University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 1
(Last revised: January 19)
This problem set (PS) should be submitted at the beginning of class on Wednesday, January 28th, 2015.
The maximum sc
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 1
(Last revised: January 19)
This problem set (PS) should be submitted at the beginning of class on Wednesday, January 28th, 2015.
The maximum sc
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 3
(Last revised: Feb 25th)
PART I of this problem set is due Wednesday, March 4th at the beginning of class. PART II of this
problem set is due M
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 2
ANSWER KEY
(Last revised: February 2nd)
This problem set is due Monday, February 2nd at the beginning of class. The maximum score is 100 points
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 1 - ANSWER KEY
(Last revised: January 19)
This problem set (PS) should be submitted at the beginning of class on Wednesday, January 28th, 2015.
T
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Midterm II Examination ANSWER KEY
March 17th, 2014
The rules of the test: You have 100 minutes to answer the test. The maximum amount
of points is 80. Answer
Lecture 5 - Monetary Policy
January 30th, 2017
Important Dates
Two important dates:
1. Problem set 2 due Monday, Feb. 13th in class
2. Midterm 1 will be Wednesday, Feb 15th from 7-8:40pm (room
assignments TC 342 and TC 343 and will be posted on OWL)
2 per
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 2
(Last revised: February 3rd)
This problem set is due Monday, February 13th at the beginning of class. The maximum score is 100 points.
Be sure
Lecture 12 - Open RBC with Money
April 5th, 2017
Intertemporal Small Open Economy
Big picture lessons:
1. Law of one price links domestic price level, the nominal
exchange rate and foreign prices, therefore, foreign prices (i.e.
monetary policy) can impac
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 3
(Last revised: Mar 8th)
This problem set is due Wednesday, March 22nd at the beginning of class. The maximum score is 100 points.
Be sure to re
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 4
(Last revised: March 30th)
This problem set is due Wednesday, April 5th at the beginning of class. The maximum score is 100 points.
Be sure to
Lecture 6 - Monetary Policy II
February 6th, 2017
Important Dates
Two important dates:
1. Problem set 2 due Monday, Feb. 13th in class
2. Midterm 1 will be Wednesday, Feb. 15th from 7-8:40pm in
rooms:
I
I
TC 342 - last name A-L
TC 343 - last name M-Z
Mone
University of Western Ontario
Department of Economics
Econ 2221B 001/002: Intermediate Macroeconomics
Problem Set 1
(Last revised: January 19)
This problem set (PS) should be submitted at the beginning of class on Monday, January 30th, 2017. The
maximum s
Lecture 11 - Intertemporal Model with
Trade
March 29th, 2017
Lecture Outline
Big picture lessons:
1. Higher price for exports and a lower price for imports is an
improvement in the terms of trade.
2. Dynamics of net exports reflect the savings (borrowing
Lecture 10 - Open Macroeconomics
March 27th, 2017
Open Macroeconomics
We will now move away from Business Cycles and analyze the
open economy, that is:
1. Closed Economy: Y = C + I + G
2. Open Economy: Y = C + I + G + X IM
X +IM
20%
Y
I Canada: X +IM 60%
Lecture 8 - Business Cycles II
March 7th, 2017
Business Cycles
1. Understand the underlying causes of business cycles.
I
I
I
I
I
TFP shocks
Government spending shocks
Monetary Shocks
Demand Shocks
Coordination failures
To understand the underlying sources
Lecture 7 - Business Cycles I
February 27th, 2017
Monetary Policy
Consider potential effects of monetary policy on different
generations:
I
Older Generation: Consumption path financed by existing
wealth, .
I
I
consumption decision: How quickly to consume
University of Western Ontario
Department of Economics
Econ 2221B 001: Intermediate Macroeconomics
Problem Set 2
(Last revised: January 26th)
This problem set is due Monday, February 2nd at the beginning of class. The maximum score is 100 points.
Be sure t
Lecture 9 - Business Cycles II
February 11th, 2015
Business Cycles
We are going to spend some time thinking about the causes of
business cycles, we would like to:
1. Understand what they are and how they are measured in the
data.
2. Understand the underl
Lecture 8 - Business Cycles
February 9th, 2015
Business Cycles
We are going to spend some time thinking about the causes of
business cycles, we would like to:
1. Understand what they are and how they are measured in the
data.
2. Understand the underlying
Feb 27
Older workers get hit by falling asset price: stocks, housing
Younger workers can buy these asset cheap
(depend how long to recover)
Could be the situation that younger workers suffer less, and in the long run they actually
have wealth gain
Mar 13
1. Strategic Complementarities: The marginal benefit/product of
an individual depends on the choices and economic activity of
other individuals.
dot/Jae, l? r N
skrol
2' (2 All) (2N71
(/cfw_aS
,2 lr-oL
1: 21(- N
dbl/dd? ll 1 N
01 wt
32 (2r) can?
Mar 22 New Monetarist
New Monetarist Model
How financial market generate business cycle
Liquidity
-how fast you can convert an asset into consumption
-cash is the fastest
Collateral
-low risk
-retain value over time
Dividing P is converting into units
Hig
WHAT ECONOMISTS DO
Economists have an image of practicality and worldliness not shared by
physicists and poets.
Some economists have earned this image.
myself and many of my colleagues here at Chicago-have not.
Others-
I'm not sure
whether you will take t
Swedens deflated economy
Sub-zero conditions
Interest rates are back to crisis lows
Jul 12th 2014 | From the print edition
ONLY a few years ago the Sveriges Riksbank was the envy of the central-banking world. Swedens
economy, which it oversees, grew three
Lecture 11 - Business Cycles IV
February 25th, 2015
Business Cycles - Keynesian Models
The RBC, Money Surprise and Segmented Markets models have
very limited roles for governments, especially for scal policy.
Essentially, given the frictions, or lack ther
Lecture 7 - Monetary Policy III
February 2, 2015
Important Dates
One important date:
1. Midterm 1 will be Wednesday, Feb. 4th from 7-9pm in rooms:
HSB 11 - last name A-F
HSB 236 - last name G-Z
Motivating Monetary Policy
Recall, in all of the models we ha
Lecture 10 - Business Cycles III
February 23rd, 2015
Business Cycles
1. Understand the underlying causes of business cycles.
TFP shocks
Government spending shocks
Monetary Shocks
Demand Shocks
Coordination failures
To understand the underlying sources, we
Lecture 6 - Monetary Policy II
January 28, 2015
Important Dates
Three important dates:
1. Problem set 2 due Monday, Feb. 2nd in class (short
assignment to prep for midterm)
2. Midterm 1 will be Wednesday, Feb. 4th from 7-9pm in rooms:
HSB 11 - last name A