Prof. M. Bianconi - Autumn 2001
Course Progress
EC 12-2 - Intermediate Macroeconomic Theory
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Week 1 - Sep 3-7
T - Introduction
W - Fixed versus Flexible Prices in Macroeconomics and the Keynesian
Cross model. Barro(1997), Ch.2: Robinson Crusoe Economy - Production
function and supply side.
F - Barro(1997), Ch. 2; Choice of consumption and hours of work subject
to technology and resources constraints.
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Week 2 - Sep 10-14
T - Barro(1997), Ch. 2: The Incentive problem; Technology shocks and shape
of indifference curves. Handed out Quiz I.
W -Barro (1997), Ch. 2: Technology shocks and the shape of
indifference curves; Thaler, Ch 6: Loss aversion; Frank and Cook
(1995), deviations from marginal product valuation.
F - started Barro (1997), Ch. 3: Credit markets. Handed out Quiz II.
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Week 3 - Sep 17-21
T - Barro (1997), Ch. 3: Credit Markets.
W - Barro (1997), Ch. 3: Credit Markets.
F - Barro (1997), Ch. 3: Credit Markets - Wealth and Intertemporal
Substitution Effects.
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Week 4 - Sep 24-28
T - Barro (1997), Ch. 3: Credit Markets, Life Cycle and Permanent
Income.
W - Barro (1997) Ch.3: Credit Markets, Imperfect Capital Markets; Thaler
(1992), Chs. 8 and 9: Debt Aversion, Loss Aversion. Handed out Quiz
III.
F - Problem Set Quiz.
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Week 5 - Oct 1-5
T - Barro (1997), Ch. 4: Money Demand Problem: Monetary Doctrines.
W - Barro (1997), Ch. 4: Money Demand Problem: Optimal Cash Management
Problem.
F - Quiz review for Mid-Term.
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Week 6 - Oct 8-12
T - No class, Monday Schedule
W - Mid-Term I - Material up to class of Tuesday, Oct 2; Format: Answer
all nine (9) questions.
F - Barro (1997), Ch. 4: Money Demand Problem - Comparative Statics,
Velocity, and Evidence.
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Week 7 - Oct 15-19
T - Barro (1997), Ch. 5: General Equilibrium I - Walras Law.
W - Barro (1997), Ch. 5: General Equilibrium I - Temporary Supply Shocks.
F - Barro (1997), Ch. 5: General Equilibrium I - Permanent Supply
Shocks, Monetary Shocks and Monetary Neutrality; discussion of MT I.
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Week 8 - Oct 22-26
T - discussion of the Labor Market and Barro (1997), Ch. 7:
Inflation, Nominal versus Real Interest Rates and the Fisher
Equation.
W - Barro (1997), Ch. 8: General Equilibium II.
F - discussion of Problem Sets and material from chapters 7,8.
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Week 9 - Oct 29-Nov 2
T - Barro (1997), Ch. 8: General Equilibium II - Equilibrium with
Inflation and Classical Theory of
the Price Level.
W - Barro (1997), Ch. 8: General Equilibium II - Monetary Policy,
Anticipated Inflation Effect and
the Non-Super Neutrality of Money.
F - Barro (1997), Ch. 8: General Equilibium II - The Liquidity Effect and
the possibility of a Liquidity Trap.
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Week 10 - Nov 5-9
T - Barro (1997), Ch. 8: General Equilibium II - The Inflation Tax.
W - started Barro (1997), Ch. 9: Real Investment.
F - review for Mid-Term II - Material for MTII: Chs. 4, 5, 7, and 8.
Format: One hour, answer all nine (9)
questions.
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Week 11 - Nov 12-16
T - Mid Term II
W -Barro (1997), Ch. 9: Real Investment - The Neoclassical Theory.
F - Barro (1997), Ch. 9: Real Investment - The Neoclassical Theory, The
Present Value Approach, and Tobin's q.
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Week 12 - Nov 19-23
T - Barro (1997), Ch. 11: Economic Growth - Introduction to Growth
Accounting and Robert Solow's growth model.
W - No class, University Holiday
F - No Class, University Holiday
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Week 13 - Nov 26-30
T - end Barro (1997), Ch. 11: Economic Growth - Robert Solow's growth model.
Introduction to Fiscal Policy.
W - Barro (1997), Ch. 12 - Fiscal Policy - Government Spending
financed
by Lump Sum Taxes, Permanent case.
F - Barro (1997), Ch. 12 - Fiscal Policy - Government Spending
financed
by Lump Sum Taxes, Temporary case.
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Week 14 - Dec 3-7
T - Barro (1997), Ch. 13 - Fiscal Policy - Distortionary Taxes.
W - Barro (1997), Ch. 12 - Fiscal Policy - Government Borrowing and
Ricardian Equivalence.
F - Last class - Course Overview; Reading Report Due by 5:00PM.
Format of Final Exam: 10 Questions answer all; One Hour and Forty
Five Minutes(1:45min).
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Week 15 - Dec 10-15 Classes End
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W - Dec 19: One Hour and Forty Five Minutes Final Exam - Answer all
10(ten) Questions -
7:00-9:00PM.
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Bill Barnett's Recommendations
Miscellaneous:
Paul Krugman -
MIT
- Unofficial
US
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Social Sciences Data on the
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Mark Wohar's Recommendations and
Links
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EC 12 - Intermediate Macroeconomic Theory
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