Advanced Macroeconomics

USF Course Code: ECS 4003

Prerequisite: none; taught in English.

Students: ISA students 

Contact hours: 45

---

I. Course Objective:
The 20-21th Centuries can be described as a period of rapid and sometimes revolutionary developments in several areas of the social world, especially in the economic sphere, which can be traced back to the industrial revolution. Regarding the economic systems, it is possible to differentiate between the changes in ideas (theoretical) from the changes at the practical level (reality). This course will analyze the main economic systems, taking into consideration their historical background and theoretical underpinning, along with how they function in the real world and how they differ/interact with one another. Developing nations and the impact of BRICs countries in the world economy will be also researched.

---

II. Learning Outcomes: 
•    identify the characteristics of capitalism, planned socialism, and market socialism, along with associated theories and ideologies. Then use theories and concepts to analyze and understand current events 
•    assess the performance of the economic systems
•    study and monitor leading examples of each system 
•    learn the major tasks associated with the transition from planned or market socialism to capitalism
•    study the experience of transition, using real world case studies including Russia, China, and central Europe
•    gain a better understanding of capitalism, our own system
•    develop an informed opinion about economic crises, turmoil and bubbles to explain what went wrong and to present what could be done differently  
•    explain how countries develop and relate development theory to the diverse evolution of the so called “rising economies” 

    This course is designed to combine lectures with in-class group exercises and case discussion. Students will learn how to react to situations that multinational firms face in their international operations.  On occasion, videos will be used to augment the lecture and stimulate class discussion.

               The means to attain these objectives include a thorough study of class notes, case analysis, and in-class small group discussions. Material for quizzes and examinations will be from lectures, cases, and group discussions.

---

III. Contents (order of content may be modified):

UNIT 1: UNDERSTANDING COMPARATIVE ECONOMICS
•    Economics the business of life
•    The economic problem: Scarcity and choice
•    Opportunity cost
•    Capital goods and consumer goods
•    The production posibilities frontier
UNIT 2: ECONOMIC SYSTEMS AND THE ROLE OF GOVERNMENT
•    Command economies
•    Laissez faire economies: The free market
•    Mixed systems: Markets and governments
UNIT 3: INTRODUCTION TO MACROECONOMICS
•    Macroeconomics vs microeconomics
•    Development of macroeconomics
•    Objectives and instruments of macroeconomic policy
o    Fiscal policy
o    Monetary policy
o    International trade policy
o    Exchange rate policy
UNIT 4: ECONOMIC INDICATORS
•    GDP
•    Inlfation
•    Interest rates
•    Employment
UNIT 5: ECONOMIC GROWTH, THE FINANCIAL SYSTEM AND BUSINESS CYCLES
•    The financial system and the business cycle
•    Long run economic growth
•    Savings and investment
•    The business cycle
UNIT 6: ALTERNATIVE VIEWS IN MACROECONOMICS
•    Classical and Keynesian tradition
•    Moneratism
•    New classical macroeconomics
o    Rational expectations
•    Supply side economics
•    Behavioural economics

UNIT 7: COMMUNISM AND SOCIALISM
•    Socialism vs capitalism
•    Historical background
•    Marx theory of value
•    Marx theory of surplus
•    Communist society
UNIT 8: BALANCE OF PAYMENTS
•    Balance of payments accounting
•    The J curve effect
•    Balance of payments trends in major countries
UNIT 9: BASIS OF INTERNATIONAL TRADE
•    Theory of absolute advantage
•    Theory of competitive advantage
•    Hecksher-Ohlin theory
•    Imitation gap theory
•    International product life cycle
•    The Solow-Swan neoclassical growth model
UNIT 10: GOVERNANCE ISSUES IN AN INTEGRATING WORLD ECONOMY
•    The international monetary fund
•    The world bank
•    The world trade organization
•    The criticism of international institutions
UNIT 11: DEVELOPMENT AND INTERNATIONAL PRODUCTION
•    Differential experiences of development
•    Theories of development
o    Dependency theory
o    Modernization theory
•    Changing approaches to development

---

IV. Course Material:

Required material:  Principles of Macroeconomics, plus MyEconLab with Pearson e-text, Global Edition 11/E.
Every student will purchase a personal code for access to the online platform from where all the course management (e-text, assignments, reviews, activities, etc.) will take place.

The online learning platform is a mandatory tool to pass this course.
Text book, homework, assignment, tasks are in the platform.
The individual performance appraisal will be carried out through the work every student does in the platform. 

Very important notice: The code is personal and not transferable, once you purchase the code this cannot be neither returned, nor refunded. Unless you are 100% sure you are going to take the Comparative Economics class do not buy it. In case of any doubt contact your host Academic Coordinator.

Please note that Administration Department at ISA Study Center can not take payments by card. 

---

V.I. How to succeed in this course
To successfully complete this course, attendance is essential as enables the necessary participation. Both spontaneous and prepared interaction are categories used in the evaluation.
Due to the variety of topics covered in this course, come prepared. Listening to lectures, watching videos and participating in class activities and discussions is much more effective than reading someone else’s notes or watching a video later. Remember that active and meaningful participation is taken into account as part of the evaluation. Reading prior to the class sessions is essential to keep track of the course due to all the material that will be covered and the pace. 
Becoming an active learner is one of the best ways to finish successfully this course: come always prepared to class: use the syllabus to be aware about will be covered or due in class, do all assignments before class, review before the class and be organized. 

---

VI. Grading scale
Final grades will be calculated according to the following scale:

Matrícula de Honor = 10
Sobresaliente = 9 – 9,9
Notable = 7 – 8,9 
Aprobado = 5 – 6,9
Suspenso = 0 – 4,9
No presentado = Student attended class but did not complete the exams
No asistencia = Student exceeded the maximum number of allowed absences

Please find as a reference the following grading scale conversion. However, it is ultimately the responsibility of the student’s home university or institution to determine the final grade equivalencies. 
Matrícula de Honor = A+                                      
Sobresaliente = A                                                    
Notable = B                                                             
Aprobado =C  
Suspenso = F
No presentado = Incomplete (attended classes but did not take the final exam)            
No Asistencia = Incomplete (enrolled in the course but did not attend class)

Grade dispute: 
The deadline for claiming grades is 30 days from the receipt of the certificate at the university of origin.

---

VII. Course policies

VII.I. Attendance
Class attendance is mandatory and is taken every class day and reflected in the course attendance sheet. 
An 85% attendance rate is required for the successful completion of the course. Perfect attendance will be taken positively into account in the participation section. 
If a student exceeds this limit, 1 point will be taken off of the final grade (Spanish grade). Reaching a 20% of unexcused absences means that the transcript for this subject will show “not attended course”. 
Excused absences: Medical Certificates that will be considered only if issued by a physician (not notes from the family explaining the student’s absence). The certificates must include the exact dates for which a student should be excused for having missed classes. Courses cannot be audited, so attendance is possible only for students enrolled in a specific class. 
Punctuality: Students are expected to arrive on time to class and to return directly to class after class breaks. Arriving 10 minutes late (or more) and/or early class departures are considered unexcused absences and will be taken into account as half an absence. 
 
Attending class is not only the presence in the classroom. The professor will encourage active participation in the course and it will be taken into account as part of the evaluation.  

Auditors: Courses cannot be taken as auditors, thus attendance is possible only for students enrolled in a specific class.

VII.II. Conduct in class
Students who actively participate in classroom activities and who maintain a professional and respectful attitude will be evaluated positively. Students must not eat or use laptops during the class (unless specifically authorized by the teacher).  

VII.III. Late work 
One half point will be taken off (from the learning activities grade) for homework that is submitted late repeatedly. Late assignments will be corrected but will not be graded. 
Missing a class does not release the student from completing the homework assigned or studying the topics covered in class that day.

VII.IV. Make-up Exams
If a student cannot be present for an examination for a valid reason (see V.II.) and approved by the professor and academic direction, a make-up exam will be given.

VII.V. Exam retention
After exams are graded, the teacher will review the examination with the class and collect all exams. The exams will be retained for one semester following the current one, and then they will be destroyed.

VII.VI. Academic Honesty
Students are expected to act in accordance with their university standards of conduct concerning plagiarism and academic dishonesty.

VII.VII. Special accommodations 
Students with special needs who require reasonable accommodations, special assistance or specific aid in this course (either for properly making-up classes, taking exams, etc.) should direct their request to Academic Coordination during the first days of the course.

Teaching staff is required to report any disclosures harassment or violence of any kind.