TERM: Spring 2007 COURSE: ECO 3203 Intermediate Macroeconomics INSTRUCTOR: W. T. Coppedge OFFICE: 42/3302 OFFICE HOURS: 9:15am-10:15am, and 2:00-3:00 T and Th, or by appointment PHONE: 620-1226 or 620-2640 FAX: 620-1300 E-Mail: [email protected] Website: www.unf.edu/~wcoppedg

CATALOG PRE-REQ: ECO 2013. Corequisite: Either ECO 3411 or QMB 4600.

CATALOG Analysis of aggregate economic activity and growth. National economic goals and DESCRIPTION: policies for their attainment.

PERSPECTIVE: Macroeconomics is one of (if not) the most important subjects that you will encounter in your college career. And, with the current and ongoing changes in political power and economic philosophy in Washington, this is a particularly poignant time to be exposed to the concepts, theories and nuances of macroeconomics.

The objective of the course is to provide you with a basic understanding of how our economy functions and how governmental policies impact these economic functions. With the Democrats regaining control of the House, we in America are on the verge of a major, yet basic, shift in our emphasis on governmental influence over the economy and how we view the role of government in general. The debate over and eventual implementation of Social Security and Medicare reform will produce profound macro- economic effects. Once again, “social engineers” (or at least those currently in power) are embarking upon a bold directive, one that should prove to be fascinating to watch as it evolves and becomes reality, at least in part.

Hopefully, when you have completed the course and its assigned readings and other materials, you will be better able to appraise the performance of the Congress, the President and the Federal Reserve and to predict the impact of their various policies on the well being of the economy...and on the well being of yourself!

REQUIRED TEXTS: The Economics of Money, Banking and Financial Markets, Frederick S. Mishkin, 8th edition (Pearson/Addison-Wesley) Time and Money, Roger W. Garrison, (Routledge Publishers, 2001) The Choice: A Fable of Free Trade and Protectionism, by Russel D. Roberts, (Prentice- Hall, 2001) What Everyone Should Know About Economics and Prosperity, Gwartney-Stroup-Lee, (St. Martin’s Press, 2005) The Undercover Economist, Tim Harford (Oxford University Press, 2006) The Fair Tax Book, Boortz and Linder (Regan Books, 2005)

OTHER MATERIALS: We will discuss current economic conditions for a few minutes each class period, thus necessitating that you regularly (daily) read the business section of the local paper, the Wall Street Journal or Investors Business Daily. In this regard, please be advised that each student enrolling in one or more Coggin College of Business (CCB) courses numbered 3000 or higher is assess a $7.50 fee during spring, 2005. The fee is just $7.50, regardless of how many CCB courses the student takes. In return, each student is able to pick up a copy of The Wall Street Journal (WSJ) from locations within the College. Moreover, each student will receive access to all of th WSJ’s on-line editions (e.g., European, Asian). Note that CCB pays the WSJ an additional $7.50 for each student for this service, subsidizing 50% of the cost for students. EVALUATION: There will be three (3) exams, each counting 33 1/3% of the final grade. In addition to the exam scores, a student may earn up to 10 additional points through the successful completion of the four (4) book reports. In fact, the book reports are mandatory and any student not completing the four (4) book reports will receive an “I” (Incomplete) in the class, pending completion of this requirement prior to the resumption of classes the following semester. Failure to complete this requirement will result in the student receiving an “F” (Failure) in the class.

During the course of the semester, you are required to read and abstract two (2) articles from scholarly economic journals. The abstracts are to be typed or written legibly (in ink). You must include a full bibliographic citation; i.e., author, title, pages, journal, volume number, date and other pertinent data; e.g., your name. Each abstract is to be done on a (one) 5" x 8" index card. The subject of the abstracts must be germane to the material covered in the text; i.e., inflation, growth, unemployment, exchange rates, interest rates. Journals such as the Journal of Macroeconomics. Brookings Papers on Economic Activity, Southern Economic Journal, Journal of Political Economy, Journal of Money and Credit, American Economic Review and others are appropriate.

In addition to the above abstracts, a written review of What Everyone Should Know About Economics and Prosperity will be due on ______, and a written review of The Choice will be due on ______.

My grading scale is: A = 90-100 B = 80-89 C = 70-79 D = 60-69 F = 0-59

There will be no exceptions to this grading scale.

ATTENDANCE: Attending and participating in class is a necessary component of success in this class. Therefore, ATTENDANCE WILL BE TAKEN (ROLL CALLED) AT RANDOM DURING THE COURSE OF THE SEMESTER. Any student who misses three (3) classes in which the roll is called will have his/her final grade reduced by one (1) full letter grade. Any student who misses six (6) classes in which the roll is called will have his/her final grade reduced by two (2) full letter grades. Any student who misses eight or more classes in which the roll is called will have his/her final grade reduced by three (3) full letter grades. Moreover, the roll will be called at the beginning of class; and, thus, any student arriving after the roll is called will be considered to be absent. PLEASE GOVERN YOURSELVES ACCORDINGLY.

LIBRARY ASSN: Two abstracts of professional journal articles are required.

WRITTEN This course requires one research paper, two abstracts of professional journal articles and COMMUNICATION two book reviews. REQUIREMENTS:

ORAL None COMMUNICATIONS REQUIREMENTS:

COMPUTER None APPLICATIONS: INTERNATIONAL This course contains discussion on comparative advantage and free trade; and their COVERAGE: impact on net exports, and, thus, the equilibrium level of income, employment and the price level.

ENVIRONMENTAL None ISSUES COVERED:

ETHICAL ISSUES None COVERED:

ACADEMIC Simply put, plagiarism is the act of passing off as one’s own idea or product material INTEGRITY: actually taken (bought, borrowed, or stolen) from someone else. In terms of college work, plagiarism appears most often in term papers. The obvious case is the term paper bought, borrowed or stolen from another person and turned in as one’s own. But the work also applies to smaller instances of the same thing: a paraphrase or direct quote (whether a line or a page or two) taken from some other source without a footnote to credit the original author and quotation marks, if you are quoting directly. When one uses someone else’s research or ideas (including that person’s idea of how to put together a particularly telling sentence or phrase), one must attribute the material to its author.

Plagiarism is essentially no different from copying another student’s answers on a test. In either case, my policy is that the student will receive the grade of “F” in the course.

SUGGESTION: It is most important to consider economics as a progressive course, where each lecture builds upon the last. Therefore, (1) reading all chapters as they are assigned (see below), (2) taking thorough notes in class, and (3) surveying systematically the notes taken following the lectures are a methodical way of approaching economics which has proved successful in the past.

MISCELLANEOUS: (1) Please find a seat you wish to stay in so that I can associate names and faces. (2) Please don’t hesitate to ask questions or make comments. Active class participation is an indispensable part of a successful course. (3) Please feel free to stop me if I am going too fast, you don’t understand, you can’t hear me, or any other valid reason. (4) If you have a disability, as defined by the Americans with Disabilities Act (ADA), that might impair your performance in this course, please inform me of the disability during the first week of class so that I may take appropriate action.

ASSIGNMENTS: The schedule below is approximate. We may get behind or we may get ahead. Plan accordingly. Keep up with the reading and the class will be easier and more enjoyable.

Date Topic Reference Mishkin (M), Garrison (G)

1/9-1/11` Introduction/review of basic principles/national income 1M accounting/inflation Handout/online references

1/16-1/18 Inflation/unemployment/economic growth/real vs. nominal values/ 1M inflation-sensitive indicators Handout/online references

1/23-1/25 Classical economics: Historical context/Say’s Law/ Handout/online determination of equilibrium output and employment, prices references and interest rates

1/30-2/1 The Keynesian System: the role of aggregate demand/ Handout/ money, interest and income online references

2/6-2/8 The ISLM Model: monetary and fiscal policy in the ISLM model 20M

2/13-2/15 Aggregate Demand and Supply analysis: interest rates, prices, 21M output, employment/ EXAM I

2/20-2/22 An overview of the financial system/What is money? 2, 3M

2/27-3/1 Understanding real-world interest rates and their behavior 4, 5M

3/6-3/8 The risk and term structure of interest rates/yield curve/ 6M yield to maturity calculations/time-value of money

3/13-3/15 The Federal Reserve System: Structure and function/fractional 12M reserve banking system

3/20-3/22 SPRING BREAK

3/27-3/29 Multiple deposit creation and the money supply process/ 14M Determinants of the money supply

4/3-4/5 Tools of monetary policy/foreign exchange market/EXAM II 15, 17M

4/10-4/12 An exercise in comparative frameworks/capital based macroeconomics/ 1G, the market for loanable funds/the PFF 3G

4/17-4/19 The Hayekian Triangle/sustainable and unsustainable growth/ 3, 4G changes in technology and resource availabilities/changes in intertemporal preferences

4/24-4/26 Austrian Theory of the Trade Cycle/Boom and Bust/Hayek and The 4G Hangover Theory online references

5/1-5/3 FINAL EXAM

FINAL EXAMS . Date and time posted on University website.