Home Page for Econ 604
Course Section Two (Last Five Weeks) on
Macroeconomic Coordination

Home Page Last Updated: 29 October 2002
Latest Section Offering: Fall 2002 (Last Five Weeks)

Meeting Time and Place:

Regular Class MW, 11-1, Heady 162;

Discussion Section F 11-12, Heady 162.

Section Two Syllabus (Online)

Section Two Instructor:

Professor Leigh Tesfatsion

Department of Economics/Heady 375

Iowa State University

Ames, Iowa 50011-1070

(515) 294-0138

http://www.econ.iastate.edu/tesfatsi/

tesfatsi@iastate.edu

Instructor Office/Office Hours:

Heady 375, TR 1:10-3:00 pm, and by appointment

Teaching Assistant Office/Office Hours:

Ms. Xue (Sherry) Qiao

Office: Heady 83

Office Hours: MWF 1-2

Phone: 4-6846

sherryqi@iastate.edu

Section Two Objectives

Achieving an accurate understanding of the way in which key macro variables (output, employment, price levels, capital stocks,...) move together over time in decentralized market economies is a fundamental problem of macroeconomic theory. At present there is no consensus regarding which theory best explains this movement. At one end of the spectrum, new classical macroeconomists work within frameworks in which the macroeconomy is assumed to be in a continual state of equilibrium characterized by strong efficiency properties. At the other end of the spectrum, post-Walrasian macroeconomists argue that macroeconomies regularly exhibit coordination failure (various degrees of inefficiency) and even lengthy periods of disequilibrium. Given these fundamental differences, it is not surprising to see major disagreements among macroeconomists concerning the extent to which government policy makers can and ought to attempt to influence macroeconomic outcomes.

This section of this year's team-taught Econ 604 will explore alternative perspectives on macroeconomic coordination in an attempt to clarify why macroeconomists exhibit such strong, passionate, and persistent disagreement on this issue.

Section Two Topics:

1. Introduction
2. Walrasian Equilibrium: A Benchmark of Coordination Success?
3. Expectations and Time Inconsistency Issues
4. Post-Walrasian Macroeconomics
5. Towards a Constructive Theory of Macro Coordination

Prerequisites: Economics 602, Section One of 604

Grading: Grades for this section of Econ 604 will be determined on the basis of take-home and in-class exercises as well as a final exam (Monday, December 16, 9:45-11:45, Heady 162). Class discussion will count for extra credit in case of a borderline grade.

Reading Assignments: There is no required textbook for this section of Econ 604. Required readings will be assigned from a variety of sources (journal articles, books, lecture notes, ...). All required readings will be placed on closed reserve in the Econ/Soc Reading Room (Third Floor, Heady Hall), together with a selection of recommended readings. Please see the section two syllabus for a detailed listing of readings, assignments, and in-class discussion questions for this section of Econ 604.

Disability Statement: If you have a disability and require accommodations for this course, please contact the instructor early in the semester so that your learning needs can be appropriately met. You will need to provide documentation of your disability to the Disability Resources (DR) office, located on the main floor of the Student Services Building, Room 1076, 515-294-6624.

Copyright © 2002 Leigh Tesfatsion. All Rights Reserved.