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ECON 20020Macroeconomics 1

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Lecturer

• Vincent Hogan• D205 JHN• Office Hours: Tuesday 11–12 and by

appointment

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Overview

• This course will build on ECON 10020• Many similar themes• But more rigorous treatment

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Learning Objectives

1. To understand the workings of the modern macroeconomy in the short run

2. We will place emphasis on how a government can deal with economic shocks especially those that effect a small open economy

3. We will also emphasize the role of expectations, flexibility & the time frame in macroeconomics

4. I will provided empirical evidence to back up (or refute) the conclusions of the models

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Reading Material• Notes will be posted on Blog (see below)• Main Text: Mankiw, Macroeconomics, Macmillan

International 8th edition• Any Macro book will do.

– Robert J Gordon, Macroeconomics, Pearson International 11th edn;

– Blanchard etc• There should be lots of second hand

books around

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Pop EconomicsSome “pop economics” books are also very useful

1. When Markets Collide: Investment Strategies for the Age of Global Economic Change by Mohamed El-Erian 

2. The Return of Depression Economics and the Crisis of 2008 by Paul Krugman

3. Irrational Exuberance - by Robert J. Shiller

4. Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay

5. Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism by George A. Akerlof and Robert J. Shiller

• Available on Amazon or audible or iTunes

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Websites• There are a couple of useful blogs

– www.irisheconomy.ie – http://delong.typepad.com/

• The following web sites are useful for data:– http:/www.cso.ie– http:/www.finance.gov.ie– http:/www.centralbank.ie– http:/www.ecb.org

• Online access via the UCD library to OECD and IMF databases

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Course Website • Course website (Vincenthogan.ie)

– Old version of course in on blackboard• This blog will be used to present the

course material:– Notes will be posted before each class in

powerpoint and pdf– exercises will be posted regularly– Audio files of each lecture – extra readings if applicable– announcements relating to the class.

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OutlineTo be amended as necessary

1. What is the Point of Macro and how do we do it?2. The Closed Economy in the Short Run (IS-LM

Model)3. The Open Economy in the Short Run4. The Supply Side: how is policy affected by

peoples expectations?5. Inflation and Unemployment: is there a Trade-off?6. Why is there Unemployment?7. What determines consumption?8. Government Debt9. What determines Investment?10. Economic Policy and Politics

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• The main Exam in May will be worth 70%• There will be a mid-term assessment

(MCQ) in Feb which will count for 30%

Assessment