Fall 2007 Course Description

Advanced Policy Economics

Section Title: Macroeconomic Theory & Policy
Instructor(s): James Galbraith
Course: P A 393L - Advanced Policy Economics
(previously Political Economy II)
Unique Number: 65770
Day & Time: Wednesdays, 9:00 AM - 12:00 PM
Room: SRH 3.103
Waitlist Information:For LBJ Students: UT Waitlist Information

Description: This course examines issues in macroeconomic theory and in the design and conduct of macroeconomic policies, including especially public expenditure, taxation, and monetary policy. After a review of core theoretical propositions, the course specifically examines the relationships between macroeconomic performance, technological change, trade, the changing distributions of pay and income, and the question of financial and market instability.

The course is organized around two main themes:

  1. Theoretical conflict: The Keynesian and the classical models, followed by Monetarists, New Classicals, New Keynesians, Post Keynesians and any more recent variants.Each perspective will be explored with a view to its implications for the design of policy and of policy-making institutions, such as the budget process, the central bank, and the international monetary system.
  2. Policy issues: Unemployment and inflation. Savings, investment, budget deficits and surpluses, the benefits and the burdens of debt.. Inequality, technological change, and trade. Globalization, internal and external balance. Bubbles and busts: the stock market and financial instability.

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