Macroeconomics (Fall 2025)
Acknowledgment: This syllabus was co-developed with Maria Teresa Sarmiento-Villena.
- Class Meetings: Tue 9–10:30am, Thu 9–10:30am in BRB
- Instructor: Yumin Hong (contact:ymhong@utexas.edu)
- Office Hours: Tue 10:30–12:00pm in BRB 3.150
Course Summary
This course provides an introduction to the analytical tools used in modern macroeconomics. We will examine the factors that influence economic growth, consumption, investment, and real business cycles. We will also analyze and discuss the challenges of implementing fiscal and monetary policies, connecting the theory learned from lectures with the actual difficulties faced by policymakers.
- Prerequisites: Linear Algebra, Calculus, Microeconomics
- Readings: No particular textbook. Review Lecture Notes Table
- Mode of Instruction: In-person lectures. Regular attendance is expected.
Assignments and Grading
- Participation — 20%
- Group Work Activities / Laboratory / Problem Sets — 20%
- Midterm — 30%
- Final Exam (cumulative) — 30%
Grading Scale:
A: 94–100; A-: 90–93.9
B+: 88–89.9; B: 83–87.9; B-: 80–82.9
C+: 78–79.9; C: 73–77.9; C-: 70–72.9
D+: 68–69.9; D: 63–67.9; D-: 60–63.9
F: < 60
Participation
Attending class is necessary. Full 20% credit earned via one of the following five pathways (choose by Midterm 1, may switch once before Final):
- Path A – Reverse + Regular OHs: One 20-min reverse OH (you pick time & place), plus two regular OH visits.
- Path B – In-class Surveys: Complete 18 surveys.
- Path C – Peer Teaching: Two mini peer-teaching sessions (5–7 min) with Canvas outline.
- Path D – Assessment Co-designer: Submit MC & short-answer items (8+2 total across midterms).
- Path E – Multimedia Explainers: Two plain-language explainers with diagram + 90s audio/video walkthroughs.
Group Activities and Laboratory Projects
- Groups of 4, developing projects throughout the course.
- Pre-exam review classes are peer-led.
- Group membership can change with mutual consent.
Problem Sets
- 3 problem sets before midterm, 1 after.
- Collaborative work allowed, but submissions are individual.
Exams
- Classes before exams used for review.
- Midterm: Week 10
- Final: Week 16
Weekly Schedule with Topics
| Week | Topic | Key Questions | Activities | References |
|---|---|---|---|---|
| 1 | Introduction; Solow model | Why do countries grow at different speeds? | — | Romer, Advanced Macroeconomics; Mankiw |
| 2 | Solow model | Effect of ↑ savings rate on growth? | PS1 | Romer (1990); Barro & Sala-i-Martin (2004) |
| 3 | Endogenous Growth | How does tech progress shape growth? | — | Romer (1990); Barro & Sala-i-Martin |
| 4 | Cross-country Income Differences | Key drivers of differences? | G: Data project (WDI) | Barro & Sala-i-Martin |
| 5 | PIH Model | Do households consume/save more with income changes? | L: HARK Lab | Friedman (1957); Hall (1978); Deaton (1992); Campbell & Mankiw (1989) |
| 6 | Theory vs Data (PIH) | Does evidence corroborate PIH? | G: Meta-analysis | — |
| 7 | Labor Markets & Unemployment | Why smooth participation but volatile unemployment? Market failure? | PS2 | Nobel lecture “Markets with Search Frictions” (2010) |
| 8 | Investment | Why is investment more volatile? | — | Bernanke, Gertler & Gilchrist (1999) |
| 9 | Real Business Cycles | Why boom & busts? | PS3 | Romer |
| 10 | Midterm Review + Midterm | — | G: Peer review | — |
| 11 | RBC & Policy | Should policy stabilize cycles? | L: Dynare/DSGE RBC | Romer |
| 11 | New Keynesian Model | Why sticky prices matter? | PS4 | Galí (2015) |
| 12 | New Keynesian Model | Role of monetary policy? Monetary neutrality? | L: Dynare NK model | Galí |
| 13 | Monetary Policy Challenges | What trade-offs do central bankers face? | — | Galí |
| 14 | — | Thanksgiving | — | — |
| 15 | Fiscal Policy Challenges | Is gov’t spending useful in slumps? | — | Woodford (2011) |
| 16 | Final Review + Exam | — | G: Peer review | — |
Conduct, Integrity, Accessibility
- Devices: Only for class purposes; prohibited during exams.
- Academic Integrity: Collaboration allowed on problem sets (with attribution, incl. AI/chatbots). Exams are closed-book. University integrity policies apply.
- Accessibility: Contact instructor or Student Disability Services for accommodations.
- Grade Appeals: Written appeal within 24h of return; entire assignment may be regraded.