This subject considers three topics of macroeconomics that are alive and controversial for policy today. The goal is to take a fairly deep look at them, using the tools of macroeconomic theory that are explained in 14.02. This course is a communications intensive subject, and there is a 20-page paper required; it is worth 25% of the grade. Other requirements for the course are 6 problem sets (15% credit), and three exams, two in-class and one in the final-exam period. Each exam is worth 20% credit and comes after completion of each topic, starting early in the term. Some credit also will be given for class-room participation (e.g., intelligent questions or intelligent answers). Students may work together on the problem sets, but each student must submit his or her own problem-set answers. Problem sets will be posted on the subject's home page and will be due on days marked on the syllabus with an asterisk (*). Late problem sets will
not be accepted. Using "bibles" of past problems will be dysfunctional, as problem sets are the best practice for exams you can find.
The topics are: exchange-rate regimes- their role in the Great Depression and today; economic growth- the roles of capital accumulation, increased education, and technological progress in determining economic growth; and savings- the effect of government and private debt on economic growth.
The text for the course is David Romer, Advanced Macroeconomics, Second Edition, New York: McGraw Hill, 2001. Peter Temin, Lessons from the Great Depression, Cambridge, MA: MIT Press, 1989, paperback, also should be purchased. Additional readings are available from Graphic Arts. The reading list is given by weeks. A few other resources for the paper are listed in the assignments section.
The paper is due in Class #15, a week after the second exam. A rough draft or an outline of the paper is due two weeks earlier, in Class #11. Credit will be given for both the outline and the paper. It is very important to meet the first of these deadlines if you want to meet the second with a decent paper. The first two TAs will help with problem sets and exams. The second two will help with the required paper. You are advised to submit a rough draft well before Class #15, so that a revised version can be submitted on that date. More details about the paper can be found in the assignments section.