 11

Overall IntroductionGeneral learning outcomes

By the end of this course, students should have the abilities of

not only describing but also deriving a line of basic theories inmacroeconomics;

Self-learning, i.e., identify the questions interested, dig them out byyourselves, set up the decipline to learn new things;

Economic thinking, i.e., macro is close to our life; how to thinkanalytically, to express yourselves clearly, to link theories to every daylife; your thinking might change after you learn this course.

Hopefully, some of you would be genuinely interested in studyingmacroeconomics;

For some of you, a valuable investment if proceed to studyingadvanced topics in macroeconomics such as a MSc programme, indomestic universities or overseas.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 4 / 11

Overall IntroductionTextbooks and readings

Main textbook: Mankiw, N. Gregory (2012), Macroeconomics, 8thed., Worth.

7th ed. or 6th ed. are also �ne and are available in our library.

Textbook on Financial Crisis additional to Ch20: Mankiw, N. Gregoryand Ball, Laurence M. (2012), Macroeconomics and the FinancialSystem (2012), 1st ed., Chapter 15-19, Worth.

Alternatives: Blanchard, Olivier (2009) Macroeconomics (5th ed.).

Advanced reading: Romer, David (2006, 2011), AdvancedMacroeconomics, 3rd, 4th ed.,McGraw-Hill.

Supplementary readings: supplements, papers and web links will beprovided after class.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 5 / 11

Overall IntroductionAssessment:

In-class performance (Attendance, class exercises, 10%)

Problem sets (20%)

End of term exam (70%)

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 6 / 11

Overall IntroductionThis course will cover the following topics:

Part I: The economy in the long run (9 hours, Mankiw Ch.8-9)

Exogenous growth theoryEndogenous growth theory and more

Part II: Short run business cycle theory (12 hours, Mankiw Ch.11-14)

Aggregate demand (IS-LM; and open economy)Aggregate supply and the Phillips Curve

Part III: Recent advances in dynamic macroeconomic theory (12hours, Mankiw Ch15-17)

A simpli�ed dynamic New Keynesian DSGE modelDynamic consumption theoryInvestment

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 7 / 11

Overall IntroductionThis course will cover the following topics:

Part IV: Macroeconomic policy (9 hours, Mankiw Ch18-19)

Monetary policyFiscal policy

Part V: The Financial Crisis (9 hours, Mankiw Ch20 and Mankiw andBall Ch15-19)

The �nancial system (securities market, banking system)The Financial Crisis and the policy responses

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 8 / 11

Overall IntroductionThis course will cover the following topics:

Thus we have skipped many chapters (mainly Introduction andClassical theory) about long run economy in the book. Why?

First, the Level 1 book has focused on long run analysis and thusoverlaps with our intermediate book.

Second, modern macroeconomics have focused on short-run theoriesand policies

Almost no economists challenge the long run equilibrium theory now.

However, we maintained the long run growth, because:

Growth still lies in the central part of well-being and still attracts greatinterests of researchers from both developed and developing countries.Growth theory de�nes the steady state that many short run analysismust rely on.

Finally, the Financial Crisis is now the hottest topic in macro and thusdeserves a special treatment in our course.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 9 / 11

Overall Introduction

The economy has experienced both growth and�uctuations...

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 10 / 11

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Overall Introduction

Fluctuations in the Chinese economy...

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 11 / 12

Overall Introduction

Our strategy studies growth aspects �rst, andthen turns to business cycles.Let�s begin with Part I: The growth theory of the longrun economy.

Jilei Huang (Jilei Huang School of Economics, Shandong University)Undergraduate Course Level 2 Feb 26, 2013 11 / 11