KING’S UNIVERSITY COLLEGE
UNIVERSITY OF WESTERN ONTARIO
Economics 3320A Section 570
Advanced Macroeconomics I
Instructor: Professor J. D. Han, B.A., M.A., Ph.D.
Phone 433-3491, Ext. 4372
Email:
Office: Dante-Lenardon Building Room # 205
Course Website: http://instruct.uwo.ca/economics/320a-570;
Go to http://owl.uwo.ca; log in and look for ‘Economic 3320A 570 FW13’
Class Hours and Classroom Location:
Monday 1:30 am -4:30 pm BH 107
Office Hours and Location:
Monday 11:00 am- 12:00 pm at DL #205
Wednesday 11:00 -12:00 am at DL #205
By Appointment
Course Description
This is an advanced course of macroeconomic theory and policy from both a Keynesian and a modern view-point. Topics include: determination of national income and price level; microeconomic foundations of macroeconomic demand for money, and inflation.
Prerequisite(s): Economics 2221A/B, 2261A/B.
The student is responsible for ensuring he/she has successfully completed the prerequisites for this course. Lack of prerequisites cannot be used as grounds for an appeal in this course. You also are responsible for ensuring that this course is not an antirequisite to another course that you have already taken.
Unless you have either the requisites for this course or written special permission from your Dean to enroll in it, you may be removed from this course and it will be deleted from your record. This decision may not be appealed. You will receive no adjustment to your fees in the event that you are dropped from a course for failing to have the necessary prerequisites.
Academic Orientation and Objective:
The objective of this course is to develop a higher level of analytical tools and to have a critical review of various macroeconomic issues. While utilizing fairly mathematical tools, the instructor will keep this course highly relevant to the real world issues. The mathematical tools will enable the students to carry out rather a detailed analysis which otherwise would be unavailable. At the same time, the instructor will bring related critical reviews of the presented theories in the context of the evolution of economic thoughts over time.
In particular, the class will discuss and examine the economic role of government, particular in relation to controversies surrounding fiscal and monetary policies. In the process, the class will rigorously work on major macroeconomic topics, including the Policy Invariance Theorem, Time Inconsistency Issues, Inflation, and Foreign Exchange Rate Dynamics. The class will utilize static as well as dynamic mathematical tools, such as differentiation and differential equations.
Course Materials
1. Instructor’s Lecture Notes
Typed lecture notes are available on the above website. For convenience, a course pack, including the Instructor’s Lecture Notes, is available at the Central Service of King's University College, which is located beside the cafeteria of KUC. It is important that students bring the print-out to the class so that they can focus on listening to the instructor instead of writing notes.
2. Scarth, W. M., Macroeconomics: An Introduction to Advanced Methods, 2nd Edition, Harcourt Brace Jovanovich Co., Toronto;
3. Academic Papers
Related academic papers will be covered. These materials will be helpful in extending your thoughts on economic theories presented in class, and will be the basis for your assignment essay. The details will be updated on the course outline of the website as classes and lectures proceed.
4. Background References
1) Alpha C. Chiang, Fundamental Methods of Mathematical Economics, Mc Graw Hill, 1984.
2) Lucas, R. E., Jr, and Sargent, J., Rational Expectations and Econometric Practice I and II, University of Minnesota Press, 1981.
3) Attfield, C.L.F, Demery, D., and Duck, N. W., Rational Expectations in Macroeconomics, Basil and Blackwell, 1985;
Method of Evaluation:
1.Components of the Final Grade
The formula for the final grade is equal to the formula of
0.25 x Midterm Test Mark (25% of the final grade) +
0.25 x Assignment Mark (25% of the final grade)+
5 points of Attendance/Participation mark(5% of the final grade)+
0.45 x Final Exam Mark(45% of the final grade).
(The full mark of the midterm, assignment, and final exam is 100 each).
2. Attendance/Participation Mark
The attedance/participation mark will be 5% in full. The first missed class will not lead to any penalty, and the second and furthre missed classes will lead to a 1% point penalty per each class missed. An academic accommodation for missed attendance may be made, if necessary, in the same way as the missed test/examination.
3. Assignment
The assignment is a critical essay of macroeconomic theories. It should have the minimum length of 5 typed pages, double spaced and of 12 pt. font It can be written from one of many perspectives, including the mathematical or/and the ones of the history of economic thoughts. Both a hard copy of print out and a computer file should be submitted. A computer file should be also uploaded at the OWL for a possible Pragilarism check.
The assignment is due at 1:30 pm of the day of the last class. No late submission will be accepted, and will be assigned the mark of zero.
4. Important Dates for Test and Exam
Cancelled Class; September 30
Make-Up Class: September 27, Friday (Time of the day TBA online),,
Midterm Test: In class; October 7, Monday (120 minutes)*
Assignment: Both Hard Copy and Computer File are Due in the Last Class
Final Exam During final exam period (3 hours), date and time TBA by the Registrar's Office
Office Hours and Extra Helps:
The students are encouraged to come to the office hours for help with course materials and assignments. They are encouraged to have ample discussion of their essay with the instructor. The course website will have the note and announcements posted. Please, check it as frequently as you can.
Course Policies:
1. Tests and Examinations
Students are expected to complete all required evaluation components in order to receive a grade in this course. Students with course conflicts and approved inter-university athletic conflicts, or students unable to write an exam or test based on medical or compassionate grounds, may apply to be excused.
There is no make-up midterm test. If a student misses a test, and has a valid document for it, s/he must inform the instructor immeidately and see the counselor at the Academic Dean’s office with a valid medical document at the same time. The access to the required STUDENT MEDICAL CERTIFICATE (SMC) is located at : http://www.kings.uwo.ca/pt5/assets/File/SMC_Revised_March_2011.pdf . No other medical note.forms will be accepted. The instructor will be advised on the validity; if an academic concession is granted, the midterm test weight will be reassigned to the final exam.
Students who are excused from writing the final exam will receive an “Incomplete” (INC) in the course, and will be required to write the final exam at the next available opportunity (likely in the following term or year when the course is offered again).
Requests to be excused for medical or compassionate grounds must always be accompanied by appropriate documentation – either with the request or as soon as possible after the fact.
The students must refer to the Policy on Accommodation for Medical Illness (http://www.uwo.ca/univsec/handbook/appeals/accommodation_medical.pdf).
Students, who have any problems that may hinder their academic performance, are encouraged to discuss these issues with the instructor or the appropriate College official before exams.
2. The Bottom Line of Attendance
The UWO Academic Calendar states: “Any student who, in the opinion of the instructor, is absent too frequently* from class or laboratory periods in any course, will be reported to the dean (after due warning has been given). On the recommendation of the department concerned, and with the permission of the dean, the student will be debarred from taking the regular examination in the course”. * More than 25% of classes missed are considered too frequent.
Attendance will be checked in every class. First, a warming will be given to the student who is approaching the above threshold of 25%. If the student continues to miss classes and thus pass the threshold, the debarring process will be automatically started.
Course Outline:
1. Comparative Statics of Macroeconomic Model
Review of IS-LM Model
Partial and Total Differential
Cramer’s Rule Applied
Existence of Equilibrium; Stability; Multipliers; Superior Monetary Policies
2. Rational Expectations Model and Policy Invariance Theorem
Rational Expectations Operator;
Policy Invariance Theorem;
Deterministic Monetary Rules;
Random Monetary Policies
3. Disinflation and Time Inconsistency Issues
Cost of Inflation;
Cold-Turkey versus Gradualism;
Milton Friedman’s Optimal Rate of Inflation;
Seignoirage; Time Inconsistency;
Dynamic Games;
Rules versus Discretion;
Independence of the Central Bank
4. Intrinsic Dynamics
Uniqueness of Equilibrium;
Differential Equation;
Phase Diagram
Open-Macroeconomics Model
Foreign Exchange Rate Dynamics- Dornbusch’s model of overshooting
5. Microfoundation of Macroeconomics
Policy on Accommodation for Medical Illness: (http://www.uwo.ca/univsec/handbook/appeals/accommodation_medical.pdf)
Student Medical Certificate (SMC): http://www.uwo.ca/univsec/handbook/appeals/medicalform.pdf
Support Services
Students who are in emotional/mental health distress should refer to Mental Health@Western: http://www.uwo.ca/uwocom/mentalhealth/ for a complete list of options about how to obtain help.
University Students Council provides many valuable support services for students (including the health insurance plan) http://westernusc.ca/services/.
Information about Counselling and Student Development Services at King’s is available at http://www.kings.uwo.ca/current-students/academic-support/;
for emotional/mental health assistance see specifically: http://www.kings.uwo.ca/current-students/campus-services/student-support-services/personal-counselling/
The web site for Academic Services at King’s University College is:
http://www.kings.uwo.ca/current-students/courses-enrolment/program-and-course-planning/academic-advising/
Unless otherwise noted by your Professor, the following policies are in effect:
Statement on Use of Electronic Devices
Use of Electronic Devices:
You are not allowed to have a cell phone, or any other electronic device, with you during tests or examinations.
Use of Laptops in the Classroom
“King’s University College at The University of Western Ontario acknowledges the integration of new technologies and learning methods into the curriculum. The use of laptop computers can contribute to student engagement and effective learning. At the same time, King’s recognizes that instructors and students share jointly the responsibility to establish and maintain a respectful classroom environment conducive to learning.
The use of laptops by students during lectures, seminars, labs, etc., shall be for matters related to the course at hand only. Students found to be using laptops for purposes not directly related to the class may be subject to sanctions under the Student Code of Conduct. See http://www.kings.uwo.ca/kings/assets/File/currentStudents/ studentLife/conduct/code_of_conduct_2003.pdf . Inappropriate use of laptops during lectures, seminars, labs, etc., creates a significant disruption. As a consequence, instructors may choose to limit the use of electronic devices in these settings. In addition, in order to provide a safe classroom environment, students are strongly advised to operate laptops with batteries rather than power cords.”
Statement on Academic Offences
King’s is committed to Academic Integrity.
“Scholastic offences are taken seriously and students are directed to read the appropriate policy, specifically, the definition of what constitutes a Scholastic Offence, at the following Web site:
http://www.uwo.ca/univsec/handbook/appeals/scholasticdiscipline_undergrad.pdf.
All required papers may be subject to submission for textual similarity review to the commercial plagiarism detection software under license to the University for the detection of plagiarism. All papers submitted for such checking will be included as source documents in the reference database for the purpose of detecting plagiarism of papers subsequently submitted to the system. Use of the service is subject to the licensing agreement, currently between The University of Western Ontario and Turnitin.com http://www.turnitin.com.
Computer-marked multiple-choice tests and/or exams may be subject to submission for similarity review by software that will check for unusual coincidences in answer patterns that may indicate cheating.
Mailbox re Submission of Late Essays/Assignments ONLY
4