Kinh tế vĩ mô Chap 1

MACROECOMICS I Lecturer: Pham Xuan Truong Foreign Trade University, Faculty of International Economics Email: truongpx@ftu.edu.vn Course content Chapter Introduction to macroeconomics Chapter Data of Macroeconomics Chapter Economic growth Chapter Saving, investment and financial system Chapter Unemployment Chapter Aggregate demand and Aggregate supply Chapter Aggregate expenditure and Fiscal Policy Chapter Money and Monetary Policy Chapter Inflation and Phillips curve Chapter 10 Macroeconomics in open economy Objectives Acquire basic background of macroeconomics (GDP, CPI, AD-AS model, unemployment, inflation, foreign exchange rate, fiscal policy, monetary policy) Use knowledge of the course to study other specialized economics (e.g development economics, public economics, environmental economics, econometrics) Apply academic background to practices (understand what financial and economic news imply, explain what happens in the economy, estimate or forecast economic policy) Course implementation Teaching and learning methods: In class contact hours, there will be lectures, discussions and assistance with student’s assignment works, reading and using books During the seminars the students will be expected to discuss the provided topics on the problems of real economy Assessment methods: There is a written assignment and final examination It is worthy 30% and 60% respectively Class participation is 10% Reading Textbooks N.Gregory Mankiw,Principle of Macroeconomic, International Student Edition,Third edition,Worth Pulisher,2003 600 câu hỏi trắc nghiệm kinh tế học vĩ mô bản, NXB Thông tin truyền thông, 2012 Frank and Bernanke, Principles of Macroeconomics Third edition, 2007 Glenn Hubbard and Tony O’Brien, Macroeconomics, Second edition, 2008 D.Begg,S Fisher,R.Dorchbusch,Economics,Third edition,McGraw-Hill Book Company,1991 Other references The richest man in Babylon – Geogre Sclason Naked Economics – Charles Wheelan The Undercover Economist – Tim Harford 80/20 Principle – Richard Kock Currency War – Song Hongbing The exlusive quest for growth – William Easterly Blue Ocean Strategy – Wchankim, Renee Mauborgne Good luck – Alex Rovira, Fernando Trias de Bes How to stop worrying and start living – Dale Carnegie 10 If you want it done right, You don’t have to it yourself – Donna M.Genett 11 Who moved my cheese – Spencer Johnson 12 More sex is safer sex – Steve E Landsburg 13 Three idiots (Indian version) film Useful Websites Domestic statistical websites http://www.gso.gov.vn/default.aspx?tabid=217 http://www.customs.gov.vn/Lists/TinHoatDong/TinTuc.aspx?Category=Th%E1%BB%91ng %20k%C3%AA%20H%E1%BA%A3i%20quan http://www.mof.gov.vn/portal/page/portal/mof_vn/1351583 http://fia.mpi.gov.vn/Default.aspx?ctl=FIAs&TabID=4&mID=265 http://www.vietnamtourism.gov.vn/index.php?cat=2020 http://vneconomy.vn/tai-lieu.htm http://www.vnep.org.vn/vi-VN/Trang-chu/.htm Useful Websites Foreign statistical websites http://pwt.econ.upenn.edu/ http://www.oecd.org/statsportal/0,3352,en_2825_293564_1_1_1_1_1,00.html http://www.adb.org/Economics/ http://www.imf.org/external/data.htm http://www.un.org/en/databases/ http://data.worldbank.org/data-catalog/world-development-indicators http://www.bis.org/statistics/index.htm http://finance.yahoo.com/actives?e=us http://www.mhhe.com/economics/dornbusch8e/quizzes/quizzes.mhtml http://stat.wto.org/CountryProfile/WSDBCountryPFReporter.aspx?Language=E http://www.trademap.org/tradestat/Country_SelProduct_TS.aspx http://www.gapminder.org/data/ http://www.amis-outlook.org/ http://www.numbeo.com/common/ Economic information website http://cafef.vn/ http://gafin.vn/ http://vneconomy.vn/ http://www.vnep.org.vn/vi-VN/Default.html http://ecna.gov.vn/Pages/Index.aspx http://kinhtetrunguong.vn/ Chapter Introduction to macroeconomics Mentor Pham Xuan Truong truongpx@ftu.edu.vn Content I Basic concepts in Economics Scarcity Opportunity cost Three fundamental questions in economic II Overview of macroeconomics What is macroeconomics Objects and methods of research Macroeconomic system Objectives and policy tools of government to adjust macroeconomy I Basic concept in Economics Scarcity - Definition: The situation in which unlimited wants exceed the limited resources available to fulfill those wants - The law of diminishing marginal returns/ product/ productivity Opportunity cost - Definition: The value of the next-best alternative that must be forgone in oder to undertake the activity - The law of increasing opportunity cost I Basic concept in Economics Economics The study of the choices people make to attain their goals, given their scare resources Three fundamental questions in economic    Produce what How produce Produce for whom Normative economics vs positive economics Normative economics is a part of economics that expresses value or normative judgments about economic fairness, or what the outcome of the economy or goals of public policy ought to be Positive economics is the branch of economics that concerns the description and explanation of economic phenomena It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories II Overview of macroeconomics What is macroeconomics Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decisionmaking of an economy as a whole, rather than individual markets This includes national, regional, and global economies With microeconomics, macroeconomics is one of the two most general fields in economics Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets II Overview of macroeconomics What is macroeconomics While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of longrun economic growth (increases in national income). Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy II Overview of macroeconomics What is the object of macro and micro Should FPT invest in new technology Effect of increase of petroleum price on transportation Whether Increase in input cost leads to increase in CPI How Productivity affects GPD II Overview of macroeconomics Objects and methods of research Objects Macroeconomics focuses on fundamental objects     Total output (aggregate output), economic growth, business cycle Price level, inflation Unemployment, social welfare International trade, balance of payment, foreign exchange rate Questions revolving abovementioned objects are the issues researched by macroeconomists II Overview of macroeconomics Objects and methods of research Methods of reasearch Economists use economic models to explore the choices people make and the consequences of those choices A model is any simplified representation of reality that is used to better understand real-life situations In economics, a model is theoretically constructed to explain economic processes by a set of variables and a set of logical and/or quantitative relationships between them The economic model often but not always using mathematical techniques II Overview of macroeconomics Objects and methods of research Methods of reasearch Models are important because their simplicity allows economists to focus on the effects of only one change at a time That is, they allow us to hold everything else constant and study how one change affects the overall economic outcome So an important assumption when building economic models is the other things equal assumption, which means that all other relevant factors remain unchanged Collecting data Observations Hypothesis Building model with and check assumptions accuracy of the model II Overview of macroeconomics Macroeconomic system Macroeconomic system has three components: input, marcoeconomic activities recording system (black box), output + input: exogenous and endogenous variables + black box: AD – AS model under affect of variables will produce macroeconomic outcome + output: total output, inflation, unemployment, foreign exchange rate, interest rate Inputs will go to black box, in which they interacts with market principles and then outcomes of economy will be produced under aggregate numbers For example: draught occurs then price level increases and output of the economy decreases, which resulted from interaction of AD and AS II Overview of macroeconomics Objectives and policy tools of government to adjust macroeconomy Objectives Economic goals Content Economic efficiency Making the most resources Economic freedom Freedom from government intervention in the production and distribution of goods and services Economic security and predictability Assurance that goods and services will be available, payments will be made on time, and a safety net will protect individuals in times of economic disaster Economic equity Fair distribution of wealth Economic growth and innovation Innovation leads to economic growth, and economic growth lead to higher standard of living Other goals Environmental protection, human right protection II Overview of macroeconomics Objectives and policy tools of government to adjust macroeconomy Policy + Fiscal policy: the use of government revenue collection (taxation) and expenditure (spending) to influence the economy + Monetary policy: the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability + Income policy: economy-wide wage and price controls, most commonly instituted by governments as a response to inflation, and usually below market level + Trade policy (commercial policy): a set of rules and regulations that are intended to change international trade flows, particularly to restrict imports Key concepts  Scarcity  Opportunity cost  Economics  Macroeconomics  Economic model  Normative economics, Positive economics  Macroeconomic system  Fiscal policy, Monetary policy, Income policy, Trade policy ...Course content Chapter Introduction to macroeconomics Chapter Data of Macroeconomics Chapter Economic growth Chapter Saving, investment and financial system Chapter Unemployment Chapter Aggregate... http://www.gso.gov.vn/default.aspx?tabid= 217 http://www.customs.gov.vn/Lists/TinHoatDong/TinTuc.aspx?Category=Th%E1%BB%91ng %20k%C3%AA%20H%E1%BA%A3i%20quan http://www.mof.gov.vn/portal/page/portal/mof_vn /13 515 83 http://fia.mpi.gov.vn/Default.aspx?ctl=FIAs&TabID=4&mID=265... participation is 10 % Reading Textbooks N.Gregory Mankiw,Principle of Macroeconomic, International Student Edition,Third edition,Worth Pulisher,2003 600 câu hỏi trắc nghiệm kinh tế học vĩ mô bản, NXB