SMU Classification: Restricted

School of Economics
Academic Year 2023-24
Term 1

ECON252-MACROECONOMICS 2
Instructor Name : Mok Weng Sam
Email : wsmok@smu.edu.sg
Office :
Tel :

1. Course Description
This course is the sequel to Macro 1 and introduces you to the necessary tools and
frameworks(models) for macroeconomic analysis by building upon the concepts learned in
Microeconomics. We will spend some time going through Macroeconomic data and
phenomena and learn how to construct and analyze models used to identify and address the
fundamental issues behind the phenomena. The analysis will be performed
mathematically/numerically as well as using graphical solutions. Additionally, you will learn to
explain the intuitions behind the results.

2. Learning Objectives
We will be learning macroeconomic analysis by building models based on microeconomic
principles. This allows us to draw deeper insights into long run growth, business cycles and
short run relationships which is the main subject of interest in this course. We will also relate
the models to empirical data and phenomena. In summary:
The first 2 sessions will be on long run growth models. The workhorse Malthusian and Solow
growth models will be explored in details.
We then move to Business Cycles. We will learn how to extend the two-period model taught
in Macro 1 with credit market imperfections and construct/analyse a dynamic inter-temporal
macro-economic model.
We will learn how to introduce the flow approach to labor market using search and matching
framework to understand labor market data and policies.
We will then include money into the earlier model and examine the role of monetary policies.
This will be supplemented by the study of both Real Business Cycle model with flexible prices
and wages as well as the New Keynesian sticky price model.

3. Pre-requisite/Co-requisite/Mutually Exclusive Course(s)

Please use the class search function at OASIS > Study > BOSS > BOSS Bidding (Plan &
Bid page > Add to Cart and Perform Course Search) or the course catalogue in OASIS to
check the most updated attributes of this course.

4. Assessment Methods

Assessment Categories Weightage (%)

Class Participation 10
Homework 10

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Mid-term Test 30
Group Project -
Final Exam 50
Total 100

5. Course Assessment Details

Homework will be assigned the same day of the class and needs to be handed in online the
next week before the class through e-learn. The homework is to be scanned in pdf format and
uploaded. Details will be given in the first week of class.

6. Recommended Text and Readings

Macroeconomics, 6th edition, Stephen D Williamson – (Main Text)
Macroeconomics, 3rd edition, Charles Jones – (Supplementary Text)

7. University Policies

Academic Integrity
All acts of academic dishonesty (including, but not limited to, plagiarism, cheating,
fabrication, facilitation of acts of academic dishonesty by others, unauthorized possession of
exam questions, or tampering with the academic work of other students) are serious
offences.

All work (whether oral or written) submitted for purposes of assessment must be the
student’s own work. Penalties for violation of the policy range from zero marks for the
component assessment to expulsion, depending on the nature of the offense.

When in doubt, students should consult the instructors of the course. Details on the SMU
Code of Academic Integrity may be accessed at http://www.smuscd.org/resources.html.

Copyright Notice
Please note that the course materials are meant for personal use only, namely, for the
purposes of teaching, studying and research. You are strictly not permitted to make copies
of or print additional copies or distribute such copies of the course materials or any parts
thereof, for commercial gain or exchange. For the full copyright notice, please visit:
https://smu.sg/Copyright-notice or OASIS > Campus Life & Exchange > Conduct &
Discipline > University Council of Student Conduct.

Accessibility
SMU strives to make learning experiences accessible for all. If students anticipate or
experience physical or academic barriers due to disability, please let the instructor know
immediately. Students are also welcome to contact the university's disability services team if
they have questions or concerns about academic provisions: included@smu.edu.sg.

Please be aware that the accessible tables in the seminar room should remain available for
students who require them. 

Emergency Preparedness for Teaching and Learning (EPTL)

Where there is an emergency that makes it infeasible to have classes on campus, classes
will be conducted online via WebEx, with no disruption to the schedule. To familiarise

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students with the WebEx platform, 2-3 sessions of this course will be conducted online. The
instructor will inform students of which classes, if any, will be conducted as part of this EPTL
initiative.

8. Weekly Lesson Plan

Week Topic Readings

1 14 Aug 23 Chap 7
Economic Growth Williamson

2 21 Aug 23 Chap 8
Economic Growth
Williamson

3 28 Aug 23 Chap 3
Business Cycle Measurement
Williamson

4 4 Sep 23 Consumption and Savings (Credit Market

Chap 9, 10
Imperfections) include review of basic 2 period
Williamson
Model

5 11 Sep 23 Consumption and Savings (Credit Market Chap 10

Imperfections) Williamson

6 18 Sep 23 Labor Market Flows and Search and Matching Chap 6

Approach to Unemployment Williamson

7 25 Sep 23 A Real Intertemporal Macroeconomic model Chap 11

including investment, labor decision involving (partial)
firms, consumers and government Williamson

8 2 Oct 23 Recess Week

9 9 Oct 23 Chap 12
Introducing Money and Long-term Monetary Policy
Williamson

10 16 Oct 23 Chap 13
Business Cycle: Real Business Cycle Model
Williamson

11 23 Oct 23 Chap 14
Business Cycle: New Keynesian Model
Williamson

12 30 Oct 23 Business Cycle Management: Fiscal and Monetary Chap 15

Policy, Philips Curve, IS, MP/LM curve Williamson

13 6 Nov 23 Chap 15
Business Cycle Management/ Summary
Williamson

14 13 Nov 23 Revision Week

15 20 Nov 23 Final Examinations

16 27 Nov 23

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