ECO202Y5Y Macroeconomic Theory and Policy
Macroeconomic Theory and Policy
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ECO202Y5Y Macroeconomic Theory and Policy
Department of Economics
2. Contact Hours
Synchronous online. Lecture and tutorial recordings will be uploaded to Quercus for students unable to attend the
live sessions.
? Live lectures: Wednesdays, 9:10 – 11:00
? Discussions about lecture related questions and exercises: 13:10-15:00
? Live tutorials: Mondays, 18:10-19:00 followed by Q&A session 19:00-20:00
3. Communications
? If you email us, you must use your University email address and include the course code in the subject line.
? We will do our best to answer your questions within 48 hours.
? Please attend office hours if you prefer prompt responses to your questions.
? Please post questions about the content of lectures and tutorials to the Quercus Discussion Boards.
? Please do not use the Quercus Inbox Application to communicate with us. We do not answer these.
4. Course Objectives and Learning Outcomes:
The goal of this course is to develop a series of models to analyze the macroeconomic performance of a country. We
will learn how to characterize key markets (i.e., the goods, the financial, and the labour markets) in an economy
using mathematical tools. Moreover, we will analyze how the interactions of these markets determine the fluctuations
of an economy in the short and medium run, and economic growth in the long run. Topics, such as the conduct of
monetary, fiscal, and exchange rate policy, inflation and unemployment, exchange rate regime, etc. will be covered.
5. Course Materials:
1. Slides and other course-related materials (e.g., exercises, quizzes, links to lecture and tutorial recordings) will be
posted on Quercus. Please sign up for notification by email when course announcements are posted on Portal, or
check the course website on a daily basis. Failure to do so may result you missing important information about
the course.
6. Course Outline:
Date # Content Chapter
9/8/2021 1 Overview and the goods market Chap 3
9/15/2021 2 The financial markets Chap 4
9/22/2021 3 Central banks and the money supply process Chap 4
9/29/2021 4 IS-LM Chap 5
10/6/2021 5 IS-LM applications: 1. Interest rate targeting 2. Liquidity trap Chap 5
10/13/2021 6 Reading Week, No Class
10/20/2021 7 Term Test 1
10/27/2021 8 The labor market and the AS curve Chap 9
11/3/2021 9 The AS-AD model - The basics Chap 10
11/10/2021 10 The AS-AD model and the demand shocks Chap 10
11/17/2021 11 The AS-AD model and the supply shocks Chap 11
11/24/2021 12 The Phillips Curve Chap 11, 12
12/1/2021 13 Term Test 2
1/12/2022 1 Openness in Goods and financial markets Chap 6
1/19/2022 2 The goods market in an open economy I Chap 7
1/26/2022 3 The goods market in an open economy II Chap 7
2/2/2022 4 A combination of fiscal and exchange rate policy, interest parity condition Chap 8
2/9/2022 5 IS-LM model for an open economy and exchange rate regimes Chap 8
2/16/2022 6 AS-AD model for an open economy Chap 14
2/23/2022 7 Reading Week, No Class
3/2/2022 8 Term Test 3
3/9/2022 9 The facts of economic growth Chap 15
3/16/2022 10 The Solow model Chap 16
3/23/2022 11 The golden rule of saving and human capital Chap 16
3/30/2022 12 The Solow model with exogenous technical progress Chap 17
4/6/2022 13 Decomposition of economic growth: The Solow residual Chap 17
7. Evaluation:
1. Quizzes: 10%, weekly Quercus online quiz (1% each, we will take the top 10 quizzes).
2. Exercises: 15%, we will take top 6 (2.5% each) out of 8 exercises
3. Term Tests: 45%, three (15% each) closed-book Quercus online tests on the following dates from 20:00-21:00.
Detailed information about the test will be provided closer to date.
# Date of the test Coverage: Lectures and tutorials during …
1 October 20, 2021, 20:00-21:00 September 8 – October 18, 2021
2 December 1, 2021, 20:00-21:00 October 27 – November 29, 2021
3 March 2, 2022, 20:00-21:00 January 12 – February 28, 2022
4 Make-up test for the term tests: March 25, 2022, 19:00-21:00 September 8, 2021 – March 23, 2022
Please refer to the “Course Policies” section for requirements for being allowed to write a make-up test.
4. Final Exam: 30%, 2 hours, closed-book Quercus online exam, more information will be available closer to date.
8. Submissions of Course Work:
Quizzes and exercises are always published on Quercus on Wednesday after 15:00 and are due on Sunday by 17:00.
No extensions will be granted for quizzes and late exercises will be subject to a late penalty of 20% per day (including
weekends) of the total marks. Exercises submitted five calendar days beyond the due date will be assigned a grade
of zero. Exercises handed in AFTER the solution has been published on Quercus cannot be marked for credit.
Accommodations due to late registration into the course will NOT be approved.
If you require an extension of time, please request this at least 3 days in advance (i.e., Friday the latest). Asking for
an extension the day before, or the day of, is not a sufficient amount of time.
Computer viruses, crashed hard drives, broken printers, lost or corrupted files, incompatible file formats, faulty
internet, battery problems, and similar mishaps are common issues when using technology, and are not acceptable
grounds for a deadline extension.
It is every student’s responsibility to ensure that their online submission is submitted successfully by the due date.
Accommodations will not be made for unsuccessful submissions due to, but not limited to, i) the system timing out,
ii) submitting the incorrect document(s), iii) poor internet connection / no internet connection etc.
9. Missed Term Tests
Students who miss a test / due date because of circumstances beyond their control (e.g. illness or an accident) can
request that the Department grant them special consideration. The following steps must be completed in order to be
considered for academic accommodation for any missed quiz/test/assignment.
1. Your absence must be declared on ACORN on the day of the missed test / due date, or by the day after, at the
latest.
2. You must notify your professor by e-mail within one week of the missed test / deadline.
3. Complete an online Special Consideration Request within one week of the missed test / due date. The University
is temporarily suspending the need for a doctor’s note or medical certificate for any absence from academic
participation. However, this policy may change at any point during the course.
4. Consult the Office of the Registrar should your absence be lengthy or affect multiple courses.
The request that you submit represents an appeal from you, requesting the opportunity to account for that portion of
your grade in some other manner. If the request is not received, or if the request is deemed unacceptable, you will
receive a grade of zero for the item you missed. If the request is granted – that is, your reason for missing the item is
considered acceptable by the professor – you will be allowed to write a makeup test on Friday, March 25, 2022,
19:00-21:00. However, given the vast amount of material and the difficulty of the makeup test, it is the instructor’s
advice that students should only seek to defer a term test as a last resort. Please note that there is only one make-up
test. No allowance will be made for any possible time conflict and no excuses of any kind will be accepted for
missing the makeup test. Hence, failing to write the makeup test will result in a zero. In case of missing more
than one term tests, all missed tests will be given the grade of the make-up test.
Note that it is your responsibility to ensure that your email account is working. Claims that a Departmental decision
was not received will NOT be considered as a reason for further consideration.
Note that holidays and pre-purchased plane tickets, family plans, your friend’s wedding, lack of preparation, or too
many other tests/assignments are not acceptable excuses for missing a quiz, a test or an item of term work.
Students who cannot complete their online final examination due to illness or other serious causes must file an online
petition within 72 hours of the missed examination. Late petitions will NOT be considered. Students must also record
their absence on ACORN on the day of the missed exam or by the day after at the latest. Upon approval of a deferred
exam request, a non-refundable fee of $70 is required for each examination approved.
10. Regrade Request
Upon requesting a re-grade of your tests, please send an email with ECO202 in the subject to our grading TA, and
c.c. to the instructor. Regrading requests must be received no later than one month from the date of the term test is
returned. Make sure that you attach a complete scan of the test, and justify in the email which question you feel that
additional marks are warranted. Petitions without an explanation backed by theory or justified according to the
marking scheme will NOT be addressed. Please note that by submitting a re-mark request, the student acknowledges
that the entire test will be evaluated, which may raise or lower your mark. Once the test has been re-marked, no
additional changes will be made to the grade.
11. Privacy and Use of Course Materials
This course, including your participation, will be recorded on video and will be available to students in the course
for viewing remotely and after each session. Course videos and materials belong to your instructor, the University,
and/or other sources depending on the specific facts of each situation, and are protected by copyright. Do not
download, copy, or share any course or student materials or videos without the explicit permission of the
instructor. For questions about recording and use of videos in which you appear please contact your instructor.