Course Information
Course title
 Macroeconomics (2) 
Semester
 112-2 
Designated for
 DEPARTMENT OF ECONOMICS  
Instructor
 CHEUK SHING LEUNG 
Curriculum Number
 ECON2021 
Curriculum Identity Number
 303E20022 
Class
 03 
Credits
 3.0 
Full/Half
Yr.
 Full 
Required/
Elective
 Required 
Time
 Thursday 2,3,4(9:10~12:10) 
Remarks
 The upper limit of the number of students: 100. 
  
Course introduction video
 
Table of Core Capabilities and Curriculum Planning
 Table of Core Capabilities and Curriculum Planning
Course Syllabus
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Course Description

This course provides an in-depth exploration of macroeconomic principles, focusing on inflation, interest rates, taxation, inequality, welfare, real estate economics, and dynamic optimization. Through a combination of lectures, discussions, and practical exercises, students will gain a comprehensive understanding of how macroeconomic factors influence the economy at large. This course is designed for students with a foundational knowledge of economics who wish to delve deeper into macroeconomic theory and its applications. 

Course Objective
 - Understand the mechanisms and implications of inflation and interest rates.
- Analyze the principles of optimal taxation and its impact on the economy.
- Examine the causes and consequences of economic inequality and the role of welfare.
- Explore the dynamics of real estate markets and their significance in the economy.
- Master the fundamentals of dynamic optimization and its applications in economic modeling. 
Course Requirement
 Basic Calculus 
Student Workload (Expected weekly study hours before and/or after class)
  
Office Hours
  
Designated reading
  
References
  
Grading
    
Progress
Week
Date
Topic
Week 1
 2/22  Course Introduction and Syllabus Overview

- Macroeconomics and Collective Behaviour 
Week 2
 2/29  Inflation

- Measuring Inflation: Consumer Price Index (CPI) and Producer Price Index (PPI)
- Causes and Consequences of Inflation
- Hyperinflation and Deflation: Understanding extreme economic conditions 
Week 3
 3/7  Interest Rates

- Borrowing Costs and Savings Incentives
- Inflation Control 
Week 4
 3/14  Real Estate Economics

- Factors influencing demand and supply
- The impact of interest rates on real estate 
Week 5
 3/21  Inequality

- Gini Coefficient and Lorenz Curve 
Week 6
 3/28  The first mid-term exam 
Week 7
   Pareto Distribution
Thomas Piketty's arguments on the cause of wealth inequality 
Week 8
   Welfare Economics

- Social welfare function 
Week 9
   Optimal linear income taxation I 
Week 10
   Optimal linear income taxation II 
Week 11
   Theory of Progressive Income Taxation I 
Week 12
   Theory of Progressive Income Taxation II 
Week 13
   Dynamic Optimization I

- Fundamental concepts and techniques in dynamic optimization 
Week 14
   Dynamic Optimization II

- Introduction to solving basic dynamic optimization problems 
Week 15
   Final Exam