Universitas Faculty of Economics

Indonesia and Business

Master of Economics Planning and Development Policy

SYLLABUS
THEORY AND POLICY OF MACROECONOMICS
Second Semester of 2019/2020

Lecturers
No. Name
1 Tirta Hidayat
2 Willem A. Makaliwe
3 Risna Triandhari
4 Kiki Verico
5
6

Tutors
No. Name E-mail
1. (to be announced) -

Subject Code ECEM 800201

Subject Title THEORY AND POLICY OF MACROECONOMICS
Credit Value 3
Year/Semester 1/1
Day/Hour -
Subject Type Study Program Compulsory
Pre-requisite -
Role and This course aims to provide a framework for a basic understanding of the concept/theory
Purposes of macroeconomy. The approach used is graphically and simple math using empirical
examples. Materials provided include: (i) macroeconomic role in planning and public
policy; (Ii) the aggregate demand, in particular the relationship between the goods market
and the money market in the domestic economy; (Iii) the role of expectations in the macro
economy; (Iv) the disclosure of the macro economy; (V) the aggregate supply, the
deepening of the factors of production in the economy, especially the labor market,
unemployment, and inflation; and (vi) economic growth.

Subject Learning Course Objectives:

Outcomes After finishing this course, students are expected to understand the basic framework of
macroenonomy including:
[1] Macroeconomic history
[2] Introduction to macroeconomic theory
[3] Overview of macroeconomic outlook
[4] Understanding and analyzing macroeconomic data
[5] Macroeconomic theory and applications: IS-LM
[6] Macroeconomic theory and applications: AD-AS
[7] The role of expectations in macroeconomic policy
[8] Transparency in the economy
[9] Theory and policy of economic growth
[10] Debate on macroeconomic policies
[11] Analysis of various economic crisis
[12] Political cycles and macroeconomics

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 AACSB Learning Goal (LG) and Learning Objective (LO):
Assessed LG and LO:
a. LG Global Awareness (GLO): Students have global perspectives and understand
its relationship to local society
LO: Students are able to demonstrate understanding of the issues in global
society and their impact on policy design process
[1] Students are able to demonstrate an understanding of global economic
issues
[2] Students are able to identify impact of global economy to national
economic policy
b. LG Knowledge in Applied Economics (KNO): Students are able to apply
economics theory in policy
LO: Able to explore economic issues and relevant policies using appropriate
economic theories (LG KNO – LO1)
[1] Students demonstrate an understanding of economic theories
[2] Identify the element of economic problem and policy issues
[3] Students are able to explore economic issues and its relevant policies
using appropriate economic theories
LG and LO for Teaching and Learning Activities (TLA):
a. LG Critical Thinking (CT): Students are able to demonstrate critical and
integrative thinking in policy design
LO: Students are able to provide policy recommendations to solve economic
problem (LG CT – LO1)
[1] Students are able to identify problems
[2] Students are able to analyze problems
1Subject Synopsis/ Session Topics Subtopics Readings
Indicative Syllabus 1 Introduction to  Introduction to macroeconomic OB = 1,2
macroeconomics theory DF = 1,2
 Macroeconomic history GM = 1,2
2 Introduction to  Understanding and analyzing OB = 2
macroeconomics macroeconomic data DF = 2
GM = 2

IMF Economic
outlook

Indonesian
economic
quarterly
worldbank

Econoomic
report – Bank
Indonesia and
BKF Kemenkeu
3 Aggregate Supply  Agregate demand (AD) OB = 3,4,5
and Aggregate  Goods market equilibrium: DF = 10
Demand Derivation of the IS curve GM = 10
 Money market equilibrium:
Derivation of the LM Curve
 IS-LM Model
4 Aggregate Supply  Aggregate demand (AD) OB = 6
and Aggregate  Derivation of the AD curve DF = 5,6,11
Demand  Shifting of the AD curve GM = 11
 Fiscal and monetary policy
 Regional/national/international
empirical study
5 Aggregate Supply  Aggregate supply (AS) OB = 7,8,9
and Aggregate  Labor market DF = 5,6,7

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 Demand  Derivation of short run and long GM = 13
run AS curve
 Shifting of the AS Curve
 Regional/national/international
empirical study
 Inflation and unemployment:
phillips curve
6 Aggregate Supply  AD AS model OB = 7
and Aggregate  Short run equlibrium DF = 5
Demand  Long run equilibrium GM = 9
 Regional/national/international
empirical study
7 The role of  Interest rate OB = 14,15, 16
expectation in  The role of expectation in the DF = 13,14,17
macroeconomics market GM = 16,17
 Money and capital market
 Consumption theory
 Investment Theory
Mid Term Examination
8 Open Economy  Openness in good market OB = 17,18
 Export and import: good market DF = 12
and exchange rate GM = 12
9 Open Economy  Openness in financial market OB = 17,19
 Balance of payment DF = 12
 Interest rate and exchange rate GM = 12
10 Open Economy  Good market and financial OB = 17,19,20
market interaction DF = 12
 Exchange rate regime GM = 12
 Fiscal and monetary policy in
open economy
 Regional/national/international
empirical study
11 Economic growth  Facts about economic growth OB = 10-12
 Solow growth model DF = 4
 Endogenous growth model GM = 7,8
12 Economic growth  Policy to support economic OB = 12-13
growth DF = 4
 Regional/national/international GM = 7,8
empirical study Journal/article
13 Analysis of various  Regional/national/international Journal/article
economic crisis, empirical study
Political cycles and
macroeconomics

14 Debate on  Passive vs active policies OB = 21-23

macroeconomic  Rules vs discretion DF = 18
policies  Policies under uncertainty GM = 14
 Regional/national/international
empirical study
Final Examination
Teaching/Learning Teaching method uses active lecturing and class discussions, in which students achieve the
Methodology study objectives by discussing and completing related problems or cases under the
guidance of lecturer and tutor. The problems and cases are taken from the textbook and
other sources. Students are expected to read required readings for a particular session.
There are several sessions that use collaborative learning and case study.

Participation:
Individually, each student is required to participate actively in teaching and learning: Ask

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 questionsin accordancewith thetopic, Preparingto answerquestions, Discuss issuesrelated to
thetopic.
To be eligible, students must read textbooks and other materials provided.
Attendance:
Minimum 80% of Total Lecture:
1. A maximum of 3 (three) times absent, for no reason.
2. Students who came 15 minutes after class begins is considered not present.
Assessment Method LG LG LG
in Alignment with Percentage of KNO – KNO – KNO –
Description TLA
Intended Learning evaluation* LO1** LO1** LO1**
Outcomes Trait 1 Trait 2 Trait 3
*) Students grading Mid Examination(dan 35% 50% 50% 50%
**) AACSB kelas pembekalan)
Assessment Final Examination 35% 50% 50% 50%
Paper/Assignment – 10% 40%
Before Mid Test
Paper/Assignment – 10% 40%
Before Final Test
Assistance/Quiz-Before 5% 10%
Mid Test
Assistance/Quiz-Before 5% 10%
Final Test
Total 100% 100% 100% 100% 100%
LG GLO – LO1**
Description LG GLO – LO1** Trait 1 TLA
Trait 1
Mid Examination (dan 50% 50%
kelas pembekalan)
Final Examination 50% 50%
Paper/Assignment – 40%
Before Mid Test
Paper/Assignment – 40%
Before Final Test
Assistance/Quiz-Before 10%
Mid Test
Assistance/Quiz-Before 10%
Final Test
Total 100% 100% 100%
Details of learning The specific learning methods used in this subject are:Class Discussion, Lecture,
methods Discussion, Learning Cooperation (collaborative learning)
Assistance Schedule Tutorial will be held six (6) times in one semester
Student study effort Class Contacts
expected Lectures 25 Hours
Tutor 12 Hours
Collaborative learning 15 Hours
Case study and presentation 25 Hours
Other student study effort outside the class
Preparation for assignment/tests 42 Hours
Reading list and International Book
references [1] Mankiw, Gregory N. (2015), Macroeconomics, 9th edition, New York : Worth
Publishers. (GM).
[2] Blanchard, Oliver. (2017), Macroeconomics, 7thedition, New Jersey : Prentice Hall.
(OB).
[3] Dornbursch, Rudiger and Fisher, Stanley. (1998), Macroeconomics. 7 th edition,
McGraw Hill. (DF).
[4] Abel, Bernanke and Croushore. (2014), Macroeconomics. 8th Edition,
[5] Galbraith, James K. (2014), The End of Normal : The Great Crisis and the Future Of
Gorwth.

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 Indonesian Book as Supplementary
Falianty, Telisa (2019). TeoriEkonomi Makro dan Penerapannya di Indonesia. Jakarta :
Raja GrafindoPersada.

Report
[6] World Economic Outlook IMF
[7] Indonesian Economic Quarterly World Bank
[8] Laporan Ekonomi Bank Indonesia dan BKF Kemenkeu

Journal
[9] Rogoff, Kenneth and Sibert, Anne. (1988), Elections and Macroeconomic Policy
[10] Alesina, Alberto. (1988) . Macroeconomic And Politics. NBER Macroeconomics,
Vol. 3, pp13-62. MIT Press.
[11] Nordhaus,D Willian. (1975). The Political Business Cycle. The Review of Economic
Studies, Vol. 42, No. 2 (April., 1975), pp. 169-190. Oxford University Press.
Plagiarism Students should maintain originality and respect intellectual property rights. Therefore,
students should avoid conducting any act of plagiarism when doing written assignments (if
any), which may take a form of short individual / group paper and / or summary.
The followings are acts of plagiarism:
 Copying paragraphs, sentences, a single sentence, or even a significant part of a
sentence directly without enclosing them in quotation marks and appropriately
footnoted;
 Using and / or developing other’s ideas found in printed materials or film elsewhere
without explicitly referencing them to the respective author or the source of the idea.
Plagiarism is a serious infringement of intellectual property rights. Any assignment that
contains presumed plagiarism will be marked 0 (zero).