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Welcome, Georgia State, At Last!, by Jude Wanniski, 1-29-98.

Cheap Money, The Dark Side of Low Rates - Loan Shortages, by Spencer Reibman, 3-5-02.

Into the Woods, by Spencer Reibman, 3-21-01.

Redrawing Our Picture of Inflation, by Spencer Reibman, 3-12-98.

Is Stag-deflation in Our Future?, 12-27-97.

Previous SSU Lessons:

Fall and Summer '96-'97

Lesson 1: Learning Supply-Side, 11-27-96.
Lesson 2: Where is supply-side economics in the scheme of things?, 12-6-96.
Lesson 3: Taxation and Society, 12-13-96.
Lesson 4Wealth Creation, 12-20-96.
Lesson 5: A Basic Lesson on Money, 1-3-97.
Lesson 6: Basic Tax Question, 1-10-97.
Lesson 7: Success and Failure, 1-17-97.
Lesson 8 More on Gambling/Risktaking, 1-24-97.
Lesson 9: More on Money and Gold, 1-31-97.
Lesson 10:Trade deficits, surpluses, 2-7-97.
Lesson 11: Money and Exchange Rates, 2-14-97.
Lesson 12: Regulation, 2-21-97.
Lesson 13: "A Gold Polaris", 2-26-97.
Lesson 14: CPI & Gold, 3-7-97.
Lesson 15: Capital Gains Tax, 3-14-97.
Lesson 16: 'Monetarism', 3-21-97.
Lesson 17: Mechanics of Growth, 4-4-97.
Lesson 18: Thinking About Markets, 4-11-97.
Lesson 19: Thinking About Markets II, 4-18-97.
Lesson 20: Thoughts on the Public Debt, 4-25-97.
Lesson 21: Reuven Brenner, Guest Lecturer, 5-2-97.
Lesson 22: Bruce Bartlett, Guest Lecturer, 5-10-97.
Lesson 23: Growth, Money and Interest Rates, 5-16-97.
Lesson 24: Several Questions on Gold, 5-23-97.
Lesson 25: The Entrepreneur, 5-30-97.
Lesson 26: The Canadian Entrepreneur, 6-6-97.

SUMMER SESSION

Lesson 1: 'It's Time to Cut Taxes', 6-13-97.
Lesson 2: Who Should Hold Gold?, 6-20-97.
Lesson 3: Reuven Brenner on Economic Growth, 6-27-97.
Lesson 4: Comparative Economics, 7-11-97.
Lesson 5: The Dow Jones Industrial Average at 8000, 7-18-97.
Lesson 6: Questions from Lesson 4, 7-25-97.
Lesson 7: Pegging the Dollar, 8-1-97.
Lesson 8: Three Questions from the Class, 8-8-97.
Lesson 9: Gold as a Constant, 8-15-97.
Lesson 10: Defending a Currency, 8-22-97.
Lesson 11: The World Trade Deficit, 8-29-97.
Lesson 12: End of Summer School Lessons, 9-5-97.

FALL SEMESTER 1997

Lesson 1: 'The General Concept', 9-12-97.
Lesson 2: 'Regarding the Gold Polaris', 9-19-97.
Lesson 3: 'Taxes, Revenue, and the Laffer Curve', 9-26-97.
Lesson 4: 'Say's Law of Markets', 10-3-97.
Lesson 5: 'Questions and Answers', 10-10-97.
Lesson 6: 'Arthur Laffer's Wedge Model', 10-17-97.
Lesson 7: 'The Numeraire', 10-24-97.
Lesson 8: 'Growth, Money, and Interest Rates', 10-31-97.
Lesson 9: 'For a Monetary Anchor',11-7-97.
Lesson 10: 'Two Kinds of Deflation (or Inflation)',11-14-97.
Lesson 11: 'Pegging an Exchange Rate',11-21-97.
Lesson 12: 'von Mises on Deflation',12-5-97.
Lesson 13: 'Gold Standard Mechanisms',12-12-97.
Lesson 14: 'The 1930s: Contraction or Deflation?',12-19-97

Supply-side University Mid-Term Q & A, 1-9-98.

Related Link:

Visit the Georgia State University Website.

Economics 2105 (Macroeconomics)
Fall 2002

Georgia State University
Spencer S. Reibman,   Lecturer

Prerequisites:  Math 1111 College Algebra

Overview

Our goal in studying macroeconomic theory is to understand how the economy works and to learn what if anything can be done to help us to achieve greater prosperity.  Economists are divided about what the best mix of policies to achieve this goal is, and how all of the pieces of the economic puzzle fit together to give us a predictable picture of employment, changes in the price level, interest rates, and the distribution of wealth. 

We’ll start our investigation into the economy by developing the connection between the goods and services that we produce and our factors of production in a world of scarcity.  Then we’ll introduce money (as the unit of account) along with trade theory and tax rates to give us a framework for analyzing economic conditions from what is called the Supply-Side economic school of thought. We will also cover the Keynesian, Monetarist, Austrian and, time permitting, the Rational Expectations view of the world.  At that at the end of the course, you should have gained a broad overview of how the economy operates, and you should have a good idea of how an economist from each school of thought would go about explaining a particular set of economic outcomes.

Required Texts and Cyberspace Readings

Please be advised.  You have a lot of reading to do.  Class lectures will reference Colander, but will mainly be derived from my essays, which are posted on the GSU Talkshop. You are expected to stay current in Wanniski's book and read the essays that I assign. 

Tier 1:

1)      Text: David C. Colander’s Economics, fourth edition. Internet site: http://www.mhhe.com/economics/colander4/

2)      SSR (Reibman) essays and other economics articles found on GSU Talkshop.  Log into  http://www.supplysideinvestor.com/gsuforum to access the assigned essays and other reading materials.  Click on "Summaries of Course Topics" and "Sites to See". (free)

3)       The Way The World Works, How Economies Fail and Succeed, by Jude Wanniski. Available at www.Amazon.com ($13.45)

4)      Wanniski's daily essays: "Memo On The Margin" www.polyconomics.com

5)      Supply side University essays:  http://www.polyconomics.com/univ.htm

6)      Economics for Real People by Gene Callahan. A review is available at http://www.economicsforrealpeople.com/.  Purchase it from www.Amazon.com ($17.00)

Tier 2:

7)      Books by Milton Friedman: 1) Free to Choose: A Personal Statement.  Published 1980. 2) Capitalism and Freedom. Published 1963.  3) Money Mischief. Published 1992.  All available at www.Amazon.com .

8)      Wall Street Journal editorials:  http://www.opinionjournal.com/   (free)

9)      Subscription to Wall Street Journal.

Finding Cyberspace Readings

You can reach this syllabus and the assigned readings posted on the GSU Talkshop via the GSU School website.

Go To:

1)  www.gsu.edu/~wwwsps/people.html. (Click on ‘Reibman’ under faculty)

2)  leads to Supply side University  home page  (Click on Reibman's Econ Course)

3)     leads to GSU Macro Syllabus.

4)     Click on GSU Talkshop

5)     Log into the Talkshop.  Go to Summaries of Course Topics.

The Class Environment

My class is highly interactive.  I call on people to see if they are keeping up and to create a pace of learning.  Sometimes this is intimidating.  Don't let it get to you.  If you don't understand an idea just let me know where you lost the trail.  Oftentimes, I'll answer your question with a question to generate class discussion. 

GSU Cyberspace Chat Room - GSU Talkshop

You can address questions to me and to your fellow students as well in an internet chat room by logging onto the GSU Talkshop which is found on the syllabus page.  Look for the conference that refers to this semester.  Please try to make your questions as specific as possible.  If you are completely lost at any time, try to identify which word, sentence, or concept is throwing you for a loop.  This will help me to help you.

Class Attendance and Tardiness

Since the exam questions will reflect what is introduced in class, your in-class notes and active participation will prove to be vitally important to your success.  If I notice that you are missing class, not doing the reading, or that you are, effectively, out to lunch while you are in class, I may reduce your grade average by up to five grade points. 

Supplementary Materials and Sources 

You are strongly urged to subscribe to the Wall Street Journal.  Low-priced student subscription rates are available.  I will also hand out articles in class and I’ll point you in the direction of some interesting cyberspace websites on macroeconomics via the GSU Talkshop.

 Tests and Grading:

There will be four exams.  The weights increase with each exam.  At my option, your exams may include both an in-class and/or a take-home component.  Active class participation can enhance your final grade if you are on the borderline.  Non-participation, if frequently noticed, can cost you a letter grade.  

Test Weights: Test One =10%, Test Two = 15%, Test Three = 25%, Final = 50%

Grade scale -  100-88  = A,   87-78 = B,  77-69 =  C,  68-60  = D,  59>   F

Georgia State University --  Econ 2105   Fall Session 2002
S. Reibman, Lecturer

Week 1-4

1)Colander:  Ch. #'s 1, 2,3,4 5.
2)GSU Talkshop (under Summaries of Course Topics: Essay on Relative Price Essay.
3)Read Wanniski through Chapter 5
4)Peruse Julian Simon's cybertext discussion of scarcity and natural resources.

Topic:  Relative Prices and Market Equilibrium: Discuss economic method of reasoning, i.e., marginal cost vs. marginal benefit.  Discuss the evolution of markets.  Introduce factors of production and concept of diminishing marginal returns. Build production functions for two goods.  Derive a Production Possibilities Curve.  Show the connection between the slope of the PP Curve and the relative price of each item in the economy.  Derive sister relative-price supply curves in a two-good world.  Derive downward sloping demand curves based on diminishing marginal returns.  Establish equilibrium in two markets.  Show how shortages and surpluses in each market are resolved. Show impact of changes in factors of production on relative-price supply curves via PP Curve.  Show impact of changes in demand on relative prices and equilibrium quantities across markets.

End of Week Four:  First Exam

Week 5-8

1)                  Colander: 22, 23, 24, 29, 30

2)                  GSU Talkshop (Under Summaries of course Topics: Essay on Money.

3)                  GSU Syllabus Page: a) Is Stag-deflation In Our Future,  b) Redrawing Our Picture of Inflation.

4)                  GSU Talkshop:  Under "Sites To See":  Into The Woods

Week Eight: Second Exam 

Week 9 -12

2)                  Wanniski.  Especially Chapters 6 and 7.

3)                  Complete Friedman's Capitalism and Freedom.

Week Twelve: Exam # 3.

Georgia State University --  Econ 2105   Fall Session 2002                   S. Reibman, Lecturer

Week 13- 15

1)                  Colander: 5 (pg. 113-115), 16

2)                 GSU Talkshop:  Trade Theory, and Tariff/Quota Essays

Topic:  Trade Theory.  Show analytics of how trade takes place in the economy.  Develop trade diagrams using relative price supply and demand curves. Show how tariffs and quotas work.    Apply trade theory to domestic policy using tax wedge analysis.                             

1)                  GSU Talkshop: Interest Rate Essay  

Topic:  Interest Rates: Introduce interest rates: Real vs. Nominal.  Use trade diagrams to develop supply curve of savings and the real rate of interest.  Make connection to the yield on capital using “wine vat” example.  Complete Supply-side model by showing how interest rates, tax rates, and changes in monetary policy are linked.

1)                  Colander: 18

2)                  Complete Wanniski

3)                  GSU Talkshop:  Keynesian Theory

4)                  Readings assigned in class.

Topic:  Keynesian Model.Discuss the Great Depression and the development of the Keynesian model in light of the failure of Classical economics to explain the economy’s crash.  Discuss the Smoot-Hawley Tariff Act..  Build the Keynesian model. Introduce money into the Keynesian model.   Show how interest rates affect aggregate demand in Keynesian model.  Show the connection between monetary policy and inflation in the Keynesian model.  Compare with the Supply-side price rule.  Compare with the Classical economics school of thought.

Topic:  Banking System.  Exchange Rates.  Show how money is created via the banking system’s money multiplier.  Discuss the monetization of debt. Discuss the deficit and whether there really is a trade-off between inflation and unemployment as suggested by the Phillips Curve.  Discuss Rational Expectations.  Explore fixed vs. flexible exchange rates including why Bretton Woods broke down.

End of Week 15:  Final Exam