The objective of this course is to obtain deeper understanding about some important macroeconomic phenomena observed in real economy, like economic growth, unemployment, sustainability of public debt and so on.
To this end, we will extend the models in Macroeconomics I to more sophisticated ones.
By the end of this course, students will be able to:
1) Examine the role of capital accumulation, population growth, and technological progress for economic growth both qualitatively and quantitatively.
2) Grasp the role of social security system (e.g., public pension system) for intergenerational redistribution of wealth.
3) Understand the reason why the time inconsistency problem arises when the central bank determines the optimal monetary policy.
4) Investigate the effect of future income uncertainty on the consumption-saving decision.
Solow model, steady state, golden rule, technological progress, balanced growth path, convergence, current account deficit, external debt, frictional unemployment, structural unemployment, Ricardian equivalence theorem, Phillips curve, time inconsistency, precautionary savings
|✔ Specialist skills||✔ Intercultural skills||Communication skills||Critical thinking skills||Practical and/or problem-solving skills|
I will give students homework assignments after we have finished each topic covered in this course.
|Course schedule||Required learning|
|Class 1||Growth Accounting (1)||Understand the concept of growth accounting.|
|Class 2||Growth Accounting of Japanese Economy||Observe the source of economic growth in the post-war Japanese economy.|
|Class 3||Analysis of Labor Market (1): Theories of Labor Supply and Demand||Understand the theories of labor supply and labor demand.|
|Class 4||Analysis of Labor Market (2): Theory of Unemployment||Understand several causes of unemployment.|
|Class 5||Money and Banking Sector||Under stand the role of money and banking sector.|
|Class 6||Macroeconomic Impacts of Fiscal Policy (1): Ricardian Equivalence Theorem||Understand the fiscal budget balance|
|Class 7||Macroeconomic Impacts of Fiscal Policy (2): Social Security||Discuss the social security system|
|Class 8||Midterm Evaluation||Review of the first half of the course (classes 1–7) and midterm exam.|
|Class 9||Macroeconomic Impacts of Monetary Policy (1): Phillips Curve||Understand the definition of Phillips curve, and then grasp how the curve is depicted in Japan.|
|Class 10||Macroeconomic Impacts of Fiscal Policy (2): 社会保障||Discuss the social security system|
|Class 11||Dynamic General Equilibrium Model (1): Optimization in a Infinite-horizon Problem||Derive the conditions for infinite-horizon optimization.|
|Class 12||Dynamic General Equilibrium Model (2): Ramsey Model||Understand the Ramsey model.|
|Class 13||Dynamic General Equilibrium Model (2): Theory of Business Cycles||Understand the business cycle theory.|
|Class 14||Review of the Course||Review of the course.|
To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.
Handouts or slides used for each class will be available on the corresponding page of Tokyo Tech OCW.
Mankiw, N.G. Macroeconomics, Worth Publishing.
Futagami, K. and Hori, K. Macroeconomics, Yuhikaku (in Japanese)
Shibata, A. and Unayama, T. First Steps in Macroeconomics, Yuhikaku (in Japanese)
Hiraguchi R. and Inaba, M. Macroeconomics: From Basic Principles to Applications, Yuhikaku (in Japanese)
The final grade is based on the midterm examination (50%) and final examination (50%).
The prerequisite for this course is Macroeconomic I.