U.C. Berkeley: Spring 2008: Intermediate Macroeconomics: Spring 2008
J. Bradford DeLong firstname.lastname@example.org office hours W 10-12
Marc Gersen email@example.com office hours tba Lecture MW(F) 247 Cory 9-10
Section 1 MW 237 Cory 8-9
Section 2 WF 61 Evans 11-12
Schedule and Readings
W Jan 23: INTRODUCTION: The Problems of Macroeconomics
- J. Bradford DeLong and Martha Olney (2005), Macroeconomics (New York: McGraw-Hill/Irwin), chs. 1-3.
- Notes: Introduction: Why Macroeconomics?
- Web assignment 1 out (due Jan 25) Introductions
Theory (with Examples and Illustrations)
The Long Run: Economic Growth
F Jan 25: The Solow Model: Capital and Equilibrium
- Macroeconomics, 4
- Introduction to the Theory of Economic Growth
- Problem Set 1 out (due Feb 1)
M Jan 28: The Solow Model: Dynamics and Feedback
- How Fast Does the Economy Head Toward Its Balanced-Growth Path
- Two Additional Notes
- Web Assignment 2 out (due Feb 4) Solow Growth Models Scenario Spreadsheet
W Jan 30: How Much of Today's World Can We Explain with the Solow growth model?
- Macroeconomics, 5
F Feb 1: What happened this week in the macroeconomy?
- Problem Set 2 out (due Fed 8)
M Feb 4: From Malthus to Modernity: Understanding the Industrial Revolution
- Macroeconomics, review 5.1
- Notes: Industrial Revolutions
- Explorations in the Theory of Economic Growth](http://delong.typepad.com/print/20060905_lecture_notes.pdf)
- Web Assignment 3 out (due Feb 11) Technology and Endogenous Growth
W Feb 6: Technology
- Notes: Technology
- Optimal Innovation
F Feb 8: What happened this week in the macroeconomy?
M Feb 11: Institutions
- Notes: Institutions
W Feb 13: Resources
- Notes: Resources
F Feb 15: PROFESSORIAL REALITY CHECK EXAM
- Problem Set 3 out (due Feb 22)
The Medium Run: Economic Fluctuations with Flexible Prices
W Feb 20: Components of Aggregate Demand
- Macroeconomics, 6
- Web Assignment 4 out (due Feb 27) Full-Employment Fiscal Policy
F Feb 22: Full-Employment Equilibrium
- Macroeconomics, 7
- Using the Flexible Price Model
- Problem Set 4 out (due Feb 29)
M Feb 25: The International Side--Plus Government Budgets and Investment Booms
- Macroeconomics, review 6.3, review 7.5
- Web Assignment 5 out (due Mar 3) Expectations and Exchange Rate Dynamics
W Feb 27: The Monetary Side: The Quantity Theory of Money, Inflation, and Expectations
- Macroeconomics, 8
F Feb 29: What happened this week in the macroeconomy?
- Problem Set 5 out (due Mar 7)
The Short Run: Economic Fluctuations with Sticky Prices
M Mar 3: Sticky Prices and Aggregate Demand
- Macroeconomics, 9
- Web Assignment 6 out (due Mar 10) Stimulus Packages
W Mar 5: The IS Curve and Employment
- Reading: Macroeconomics, 10 including 10a
F Mar 7: What happened this week in the macroeconomy?
- Problem Set 6 out (due Mar 14) Investment and Aggregate Demand
M Mar 10: The Phillips Curve and Inflation
- Macroeconomics, 12, including 12a (optional: 11)
- Web Assignment 7 out (due Mar 17) Managing Inflation Expectations
W Mar 12: Tying Up the Short-Run and the Medium Run
F Mar 14: What happened this week in the macroeconomy?
M Mar 17: Loose Ends
- Notes: Core Theory Loose Ends
W Mar 19: CORE THEORY EXAM
- Problem Set 7 out (due Apr 7) Stabilization Policy and Central Banking
Applications (with Additional Theory)
Domestic Monetary and Fiscal Policies
M Mar 31: Stabilization Policy since WWII
Macroeconomics, review 10.3, review 12.4, 13, 14.1, 16.1-16.4 W Apr 2: Should Conservatives Be Central Bankers?
Notes: Central Bankers: Stabilizers, Credible Inflation-Fighters, and Lenders of Last Resort
- Central Bank Consistency and Credibility: The Analytics
- Macroeconomics, review 13.6, review 13.7
F Apr 4: What happened this week in the macroeconomy?
M Apr 7: Looking Back at the Great Depression: What Went So Wrong?
- Macroeconomics, 16.3, 16.5
- Notes on the Great Depression
- Notes on Liquidity Traps
- Problem Set 8 out (due Apr 14) Credit Channels
W Apr 9: Is There a Political Business Cycle?
- Macroeconomics, review 13.6
F Apr 11: What happened this week in the macroeconomy?
M Apr 14: U.S. Long-Run Budget Balance
- Notes: Fiscal Policy in the Long Run
- The "Golden Rule" and National Savings
- Macroeconomics, 14.2, 14.3
- Problem Set 9 out (due Apr 21) The Aging of America
W Apr 16: "Fixing" Social Security
- Notes on Social Security
F Apr 18: What happened this week in the macroeconomy?
Growth and Distribution
M Apr 21: Productivity Speed-Ups and Slow-Downs
- Macroeconomics, review 5.2
- Notes: Understanding the Productivity Slowdown
- Notes: Understanding the Productivity Speed-up
- Growth Accounting
- Modeling the High-Tech Computer Revolution of the 1990s
- Problem Set 10 out (due Apr 28) Productivity Growth
W Apr 23: U.S. Income Distribution
- Notes: American Income Distribution
F Apr 25: What happened this week in the macroeconomy?
M Apr 28: European Youth and Structural Unemployment
- Macroeconomics, 16.5
- Notes: The Western European Macroeconomy
- Web Assignment 8 out (due May 5) Behavioral Finance
Domestic and International Finance
W Apr 30: "Animal Spirits": Understanding the Stock and Real Estate Markets
- Notes: Animal Spirits
- On Robert Barro's (2005) "Rare Events and the Equity Premium" and T.A. Rietz's (1988) "The Equity Risk Premium: A Solution" http://delong.typepad.com/print/20070213_note_barro_rietz.pdf
- The Gordon Equation, Earnings Yields, and Stock Returns http://delong.typepad.com/sdj/2007/05/a_teaching_note.html
- Equity Premium Handout http://www.j-bradford-delong.net/Teaching_Folder/Econ_202b/Handouts/equity.pdf
- "Bubbles" Handout http://www.j-bradford-delong.net/teaching_folder/Econ_202b/Handouts/bubbles.pdf
F May 2: What happened this week in the macroeconomy?
M May 5: Global Imbalances
- Notes: Global Imbalances
- The International Financial Crises of the 1990s
- Simple Analytics for a Hard Dollar Landing
- Web Assignment 9 out (due May 12) Managing Global Imbalances
W May 7: APPLICATIONS EXAM
Summary and Review
F May 9: What happened this week in the macroeconomy?
- Web Assignment 10 out (due May 16) Feedback and Recommendations
M May 12: FINAL REVIEW
F May 16: FINAL EXAM 8-11