Economics 304

Intermediate Macroeconomics
Fall 2017
Jeffrey Parker
Course Outline and Reading List

Note: Dates shown below are a rational forecast of our progress in the course. Depending on our actual progress, exams and assignment dues dates may change.

Readings with authors listed in bold face are required. Those in regular type are optional readings that may be read by those with strong interests in the subject. Additional readings maybe added as the course progresses. Be sure to check the Web site regularly in order to keep up with any changes; don't just print this page at the beginning of the course and rely on that for the entire semester.

Course Outline (Links)

1. Introduction to macro; measurement of macro variables
2. Economic growth
3. Unemployment, money, and prices in the long run
4. Budget constraints and asset markets

October 6: First Mid-Term Exam

5. Expenditures, money and short-run equilibrium
6. Aggregate supply and the Phillips curve
7. Short-run and long-run equilibrium in closed and open economies
8. Macroeconomic policy

Final Exam


1. Introduction to Macro; Measurement of Macro Variables

August 28: Introduction. No reading assigned.

August 30 and September 1: Macroeconomic Variables

2. Economic Growth

September 6 and 8: Solow Growth Model

  • Burda and Wyplosz, Chapter 3.

September 11 and 13: Convergence and Endogenous Growth: Theory and Evidence

3. Unemployment, money, and prices in the Long Run

September 15, 18, and 20: The Aggregate Labor Market and Unemployment

September 22 and 25: Money and Prices in the Long Run

  • Burda and Wyplosz, Chapter 5.

4. Budget constraints and asset markets

September 27 and 29: Budget Constraints

  • Burda and Wyplosz, Chapter 6.
  • Barro, Robert J. 1974. Are Government Bonds Net Wealth? Journal of Political Economy 82 (6):1095-1117. (The original exposition of the Ricardian Equivalence Theorem.)

October 2 and 4: Asset Markets

  • Burda and Wyplosz, Chapter 7

October 6: First Midterm Exam

5. Expenditures, Money and Short-Run Equilibrium 

October 9, 11, and 13: Consumption and Investment Spending

October 23, 25, and 27: Money and Monetary Policy

  • Burda and Wyplosz, Chapter 9 and 10.
  • O'Brien, Yueh-Yun C. 2007. Measurement of Monetary Aggregates across Countries. Washington, D.C.: Board of Governors of the Federal Reserve System, Finance and Economics Discussion Series, No. 2007-2. (Look at this to get an idea of how money is measured in many countries.)

October 30 and November 3: Demand-Side Short-Run Equilibrium (both classes begin at 8:30)

  • Burda and Wyplosz, Chapter 11.

November 6 and 8: Open-Economy Models of Aggregate Demand

  • Burda and Wyplosz, Chapter 12.

November 10: Second Midterm Exam

6. Aggregate Supply and the Phillips Curve

November 13 and 15: Aggregate Supply in the Closed Economy

7. Short-Run and Long-Run Equilibrium in an Open Economy

November 17, 20, and 22: Aggregate Supply and Demand in the Open Economy

  • Burda and Wyplosz, Chapter 14.

November 27: Exchange Rates

  • Burda and Wyplosz, Chapter 15.

8. Macroeconomic Policy

November 29: Demand-Side Stabilization Policies

  • Burda and Wyplosz, Chapter 16.

December 1 and 4: Fiscal Policy, Deficits, and Debt

  • Burda and Wyplosz, Chapter 17.
  • Nakamura, Emi, and Jón Steinsson. 2014. Fiscal Stimulus in a Monetary Union: Evidence from US RegionsAmerican Economic Review 104 (3):753-92. Omit Section III.
  • Sargent, Thomas J. 1982. The Ends of Four Big Inflations. In Inflation: Causes and Effects, ed. by R. E. Hall, Chicago: National Bureau of Economic Research and University of Chicago Press.

December 6: Growth Policies

  • Burda and Wyplosz, Chapter 18.

If we finish early: The International Monetary System

  • Burda and Wyplosz, Chapter 19.

Final Exam: Tuesday, December 12, 1-4pm