Course Syllabus

Economics 553 - Current Trends in Monetary Economics

Spring 1997

Professor Barry Falk
Office: 271 Heady Hall
Phone: 294-5875
Email: bfalk@iastate.edu
Office Hours: MW 11:00-11:45 a.m. , TTh 2:15-3:00 p.m. , and by appointment

Class Home Page: http://www.econ.iastate.edu/classes/econ553/falk/

Course Description: The objective of this course is to introduce students via selected examples to the empirical literature in macroeconomics, particularly as it pertains to current issues in monetary and financial economics. In other words, the course will illustrate how macro/monetary/financial economic theory and econometric theory are combined in applied economic research. Issues likely to be considered include 1) the efficiency of asset markets, 2) the dynamic effects of money supply changes on macroeconomic activity, and, time permitting, 3) the Ricardian equivalence hypothesis. Each issue will be introduced by a discussion of the relevant economic theory and its implications. Then we will look at how economic data have been used to evaluate the applicability of the theory. The course will begin with an introduction to the basics of statitstical time series models.

The course is primarily aimed at graduate students enrolled in the Masters degree program in Economics, although other qualified students are welcome to enroll. Minimum qualifications include the economic theory and econometrics courses required for an undergraduate major in Economics at Iowa State (or their equivalents).

Outside Readings: There is not a textbook for this course. The course will rely primarily on articles published in the professional journals, which will be made available at the reserve desk in the Economics/Sociology Reading Room on the third floor of Heady Hall. The list of required, recommended, and other readings will be developed as the course proceeds. Students may find Applied Econometric Time Series (Wiley 1995) by Walter Enders to be a useful supplement and copies are available in the Memorial Union bookstore.

Grade Determination: The course grade will be based upon a number (probably close to four) of problem sets and a term paper that will be due the last day of class. The problem sets and term paper will involve students in problem solving, creative thinking, the critical analysis of professional papers and hands-on applications of econometric methods.