Econ 702
Macroeconomics I
Charles Engel and Menzie Chinn
Engel:
Office hours: TTh 1:30-3:00, and by appointment
7460 Sewell Social Sciences Building
Email: cengel@ssc.wisc.edu
Cell (please text only, no phone calls): 608-335-6986
WeChat ID: cengel1111
Link to Menzie Chinn's Econ 702 website
Homework:
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Assigned |
Due |
Homework |
Answers |
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Jan. 22 |
Jan. 29 |
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Jan. 29 |
Feb. 5 |
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Feb. 5 |
Feb. 12 |
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Feb. 12 |
Feb. 19 |
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Feb. 19 |
Feb. 26 |
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Feb. 26 |
March 4 |
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March 4 |
March 11 |
Lecture Slides:
Lecture
1: Introduction and Macroeconomic Data
Lecture
2: Solow Growth Model I
Lecture
3: Solow Growth Model II
Lecture
4: Augmented Solow Growth Model
Lecture
5: Evidence on Long-Run Growth
Lecture
6: Optimal Consumption and Saving: Part 1
Lecture
7: Optimal Consumption and Saving: Part 2
Lecture
8: Optimal Growth Model
Lecture
10: "Shocks" in the Neoclassical Model
Lecture 11: Assessing the Neoclassical Model
Readings
The main textbook is
Garin, Julio; Robert Lester; and, Eric Sims. 2018. Intermediate Macroeconomics. https://www3.nd.edu/~esims1/gls_textbook.html
Other readings are listed below.
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Topic/Reading |
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1/22 |
Introduction and Macro Data
Garin, Lester and Sims, Chapters 1, 2 and 3
Engel, Charles. 2017. "Econ 666 Notes. Chapter 1: Balance of Payments Accounting and National Income Accounting." Pages 28-37.
Furman, Jason. 2016. "Extracting the Signal from the Noise: Seven Tips for Interpreting Macroeconomic Data." Milken Institute Review http://www.milkenreview.org/articles/extracting-the-signal-from-the-noise-7-tips-for-interpreting-macroeconomic-data
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1/27 |
International Comparisons
Garin, Lester and Sims, Chapter 4.
Central Intelligence Agency, The World Factbook. "Economy" section for China, Colombia, Czechia, India, South Korea, United States.
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1/29 |
Solow Growth Model
Garin, Lester and Sims, Chapter 5, section 5.1
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2/3 |
Solow Growth Model
Garin, Lester and Sims, Chapter 5, sections 5.2-5.3
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2/5 |
Solow Growth Model
Garin, Lester and Sims, Chapter 5, sections 5.4-5.6
Lucas, Robert E. Jr. 1988. "On the Mechanics of Economic Development." Journal of Monetary Economics 22. Pages 3-17.
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2/10 |
Augmented Solow Growth Model
Garin, Lester and Sims, Chapter 6
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2/12 |
Cross-Country Income Differences
Garin, Lester and Sims, Chapter 7
Acemoglu, Daron; Simon Johnson; and, James A. Robinson. 2005. "Institutions as a Fundamental Cause of Long-Run Growth," in Philippe Aghion and Steven Durlauf, eds., Handbook of Economic Growth, vol. 1, part A, 385-472.
Zillibotti, Fabrizio. 2017. "Growing and Slowing Down Like China." Journal of the European Economic Association 15, 943-947, 952-988.
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2/17 |
Consumption-Saving Model
Garin, Lester and Sims, Chapter 9, sections 9.1-9.3
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2/19 |
Consumption-Saving Model
Garin, Lester and Sims, Chapter 9, section 9.4
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2/24 |
Optimal Growth Model
Engel, Charles. 2019. "Notes on Optimal Growth Model."
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2/26 |
Neoclassical Model
Garin, Lester and Sims, Chapter 17
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3/2 |
Shocks in Neoclassical Model
Garin, Lester and Sims, Chapter 18
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3/4 |
Taking the Neolcassical Model to the Data
Garin, Lester and Sims, Chapter 19
Rebelo, Sergio. 2005. "Real Business Cycle Models: Past, Present and Future." Scandinavian Journal of Economics 107, 217-238.
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3/9 |
Wrap-up on Neolcassical Model
Garin, Lester and Sims, Chapters 20 and 21
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3/11 |
New Keynesian IS-LM-AD
Garin, Lester and Sims, Chapter 23
Gali, Jordi, "The State of New Keynesian Economics: A Partial Assessment," JEP 2018. https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.32.3.87
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3/12 |
First Exam: 5:30-7:00 PM Social Sciences 5208 |
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3/23 |
New Keynesian Supply Side
Garin, Lester and Sims, Chapter 24
Nakamura, Emi, and Jon Steinsson. "Price rigidity: Microeconomic evidence and macroeconomic implications." Annu. Rev. Econ. 5.1 (2013): 133-163. https://www.ssc.wisc.edu/~mchinn/Nakamura_Steinsson_w18705.pdf |
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3/25 |
New Keynesian Supply Side
Garin, Lester and Sims, Chapter 24
Coibion, Olivier, Yuriy Gorodnichenko, and Rupal Kamdar. "The formation of expectations, inflation, and the phillips curve." Journal of Economic Literature 56.4 (2018): 1447-91. https://www.ssc.wisc.edu/~mchinn/Coibion_jel.20171300.pdf
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3/30 |
Shocks in the New Keynesian Model
Garin, Lester and Sims, Chapter 25
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4/1 |
Shocks in the New Keynesian Model
Garin, Lester and Sims, Chapter 25
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4/6 |
Dynamics in the New Keynesian Model
Garin, Lester and Sims, Chapter 26
Ahmed, Shaghil, Andrew Levin, and Beth Anne Wilson. "Recent US macroeconomic stability: good policies, good practices, or good luck." Review of economics and statistics 86.3 (2004): 824-832. https://www.federalreserve.gov/pubs/ifdp/2002/730/ifdp730.pdf
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4/8 |
Dynamics in the New Keynesian Model
Garin, Lester and Sims, Chapter 26
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4/13 |
Monetary Policy
Garin, Lester and Sims, Chapter 27
Orphanides, Athanasios, and Simon van Norden. "The unreliability of output-gap estimates in real time." Review of economics and statistics 84.4 (2002): 569-583. https://www.federalreserve.gov/Pubs/FEDS/1999/199938/199938pap.pdf
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4/15 |
Monetary Policy
Garin, Lester and Sims, Chapter 27
Hamilton, James D., et al. "The equilibrium real funds rate: Past, present, and future." IMF Economic Review 64.4 (2016): 660-707. https://econweb.ucsd.edu/~jhamilto/USMPF_2015.pdf |
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4/20 |
Zero Lower Bound
Garin, Lester and Sims, Chapter 28
Kuttner, "Outside the Box: Unconventional Monetary Policy in the Great Recession and Beyond," Journal of Economic Perspectives 32(4) (Fall 2018). https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.32.4.121
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4/22 |
Bond Pricing and the Term Structure
Garin, Lester and Sims, Chapter 33
Chinn, Menzie and Kavan Kucko, "The Predictive Power of the Yield Curve across Countries and Time," International Finance (March 2015) http://www.ssc.wisc.edu/~mchinn/Chinn_Kucko_IF2015.pdf
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4/27 |
Financial Frictions
Garin, Lester and Sims, Chapter 35
Bernanke, Gertler and Gilchrist, "The Financial Accelerator and the Flight to Quality," The Review of Economics and Statistics 78(1). (Feb., 1996): 1-15. http://www.ssc.wisc.edu/~mchinn/bernanke_etal_restat96.pdf
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4/29 |
Review
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5/1 |
Second Exam: 5:30-7:00 PM Social Sciences 5208 |