ECON 7800 — Macroeconomics
Masters-Level — Fall 2023 — Hong Kong Baptist University
Course Information
Time
Monday 6:30–9:20 pm (DLB 905, Section 1)
Wednesday 2:30–5:20 pm (WLB 917, Section 2)
Office
WLB 519 — Office hours Monday 1:30–4:30 pm and by appointment
Description
An introduction to macroeconomics — the study of aggregate economic outcomes and general equilibrium. We focus on fluctuations in consumption, investment, output, unemployment, and inflation, with selective coverage of long-run topics. Early lectures build measurement and time-series tools; subsequent blocks cover static production, overlapping generations and money, business cycle models (RBC and extensions), financial frictions, liquidity and monetary policy, heterogeneous-agent models, and search-and-matching unemployment. Computation in Julia, with optional Python pointers.
Learning Outcomes
- Interpret key macro indicators (GDP, inflation, unemployment) and explain cyclical co-movement and trend/cycle decomposition.
- Apply basic time-series techniques (filters, Markov chains, AR(1)/ARMA) and analyze simple dynamic systems.
- Formulate, solve, and simulate canonical macroeconomic models (static production; OLG with money; RBC/DSGE with extensions).
- Explain how financial frictions and liquidity shape investment, pricing, and policy transmission; discuss conditions under which monetary policy affects real activity.
- Analyze heterogeneous-agent environments (precautionary savings; borrowing constraints) and the macro implications of wealth distribution.
- Use search-and-matching models to study unemployment dynamics and policy trade-offs.
- Implement computational solutions and simulations in Julia with reproducible code, and communicate results clearly in writing and presentation.
Assessment
35%
Problem sets
15%
Referee report
10%
Attendance / Participation
15%
Midterm exam
25%
Final exam
Course Outline
Weeks 1–2
Introduction and toolsMeasurement, time-series methods, dynamic systems
Week 3
Static production and imperfect competition
Week 4
Overlapping generations and money
Weeks 5–7
Business-cycle theoryRBC and extensions; calibration; financial accelerator
Week 8
Midterm Exam
Week 9
Financial frictions
Week 10
Liquidity and monetary policy
Week 11
Heterogeneous agents
Week 12
UnemploymentSearch-and-matching; Mortensen–Pissarides
Texts and References
- WilliamsonMacroeconomics, 6th ed. — intuitive coverage; recommended.
- Ljungqvist & SargentRecursive Macroeconomic Theory — technical reference.
- HamiltonTime Series Analysis — time-series reference.
- AzariadisIntertemporal Macroeconomics — dynamic systems.
- McCandlessThe ABCs of RBCs — practical RBC solution methods.
- McCandless & WallaceIntroduction to Dynamic Macroeconomic Theory — overlapping generations approach.
- Petrosky-Nadeau & WasmerLabor, Credit, and Goods Markets — search and unemployment; recommended.