1 / 18

ECON 303 Intermediate Macroeconomics Instructor: Bernard Malamud Office: BEH 502

ECON 303 Intermediate Macroeconomics Instructor: Bernard Malamud Office: BEH 502 Phone (702) 895 –3294 Fax: 895 – 1354 Email: bernard.malamud@unlv.edu Website: www.unlv.edu/faculty/bmalamud Office hours: TTh 11:30 -12:30 pm; 2:30 – 3:30 pm a nd by appointment.

alec-wilson
Download Presentation

ECON 303 Intermediate Macroeconomics Instructor: Bernard Malamud Office: BEH 502

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ECON 303 Intermediate Macroeconomics • Instructor: Bernard Malamud • Office: BEH 502 • Phone (702) 895 –3294 • Fax: 895 – 1354 • Email: bernard.malamud@unlv.edu • Website: www.unlv.edu/faculty/bmalamud • Office hours: TTh 11:30 -12:30 pm; 2:30 – 3:30 pm and by appointment

  2. Course Objectives Refresh your command of • Macroeconomic terminology  eco-talk • Macro Facts • Schools of thought

  3. Course Objectives • Master MODELS • Demand Side Models  AD • Multiplier • IS – LM • Supply Side Models  AS • Wage setting – Price setting • Phillips Curve • Role of Expectations … in theory and practice • Stabilizing an Unstable Economy • Understanding the current crisis • Solow Growth Model

  4. Macro - variables • Output … Real GDP … Growth Rate • Unemployment • Inflation … CPI, GDP Deflator Macro Time Frames • Short-run … sticky price • Medium-run … price adjusts • Long-run … economic growth

  5. The State of Macro…a la Krugman Keynes (1936): Y = C + I + G • Economics of effective demand The “Golden Age” (1946 ~ 1973): Fiscal dominance Monetarist challenge: G crowded out/M-matters-most • Friedman: Avoid monetary mischief “Freshwater” dominance: Rat-X/Efficient Markets • Lucas: confusion  recession • Prescott: supply shocks  intertemporal substitution  recession “Saltwater” acquiescence: Rat-X with frictions • New Keynesian models/Monetarist policies Housing bubble: end of Great Moderation • Behavioral finance/return of Keynes

  6. Macro Facts: Recession! Recession Over?

  7. Macro Facts: Recessions/Depression

  8. Macro Facts: Unemployment

  9. Macro Facts: Consumer Confidence

  10. Macro Facts: Deflation!?!

  11. Macro Facts: Money Growth

  12. Macro Facts: Bank Excess Reserves

  13. Macro Facts: Federal Debt

  14. Macro Facts: Trade Deficit

  15. Macro Facts: Merchandise Trade Deficit

  16. Macro Facts: Depreciating Dollar

  17. Where to Find the Numbers • http://research.stlouisfed.org/fred2/ • www.bls.gov/data/ • www.economist.com • www.bea.doc.gov • http://www.gpoaccess.gov/eop/ • www.oecd.org

  18. Macroeconomics The course is divided in three parts: Short -run / Medium-run / Long-run Short - run: IS / LM  AD LM: (M/P)d = (M/P)s (M/P)d = L(Y,i) Ms = [1/(c + r(1-c))]H = {money multiplier} x {monetary base} IS:Y = C + I + G C = c0 + c1 YD = c0 + c1 (Y - T) I = I0 + b1 Y - b2 i  Y = {spending multiplier} x {autonomous spending} Medium - run: AD/AS IS/LM  AD PS/WS  AS PS: P = (1+ μ)(W/A) WS: W= Pe Ae f(u,z)  SRAS and MRAS • In medium - run, Pe = P  (W/P)WS = (W/P)PS = A / (1+ μ) • Natural/Structural/Equilibrium Rate of Unemployment (un ) • “Full - employment” rate of output (YFE)The Green Shaft When AD or AS shift: MR equilibrium  SR equilibrium P  new MR equilibrium Productivity and equilibrium rate of unemployment: Ae = A only in long - run  “Natural rate” decreases with unexpected increase in A Long - run: Growth Steady state: s(Y/AN) = (δ + gN + gA )(K/AN) For simple Cobb-Douglas function: Y = Kα (AN)1-α Y/AN = {s/((δ + gN + gA )}α/(1-α) Golden - rule saving rate = α

More Related