Parkes' Principles of Macroeconomics Assignments Page, Fall 2010
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Tentative Schedule and Course Assignments:
- Chapter 33: Inflation, Disinflation, and Deflation
- Effects of Inflation
- Winners and Losers from Unexpected Inflation
- Real versus nominal interest rate - The Fisher Effect
- Costs of Inflation
- Moderate Inflation and Disinflation - Definitions and Causes
- The Great Disinflation of the 1980s
DEFLATION - Today's Issue
- Effects of Unexpected Deflation
- Effects if Expected Deflation
- Examples: Japan, Europe today maybe?
Chapter 35: Open Economy Macroeconomics
The Role of Exchange Rates
Understanding Exchange Rates
The Equilibrium Exchange Rate
Shifts in Demand
Today's Discussion of Liquidity Trap, Deflation, and the Fed's $600 Billion "QE2" increase in the Money Supply:
Impact of the Fed's $600 Billion Quantitative Easing - NY Times - 3 and 5 year rates already falling!! The policy is already working!
U.S. Treasury Department's Quarterly Refunding (of the Government - i.e. BORROWING) Statement
Refunding over $13 billion of maturing securities and new funding of over $58 billion
Day 17 PPT - Exchange Rates and International Capital Flows
Krugman's Chapter 35 PPT - Second Edition
November 11, 2010 Chapter 35: Open Economy Macroeconomics
- Finish Chapter 35: Open Economy Macroeconomics
- Inflation and Real Exchange Rates
- Purchasing Power Parity
- Big Mac Index
- Dollar and the Deficit
- Exchange Rate Policies
- Exchange Rate Intervention and Foreign Exchange Reserves
- Exchange Rate Regime Dilemma: To Fix or Not To Fix
- Examples of fixed rates: Bretton Woods, Euro, Yuan
- Macroeconomic Policies and Exchange Rates
Day 18 PPT - Apple's #1
Krugman's Chapter 35 PPT - Second Edition
Final Exam, Chapters 23 - 35 on Thursday, November 25, 2010
From 14:15 to 16:15
Accounting #1, 2111 ... Accounting #2, 2112 .... Business Administration, 2212
November 4, 2010 Chapter 33: Inflation, Disinflation, and Deflation
Monetary Neutrality
Chapter 34: Modern Macroeconomics
Classical Economics - A little look back
The Beginning of the Business Cycle
Krugman's Chapter 34 PPT
Day 14 PPT - Monetary Policy and money creation
Day 14a PPT - Money and Inflation
Krugman's Chapter 31 PPT - Second Edition
October 21, 2010 REVIEW THE EXAM!!! and Chapter 30: Money, Banking, and the Federal Reserve System
- REVIEW
- Chapter 30: Money, Banking, and the Fed
- The Meaning of Money
- What is Money?
- The Role of Money
- Types of Money
- Measuring the Money Supply
Monetary Role of Banks
Day 12 PPT - Answers to Selected Questions on the Midterm Exam
Krugman's Chapter 30 PPT, 2nd Edition
October 12, 2010 Chapter 27: Aggregate Demand and Aggregate Supply
- Chapter 27: Aggregate Demand and Aggregate Supply
- Aggregate Supply Curve
- In the Short-Run slopes upward
- Wage contracts make wages "Sticky" causing the upward slope
- Shifts in AS
- Changes in Commodity Prices
- Changes in Nominal Wages
- Changes in Productivity
- In the Long Run Aggregate Supply is vertical - Called Potential Output
- From the short-run to the long-run
- wages change affecting business costs which affect suppliers and shift short-run AS
- The Aggregate Demand Curve
- Why the Aggregate Demand Slopes Downward
- Wealth Effect
- Interest Rate Effect
- Why the Aggregate Demand Curve Shifts
- Changes in Expectations
- Changes in Wealth
- Changes in the Stock of Physical Capital
- Changes in Government Policies - Monetary and Fiscal Policy
Day 9 PPT - Aggregate Demand Shifts and CPI (US)
Krugman's Chapter 27 PPT - Krugman's Chapter 28 PPT - 2nd Edition
October 14, 2010 Finish Chapter 27: Aggregate Demand and Aggregate Supply
- From the short-run to the long-run
- wages change affecting business costs which affect suppliers and shift short-run AS
- Shifts in AS
- Changes in Commodity Prices
- Changes in Nominal Wages
- Changes in Productivity
- Why the Aggregate Demand Curve Shifts
- Changes in Expectations
- Changes in Wealth
- Changes in the Stock of Physical Capital
- Changes in Government Policies - Monetary and Fiscal Policy
- Day 10 PPT - Never offered
Mid-term Exam, Chapters 23 - 28 on Friday, October 15, 2010
From 1:30 pm to 3 pm
Accounting #1, WD 507A ... Accounting #2, WD 604A .... Business Management, WD 606A and WD 608A - email me if you have questions
See you tomorrow!
Week 5
October 1 - 7, 2010 Happy 61st Anniversary of the People's Republic of China
* NO CLASSES UNTIL TUESDAY, OCTOBER 12, 2010
Week 4
September 28, 2010 Finish Chapter 26 and Begin Chapter 28: Income and Expenditure
- Problem Set #4: TURN IN TWO POLICY GRAPHS (10 points) - Savings Tax Incentive and Government Budget Deficit
The Graphs we almost finished last class (Tuesday, Sept. 21)
- QUESTIONS about What we have covered?
- Rule of 70
- Reminder: Convergence Hypothesis (and Conditional Convergence Hypothesis)
- Real wages
- Malthus - what's a Protestant Minister to say?
- Day 4 PPT - Thomas Robert Malthus - a Classical Economist
- Chapter 28: Income and Expenditure
- Autonomous Aggregate Spending (AAS or called Aggregate Expenditures (AE)
- Consumer Spending
- Consumption Function
- Autonomous Consumption
- MPC times income
Day 7 PPT - Indicators
Krugman's Chapter 28 PPT - Krugman's Chapter 27 PPT - 2nd Edition
September 30, 2010 Finish Chapter 28: Income and Expenditure
- Problem Set #5 - in class
- Chapter 28: Income and Expenditure
- Consumer Spending
- Consumption Function
- Autonomous Consumption
- MPC times income
- Shifts in Consumption - Changes in Future Disposable Income
- Changes in Aggregate Wealth
Investment Spending
- Interest Rate and Investment Spending
- Expectations
- Inventories
The Paradox of Thrift
Bad Times in Buenos Aires
Day 8 PPT -
Krugman's Chapter 28 PPT - Krugman's Chapter 27 PPT - 2nd Edition
Week 3
September 19, 2010 Solow Growth Model and Chapter 25: Long-Run Economic Growth continued
September 21, 2010 Chapter 26: Saving and Investment
- Malthus - what's a Protestant Minister to say?
- Day 4 PPT - Thomas Robert Malthus - a Classical Economist
- Chapter 26: Saving and Investment
- Basics: Financial Intermediaries, Mutual Funds and Financial Markets - READING!!
- Important Identities: Private plus Public Saving = Investment
- The Market for Loanable Funds
- Policy 1: Saving Incentives
- Policy 2: Investment Incentives
- Policy 3: Government Budget Deficits and Surpluses
- U.S. Government Debt
Day 5 PPT - Public Policies
Krugman's Chapter 26 PPT - Krugman's Chapter 26 PPT - 2nd Edition
Day 6 Special PPT - Government Budget Constraint
Week 2
September 14, 2010 Chapter 25: Long-Run Economic Growth
September 16, 2010 Chapter 25: Long-Run Economic Growth continued
- Continue to Read Chapter 25 about Long-run economic growth
- Productivity - A key determinant of a country's standard of living
- Productivity is defined as output per worker
- Capital per worker
- Technology
- Human Capital
- Diminishing Returns
- Differences in Economic Growth Rates
- Saving and Investment
- Human Capital - Education
- FDI and Infrastructure
- R & D, property rights and political stabiility
- Solow Growth Model, as shown in class today
Week 1
September 7, 2010 Chapter 23: The Big Picture
September 9, 2010 Chapter 24: Tracking the Economy
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email: andrew at andrewparkes.com
Last Update: November 10, 2010
By Andrew L. H. Parkes, Ph. D.