Since relatively few people can be expected to stumble upon an M.I.T. course syllabus of Olivier Blanchard in Evsey Domar’s papers, I figure it is part of the value-added of Economics in the Rear-view Mirror to provide a transcription of such hidden treasure. Earlier Blanchard’s graduate M.I.T. course syllabus for 1997 was posted.
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Intermediate Macro Theory
14.06
O.J. Blanchard
Fall 1984
This course is a continuation and extension of 14.02. It is divided in two parts of approximately equal length The first builds on the aggregate demand and aggregate supply apparatus developed in 14.02. The second examines three topics of current interest.
There will be a midterm exam, covering the first part of the course, and counting for half of the course grade. Students will then have the option of taking a final exam or writing a course paper on one of the three topics covered in the second part of the course.
Background Readings
Dornbusch and Fischer, Macroeconomics, 3rded. (D.F.)
Economic Report of the President, February 1984.
R.J. Gordon, “Postwar Macroeconomics: The Evolution of Events and Ideas”, Chap. 2, in the American Economy in Transition, Feldstein, ed.
As the course starts, you may want to review Chapters 1 to 5 in D.F.
Part I. Aggregate demand and aggregate supply
- The ISLM in the closed economy
D.F. Chapters 6 to 9
F. Modigliani, “Monetary Policy and Consumption”, (in xerox packet at Graphic Arts). pp. 12-46.
L. Summers, “Taxation and Corporate Investment: A q-theory approach”, Brookings Papers (BPEA), 1981, 68-119.
J. Tobin, “Monetary Policies and the Economy: The Transmission Mechanism”, Southern Economic Journal, January 1978.
- The ISLM in the open economy
D.F. Chapters 18, 19-1.
Economic Report of the President, 1984, chapter 2.
R. Dornbusch and S. Fischer, “The Open Economy, Implications for Monetary and Fiscal Policies”, mimeo, MIT 1984.
R. Dornbusch, Open Economy Macroeconomics, chap. 3 (optional)
- Aggregate demand aggregate supply
D.F. Chapters 11, 12, 13, 14, 19-2.
R. Lucas, “Understanding Business Cycles”, in “Studies in the Business Cycle Theory”, 215-239.
J. Tobin, “How Dead is Keynes?”, Economic Inquiry, Oct. 1977.
J. Tobin, “The Wage-Price Mechanism”, in The Econometrics of Price Determination”, Eckstein ed., 1972, 5-15.
Part 2. Three topics
- Real wages and unemployment in Europe
E. Malinvaud, “The Theory of Unemployment Reconsidered”, Wiley 1977.
R. Dornbusch et al., “Macroeconomic Prospects and Policies for the European Community”, CEPS Paper 1, 1983.
J. Sachs, “Wages, Profits and Macroeconomic Adjustment: A Comparative Study”, BPEA 1979-2, 269-332.
J. Sachs, “Real Wages and Unemployment in the OECD Countries”, BPEA 1983-1, 255-289.
- The Volcker disinflation
W. Poole, “The Theory of Monetary Policy under Uncertainty”, in Readings, W.L Smith and R. L. Teigen, 1974, 360-369.
O. Eckstein, “Disinflation”, DRI Economic Studies 114, October 1983.
W. Buiter and M. Miller, “Changing the Rules: Economic Consequences of the Thatcher Regime; BPEA 1983, 305-365 (optional).
T. Sargent, “the Ends of Four Big Inflations”, on Reserve (optional).
B. Friedman, “Lessons from the 1979-82 Monetary Policy Experiment”, American Economic Review P&P, May 1984, 382-87.
M. Friedman, “Lessons from the 1979-82 Monetary Policy Experiment”, American Economic Review P&P, May 1984, 397-400 (Authors not related).
R. Gordon, “The Conduct of Domestic Monetary Policy”, on Reserve, pp. 1-33 only (optional)
- U. S. fiscal deficits and the world economy
D.F. Chapter 15
“Setting National Priorities: The 1984 Budget”, J. Pechman ed., Chapters 2, 8.
M. Feldstein, “Budget Deficits, Economic Activity and Net Capital Formation”, Testimony to Congress, 1983.
R. Dornbusch, “The Overvalued Dollar”, mimeo, MIT 1984.
O. Blanchard and R. Dornbusch, “U.S. Deficits, Europe and the Dollar”, mimeo MIT 1983 (optional).
O. Blanchard and L. Summers, “High Real Interest Rates”, on Reserve (optional).
Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Evsey D. Domar Papers, Box 15, Folder “Macroeconomics. Lecture Notes, Exams, Paper: ‘Stability Without Planning? The American Experience’”.
Image Source:Olivier Blanchard’s MIT homepage, captured June 2, 2001 by Wayback Machine.