5EN453, 2 Lectures (6 ECTS) Lecturer: Pavel Potužák, Dpt. of Economics Office hours: Thursday 13:15-15:15, NB343 Website: http://keke.vse.cz/studium/materialy/5en453-macroeconomics-ii/ Textbook: David Romer (2006): Advanced Macroeconomics, 3rd edition (or higher) Download: kekebooks.vse.cz (psw: keke123) Barro: Macroeconomics (1997,2008) (Optional)
Macro II Introduction Course information • • • • 5EN453, Lectures (6 ECTS) Lecturer: Pavel Potužák, Dpt of Economics Office hours: Thursday 13:15-15:15, NB343 Website: http://keke.vse.cz/studium/materialy/5en45 3-macroeconomics-ii/ Course information • Textbook: David Romer (2006): Advanced Macroeconomics, 3rd edition (or higher) • Download: kekebooks.vse.cz (psw: keke123) • Barro: Macroeconomics (1997,2008) (Optional) Course information • Distribution of points: 40 Points for Midterm in the 8th week (12th for ill students, or in Exam period in case of even longer illness): It covers 1st part of the semester (Solow, Ramsey) 40 Points for Final test in the Exam period: It covers 2nd part of the semester (from Diamond to NKE) 20 points for Problem sets (HW).Each for p Course information • 100 points altogether: 90-100 points … 75-89 points … 60-74 points … 50-59 … 4+ implies 2nd attempt Comprehensive test covering the whole semester for 100 p (Then you need at least 60 points to pass.) 0-49 … (Failed) No Selective Excuse („Omluveno“) in this Course (only General,i.e all (or majority of) courses), since there will be a wide range of terms in the Exam period The Science of Macroeconomics • Master-economist must possess a rare combination of gifts He must be mathematician, historian, statesman, philosopher —in some degree He must understand symbols and speak in words He must contemplate the particular in terms of the general and touch abstract and concrete in the same flight of thought He must study the present in the light of the past for the purposes of the future No part of man’s nature of his institutions must lie entirely outside his regard He must be purposeful and disinterested in a simultaneous mood; as aloof and incorruptible as an artist, yet sometimes as near to earth as a politician.” J M Keynes "Alfred Marshall, 1842-1924" The Economic Journal, (Sept.,1924) Keynes(1936) as a father of Macroeconomics The Science of Macroeconomics • Macroeconomics, the study of the economy as a whole, attempts to answer questions like: Why have some countries experienced rapid growth in incomes while others stagnated in poverty? Why some countries have high rates of inflation while others maintain stable prices? Why all countries experience recessions and depressions and (how) can (and should?) government policy reduce the frequency and severity of these episodes? U.S Real GDP per capita (2000 dollars) 9/11/2001 40,000 First oil price shock 30,000 long-run upward trend… 20,000 Great Depression Second oil price shock 10,000 World War II 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Growth rates of real GDP, U.S 10 Real GDP growth rate Average growth rate -2 -4 1970 1975 1980 1985 1990 1995 2000 2005 Real GDP in the Czech Republic (in 2000 prices) mil of CZK 3900000 3700000 3500000 3300000 3100000 2900000 2700000 2500000 2300000 2100000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 15 16 17 ... • 5EN453, Lectures (6 ECTS) Lecturer: Pavel Potužák, Dpt of Economics Office hours: Thursday 13:15-15:15, NB343 Website: http://keke.vse.cz/studium/materialy/5en45 3-macroeconomics -ii/ Course... 1842-1924" The Economic Journal, (Sept.,1924) Keynes(1936) as a father of Macroeconomics The Science of Macroeconomics • Macroeconomics, the study of the economy as a whole, attempts to answer... information • Textbook: David Romer (2006): Advanced Macroeconomics, 3rd edition (or higher) • Download: kekebooks.vse.cz (psw: keke123) • Barro: Macroeconomics (1997,2008) (Optional) Course information