Syllabus

Course title : Macroeconomics II

Semester : Fall 2018
Credits : 3
Course Code : BECO 212
Class room : B 103
Class schedule : Wednesday (10:30-12:30) and Thursday (8:00-10:00)
Instructor : Niraj Poudyal
Email : niraj.poudyal@ku.edu.np
Office : Disability Research Center
Office hours : 9am-4pm, Sunday-Friday

Course outline
This course contemplates to deliver some of the most important macroeconomic models in the literature such as
Solow growth model and Samuelson’s multiplier accelerator model. In depth algebraic review of IS-LM model
will be done before we come to AD–AS model. The course will introduce state of the art – basic dynamic
general equilibrium model and application of loss function of for appropriate policy actions. By the end of the
course students are expected to be familiar with the macroeconomic models that are commonly used in the
literature and are aware of the basic components and applications of those models.

Course Content1
1. Keynesianism: The macroeconomics of wage and price rigidity (4 sessions) (Book 1: Chapter 9
and 11)
 Algebraic derivation of IS-LM and AD-AS model
 Efficiency wage model
 Keynesian business cycle Theory
 The multiplier in the Keynesian model

2. Unemployment and Inflation (3 sessions) (Book 1: Chapter 12)

 The expectations-augmented Phillips Curve
 Lucas Critique
 Long run Phillips curve
 Costs of inflation
 Costs of unemployment

3. Growth Dynamics (6 sessions) (Book 1: Chapter 6, Book 3: Chapter 3)

 Set up of the Solow model
 Fundamental determinants of Long run living standards
 Endogenous Growth theory
 Harrod Domar Model of economic growth
 Samuelson’s multiplier accelerator model of macroeconomy

4. Monetary Policy (3 sessions) (Book 2: Chapter 5)

 Inflation, disinflation and deflation
 Monetary Policy paradigms
 The three-equation model (IS-PC-MR)
5. Fiscal Policy (1 session) (Book 2)
 Automatic stabilizers
 Deficits and debts
 Fiscal policy rules
6. Dynamic General Equilibrium Approach (6 sessions) (Book 3: Chapter 1 and 2)
 Traditional macroeconomics versus DGE
 Introduction to DGE macroeconomics
 The centralized economy models.
1
Session plan is likely to be flexible
Text Book and References
Our primary textbooks for this course are
1. Book 1: Macroeconomics by Andrew Abel, Ben S. Bernanke and Dean Croushare
2. Book 2: Macroeconomics by Wendy Carlin and David Soskice.
3. Book 3: Macroeconomic Theory by Michael Wickens

Delivery of the course

The class teachings and discussions will cover the prescribed course outline. I will use blackboard and chalk
apart from multimedia as understanding economics heavily relies on how much you draw and redraw graphs
and solve numerical problems. Apart from this, you may be given various reading materials in the form of
articles and research papers. Concentrate on how the writers of the articles have applied the concepts learned in
the class and link them to how you could use them further.

Problem sets and assignments will be given to you as and when we cover the related topics. Make a serious
attempt to work the problems on your own as you are required to uniquely present the assignments. To sharpen
your understanding, ask questions in the class, do the assignments and make sure that you understand the
answers. Read as much as you can: books, reading materials and the business section of newspapers and
magazines.

Assignments
All the assignments will be sent to your email address. You must submit the assignments via email before the
due date expires. There will be no excuses for delay in your assignment submission. Try to start doing your
assignment as soon as possible. Do not wait until it is last hour. Usually, I will assign you one assignment after
finishing each chapter.

Evaluation Criteria
The best way to do well in this course is to attend the classes regularly, ask questions, read the book and do the
assignments yourself. The following assessment will be implemented:
S.N
Nature of Assessment Weight Remarks
o
Term exams (two)** Two equally weighted midterm exams with
1 20%
(TBA) multiple choice questions (MCQ).
2 Assignments 15% Assignments are to be submitted before due date
3 Presentations and participations 10% Dates: TBA
Students must be present in at least 80% of the
4 Attendance 5%
classes held
Final exam **
3 50% To be held by the University
(TBA)
Term exams will be held in regular class room.
**

Missed assignments or exams

As far as I am concerned, the ONLY acceptable reasons for missing exams or assignments are medical or family
emergencies or athletic or other university-sponsored travel (with a letter from the coach or advisor). If any of
these are the case, let me know as soon as you can. Always let me know in advance (if at all possible) if you
need to miss an exam or complete an assignment late.

Session plan
Each session is of 120 minutes, and two sessions each week. During this semester, there are 6 working weeks
and we have about 24 sessions to complete the course.

Prior readings include books provided in reference above which will help you understand the concepts better in
the class and also improve your class participation. Apart from the book readings, a number of articles may also
be given to you. Read the articles properly and understand how the writer has used the economic concepts.

Honor code
Cheating in any way on an exam and assignments will not be tolerated. Offenders will be reported to the Dean’s
office.

Students with disabilities

Any student who needs an accommodation because of a disability (learning disability, attention deficit disorder,
physical disability, etc.) should let me know well before scheduled exams. Take my advice: if you are eligible to
any benefits you will want to take advantage of that.
------------------------------------------- GOOD LUCK!! -------------------------------------