Macroeconomics studies the behavior of the economy as a whole including the growth of production and consumption and trends in price inflation, interest rates, job creation (and unemployment) and international movements of goods, services and capital flows. Government policies influence the macroeconomy through taxation and spending policies, public sector investment and borrowing, and the central bank’s control of the money supply. Macroeconomics is concerned with both long term trends in output and prices and short term adjustments to external and internal shocks.
The course will study four basic sectors: (1) Real Sector; (2) Fiscal Sector; (3) Monetary Sector, and (4) External Sector. The real sector examines the determination of national accounts aggregates, notably, GDP, employment, inflation, aggregate demand and aggregate supply. The fiscal sector analyses fiscal policy, including taxation, public expenditure, government borrowing and public investment. The monetary sector discusses direct and indirect monetary control instruments and the important role of the central bank. The external sector analyses trade of goods and services, external debt, capital flows, and exchange rate policies.
The approach adopted in this course emphasizes application over theory. We will use concrete examples from Vietnam and other countries to explore core concepts. Students will learn to apply these ideas on their own through worked examples and policy-related assignments.
Session 1: National Income Accounting (NIA) and Balance of Payments (BOP) (I)
Session 2: National Income Accounting (NIA) and Balance of Payments (BOP) (II)
Session 3: Monetary System and Banking
Session 4: Money Growth and Inflation
Session 5: AS-AD Model
Session 6: Monetary Policy and Fiscal Policy and Aggregate Demand
Session 7: Inflation and Unemlpoyment: the Phillips Curve
Session 8: Understanding Exchange Rates
Session 9: The Impossible Trinity
Session 10: Capital Flows and Interest Rate Parity Condition
Session 11: Economic Growth I: Capital Accumulation and Population Growth
Session 12: Economic Growth II: Technology, Empirics and Policy
Performance will be evaluated on the basis of a group presentation, a midterm exam and a final exam, weighed as follows:
- Assignment, policy paper: 30%
- Class participation: 20%
- Final exam: 50%
- N. Gregory Mankiw, Macroeconomics. Worth Publishers, Ninth Edition, 2015. (Mankiw 2015)
- N. Gregory Mankiw (2012), Kinh tế học Vĩ mô, NXB Cengage Learning, Tiếng Việt 2014. [Principles of Macroeconomics, 6th edition, Cengage Learning] (Mankiw 2012V)
- Châu Văn Thành (2017), Những câu chuyện ngắn về kinh tế vĩ mô – Tập 1, NXB ĐHQG TP.HCM. (CVT 2017).
- David A. Moss, A Concise Guide to Macroeconomics – What Managers, Executives, and Students Need to Know. Harvard Business School Press, 2014. Second Edition. (Moss 2014).