ECOM181 - Macroeconomics for Policy - September 2022/23
Topic outline
-
-
-
Here I have zipped up the readings from the OneDrive directory that many/all of you were unable to access from your work computers.
92.0 MB
-
Live Lecture
- Microsoft Teams Lecture Link (Friday 13:00, bi-weekly, starting 9 September)
- Microsoft Teams Class Link (Friday 13:00, bi-weekly, 16th September - 9th December)
- Microsoft Teams Class Link (Friday 13:00, bi-weekly, 6th
January - 20th January)
Microsoft Teams Office hours Link (Friday 14:00, bi-weekly, starting 9 September, directly after the live lecture)Office hours (Martin)
Microsoft Teams Office hours Link (Friday 16:00, bi-weekly, 16th September - 9th December)Microsoft Teams Office hours Link (Friday 16:00, bi-weekly, 6th January - 20th January) - Microsoft Teams Lecture Link (Friday 13:00, bi-weekly, starting 9 September)
-
We will look at some stylized facts on the UK economy.
The structure will be:- recorded videos with slides,
- live session,
- TA session.
- Microsoft Teams Lecture Link (Friday 13:00, bi-weekly, starting 9 September)
- watch recorded videos
- read key reading for discussion: Mankiw, N, Gregory. 2006. "The Macroeconomist as Scientist and Engineer." Journal
of Economic Perspectives, 20 (4): 29-46.
- Jones, Charles I., 2016. “The facts of economic growth”, Handbook of Macroeconomics, Vol. 2: 3-69 (Focus here on the topics and issues that relate to what was discussed in the recorded videos)
TA sessions- You can try setting up R on your machine, please watch this --> o
-
We will study the basic Solow growth model and Talk about growth accounting and a productivity growth slowdown in the context of the UK.
The structure will be:- recorded videos with slides (Solow growth model),
- live session (Productivity growth slowdown and growth accounting based on Solow framework)
- TA session (Practical application of growth accounting).
- watch recorded videos
- read key reading for discussion: Growth accounting: multi-factor productivity estimates, UK: October to December 2019, Statistical bulletin ONS
- Jones, Charles I., 2016. Introduction to Economic Growth, Chapters 2 & 3
- Fernald, John, 2015. “The recent rise and fall of rapid productivity growth”, FRBSF Economic Letter
-
-
-
The Excel spreadsheet has been posted. We going to go over with Martin in the session, so don't worry if you have no time to play with this. This is just to give you the dataset you need on Friday.
-
We will study the Solow model in continuous and an extension with endogenous growth (AK model). We will further study and discuss differences in productivity and its determinants - both at the firm level and at the country level.
The structure will be:- recorded videos with slides (Solow growth model in continuous time and endogenous growth AK model),
- live session (Productivity differences and determinants of productivity )
- TA session (Practice quiz questions and practical application of growth accounting).
- In the video "Video_2_SolowModelContinuousTime" it is implicitly assumed from minute 7:20 onward that depreciation, delta, is equal to zero. This makes the calculations on that slide easier. As an exercise, you can try to do the same derivations with non-zero delta included.
- In the video "Video_4_AK Model: Part 2" there is a mistake in the equations written from minute 6:13 - 7:21. The term (delta + n) should not be multiplied with k in these 3 equations (since we have divided the whole equation by k). The expression on the next slide, written down at minute 8:08, is correct, and so is everything that follows that.
- watch recorded videos
- read key readings for discussion:
- Syverson, Chad. 2011. "What Determines Productivity?" Journal of Economic Literature, 49 (2): 326-65. (Exluding Sections 2.3, 3.1, 3.6, 4 and 5; these are also interesting but designated as optional additional reading)
Additional core reading- Jones, Charles I., 2016. Introduction to Economic Growth, Chapter 9 ( Or Chapter 8 in the older first edition)
-
-
-
The Excel spreadsheet has been posted. We going to go over with Martin in the session, so don't worry if you have no time to play with this. This is just to give you the dataset you need on Friday.The Sample Quiz Questions for TA 3 session has been posted, here.
-
We will study endogenous growth and innovation. In the videos, two further endogenous growth models are discussed. In the live lecture, we will focus on what policy should be implemented to encourage innovation and enhance economic growth.
To prepare for Live Lecture
- watch recorded videos
- read key readings for discussion: Bloom, Nick, van Reenen, John, and Williams, Heidi, 2019. "A Toolkit of Policies to Promote Innovation", Journal of Economic Perspectives, Vol. 33(3): 163-84
Additional core reading
● Gaggl, Paul, and Wright, Greg C., 2017. "A Short-Run View of What Computers Do: Evidence from a UK Tax Incentive", American Economic Journal: Applied Economics, Vol. 9(3): 262-94 (Focus on the Intorduction and on Sections I and IV (A))
● Jones, Charles I., 2016. Introduction to Economic Growth, Chapter 5 (Sections 5.1, 5.2, 5.3)
-
-
-
There was a question in the live lecture about what fraction of R&D in the UK and other countries is private and what fraction public R&D spending.
Under this link there is an interesting picture that shows this decomposition for different countries
-
We will use the Excel spreadsheet from Seminar 3 to expand on the model.
-
This topic focuses on the operational details of monetary policy. How exactly can the Bank of England influence the short term interest rate? How can a better operational framework reduce over-night interest rate volatility? And how did this framework have to change during times of unconventional monetary policy?
To prepare for Live Lecture
- watch recorded videos
- read key reading for discussion: Osborne, Matthew, 2016. Monetary policy and volatility in the sterling money market, BoE WP #588 (Do not focus on technical econometric details, but rather on the the research question, results and intepretations )
Additional core reading
● The Bank of England’s Sterling Monetary Framework (The Red Book), June 2015
● Keister, Todd, 2012. Corridors and floors in monetary policy, Liberty Street Economics blog
-
This topic focuses on the transmission of monetary policy to the real economy and to inflation. The videos introduce the widely used 3 equation New Keynesian model. We will first consider monetary policy transmission through the lens of that model. But based on recent empirical evidence, we will also consider monetary policy transmission from a different perspective in the live lecture.
To prepare for Live Lecture
- watch recorded videos
- read key readings for discussion. Rather than scientific papers, this week these key readings are two articles about scientific papers that allow you to get the main message without having to struggle through the technical details. These articles are:
- Economics in central banking: Greg Kaplan, Benjamin Moll and Gianluca Violante, https://www.centralbanking.com/awards/3970686/economics-in-central-banking-greg-kaplan-benjamin-moll-and-gianluca-violante
Additional core reading
● Bernanke, Ben and Gertler, Mark, 2001. “Should central banks respond to movements in asset prices?”, American Economic Review, Vol. 91(2): 253-257
● Gali, Jordi, 2015. Monetary policy, inflation and the business cycle, Chapter 3 (note, Gali has excellent lecture slides that contain the main elements of his book’s chapters)
-
-
-
The Sample Questions for TA 6 session has been posted, here - don't worry if you have no time to attempt the questions in advance.
-
This topic focuses on consumption and on how consumption changes due to anticipated and unanticipated changes in income. A particular focus is put on how consumption cahnges when taxes are changed. The videos focus on theory whereas we will focus more on empirics in the live lecture.
To prepare for Live Lecture
- watch recorded videos
- read: Jappelli, Tullio and Pistaferri, Luigi, 2010. “The consumption response to income changes”, Annual Review of Economics, Vol. 2: 479-506
Additional core reading
● Johnson, David, S., Parker, Jonathan A, and Souleles, Nicholas S., 2006. "Household Expenditure and the Income Tax Rebates of 2001", American Economic Review, 96(5): 1589-1610
● Romer, David, 1996. Advanced Macroeconomics, Chapter 8 (“Consumption”), sections 8.1-8.4
-
-
-
The Sample Questions for TA 7 session has been posted, here - don't worry if you have no time to attempt the questions in advance.
-
This topic focuses on investment and on how tax incentives may influence investment. We also consider whether liquidity constraints may again play a role.
To prepare for Live Lecture
- watch recorded videos
- read: Maffini, Giorgia, Xing, Jing, Devereux, Michael P., 2019. “The impact of investment incentives: Evidence from UK corporation tax returns”, American Economic Journal: Economic Policy, Vol. 11(3): 361-389
Additional core reading
● Zwick, Eric and Mahon, James, 2017. “Tax policy and heterogeneous investment behavior”, American Economic Review, Vol. 107(1): 217-248
● Romer, David (1996) Advanced Macroeconomics, Chapter 9 (the “Investment Chapter”), sections 9.1-9.3
-
-
The Sample Questions for TA 8 session has been posted, here - don't worry if you have no time to attempt the questions in advance.
-
This topic focuses on Government debt. If the government implements fiscal stimulus, this typically leads to a lower fiscal surplus and increased government debt. We discuss different theories about the importance and rule of government debt and how government debt may relate to inflation.
To prepare for the Live Lecture
- watch recorded videos
- read key readings for discussion:
- Ryan Banerjee, Valerie Boctor, Aaron Mehrotra, Fabrizio Zampolli, 2022, Fiscal deficits and inflation risks: the role of fiscal and monetary policy regimes, SUERF Policy Brief, No 445
Additional core reading
● John Cochrane, 2022, The Fiscal Theory of Inflation, The Grumpy Economist.
● Jordi Gali, 2020, Helicopter money: The time is now, voxEU
● Romer, David 1996. Advanced Macroeconomics, Chapter 13 (Budget Deficits and Fiscal Policy), sections 13.1-13.3
-
-
-
The Sample Questions for TA 9 session has been posted, here - don't worry if you have no time to attempt the questions in advance.
-
-
-
ASSESSMENT 2: PROJECT
Assessment Weighting: 60%
DESCRIPTION:
The final project will be done in groups and consists of exploring the current macroeconomic setting of a chosen country and making recommendations for monetary, fiscal, or industrial policy. Your analysis and recommendations will be presented live (end July) in slide form (PPT or Beamer) and submitted in a more formal written report thereafter (due by 5 August), incorporating feedback from the presentation. Groups should comprise 3-4 students.
-
This section is for Learners to confirm their group allocation
Instructions:
Since the system does not allow allocation on behalf of your chosen group, a nominated Leader of each group should:
- firstly, select from any of the available slots below >>> and SAVE your choice,
- then notify members of your group which of the slots you have chosen
- the group member should then proceed by following steps above but using the slot allocated for your group
Please be reminded that allocation is limited to 4 members only
Deadline Thursday 17th November 2022
Kindly email emapstudentsupport@qmul.ac.uk if you have any issues. -
The submission of the report is required by ONE nominated member of each group. All groups submit here and then they will be randomly allocated to Tatsuro or Sarah.
-
FINAL Report Submission required for ECOM181 - Macroeconomics for Policy
The submission of the report is required by ONE nominated member of each group
-
-