Principles of Macroeconomics
Course Description
An introductory course covering issues relating to the economy as a whole.
Topics discussed include, but are not limited to, the study of national income and the Gross Domestic Product (GDP), national income determination, investment, consumption and consumption theories; classical economic theories, Keynesianism, monetarism, rational expectations, supply-side economics; the business cycle, inflation, unemployment; money and the money supply, the banking system, monetary and fiscal policy, budget deficits and the national debt.
Course Objectives
The course will enable students to gain an understanding of how the market economy works and how economic theory can be used to understand issues of public policy and public finance.
Course Materials
Required:
The course will follow the textbook:
Cowen & Tabarrok, 2015, Modern Principles of Economics, 3rd edition, Worth Publishers.
Available from bookdepository and amazon
The required readings from this textbook are listed below.
Further recommendations:
Additionally, material from the following text may be used:
Goodwin et. al., 2014, Principles of Economics in Context, Routledge.
Available from amazon and bookdepository.
Relevant chapters are listed below as [PEC:Chapter number].
The Cartoon Introduction to Economics: Volume Two: Macroeconomics by Grady Klein / Yoram Bauman, Macmillan
To prepare for the exams, Schaum’s Outlines of Principles of Economics offers a large number of fully solved problems.
Available from amazon or bookdepository
Course Requirements:
Students must read the corresponding chapters of the textbook before each session. Reading the economic and political press will also be helpful.
I recommend that you try to solve the end of chapter problems in preparation and review of each class session.
Class meets each day at 09:15. Please bring a hard copy of the problem sets we want to discuss (see below) to each class.
Laptops are banned from use during class sessions. See http://economicscience.net/content/laptop-use/ for the reasons.
Instructor Information:
Prof. Dr. Dennis A. V. Dittrich
dennis.dittrich@touroberlin.de
http://economicscience.net
You can always reach me via email. Appointments for meetings can be arranged through my webpage at: http://economicscience.net/content/book-appointment.
Updated information, links to the literature, additional materials, etc. can be found on my webpage as well.
Grading Guidelines:
| Grading Component | Weight |
|---|---|
| Problem Sets | 20% |
| Quizzes | 20% |
| Final Examination | 60% |
Workload
A typical 3 credit course requires 150 hours of your time. The table below identifies how I expect those 150 hours will be allocated. While you do not receive direct marks for reading, reading will affect your class participation (your ability to participate in class discussions and activities) and your final exam mark.
| Activity | Time |
|---|---|
| Class Time | 45 hours |
| Reading | 45 hours |
| Preparation and Review | 60 hours |
Topics and Reading Assignments
Session 1: 14.08.
- Economics: The Big Ideas (Ch. 1, PEC: 1)
- Political Economy & Public Choice (Ch. 20)
Session 2: 15.08.
- Economics, Ethics, & Public Policy (Ch. 21)
In “Public Finance” we will discuss the role of Government in the Economy, Taxes, Public Choice, and Public Policy in more detail. - GDP (Ch. 26, PEC: 0, 1, 19, 20, 21)
The New Yorker, SEPTEMBER 9, 2015, The End of GDP?
The Economist, April 30, 2016, The trouble with GDP.
The Economist, April 30, 2016, How to measure prosperity.
Session 3: 16.08.
- Growth (Ch. 27 & 28, PEC: 20, 32)
The Economist, August 5, 2017, Human capital: The people’s champion.
In “Comparative Economic Systems” we will discuss economic performance and institutions in more detail.
Session 4: 17.08.
- Saving, Investment, & the Financial System (Ch. 29, PEC: 30, 26)
In “Principles of Finance” we will discuss these topics in more detail. - Unemployment (Ch. 30, PEC: 23)
Session 5: 18.08.
- Money & Inflation (Ch. 31 & 34, PEC: 27)
NPR, 2011, The island of stone money: Yap
Friedman, M., 1991. The island of stone money. Hoover Institution, Stanford University.
Voxeu.org, 2017. Competition between government money and cryptocurrencies.
NPR.org., 2010. How Fake Money Saved Brazil.
Session 6: 21.08.
- Business Fluctuations (Ch. 32 & 33, PEC: 24)
Session 7: 22.08.
- The Central Bank & Monetary Policy (Ch. 34 & 35, PEC: 27, 28)
The Economist, 20th February 2016, Unfamiliar ways forward
The Economist, 20th February 2016, Out of ammo?
Session 8: 23.08.
- Taxes & Government Spending (Ch. 36, PEC: 25, 31)
In “Public Finance” we will discuss Taxes in more detail.
Session 9: 24.08.
- Fiscal Policy (Ch. 37, PEC: 25, 28)
The Economist, 20th February 2016, Unfamiliar ways forward
The Economist, 20th February 2016, Out of ammo?
Session 10: 28.08.
Final
Topics and reading assignments are subject to changes.
Problem sets
We will discuss problems – mostly taken from our textbook – in class. You will find the problems for download in a dropbox folder. [Click Here!]
If you do not have a Dropbox account yet: Get one for free!