Macroeconomic Policy (Econ 413/513)

In fall 2021, South Dakota State University will offer Macroeconomic Policy (Econ 413/513). The course will meet Tuesdays and Thursdays from 3:30 to 4:45 pm in Crothers Engineering Hall 215.

The objective of the course is to understand and analyze government policies designed to shape macroeconomic activity—in the short run and the long run. These policies include fiscal policy, monetary policy, financial-stability policy, foreign-exchange policy, trade policy, tax policy, and growth policy. In Econ 413/513, we study these policies and their macroeconomic consequences in theory, in practice, and in the contexts of several U.S. macroeconomic experiences including, for example, the great inflation in the 1970s, the productivity slowdowns in and around the 1980s and the early 2000s, the international financial crisis in and around 2008, and the pandemic in 2020.

If important issues surrounding macroeconomic performance and policy interest you, and if you enjoy a seminar-styled course format that welcomes open, informed discussion and debate, consider adding Econ 413/513 to your fall-2021 course schedule. The prerequisite for the course is Principles of Macroeconomics (Econ 202). The course is open to undergraduate students (Econ 413) and graduate students (Econ 513), allowing students from diverse intellectual experiences to share and refine their ideas and learn from the contributions of others.

If you need help registering for this course, please contact J. Santos at

Course Outline (This outline is a summer work in progress.)

The textbook for the course is the following:

Bénassy-Quéré, Agnès, Benoît Cœuré, Pierre Jacquet, and Jean Pisani-Ferry. 2019. Economic Policy: Theory and Practice. Oxford: Oxford University Press. (Hereafter, EP 2019.)

ConceptsEP 2019, Chapter 1
IssuesEP 2019, Chapter 2
InterdependenceEP 2019, Chapter 3
Fiscal policyEP 2019, Chapter 4

Easterly, William. 2013. “The Role of Growth Slowdowns and Forecast Errors in Public Debt Crises.” In Fiscal Policy After the Crisis, edited by Alberto Alesina and Fancesco Giavazzi, 151-173. Chicago: University of Chicago Press.

Romer, Christina D. and David H. Romer. 2010. “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks.” American Economic Review 100 (June): 763-801.
Monetary policyEP 2019, Chapter 5

“Hot Stuff” 2021. The Economist, May 29, 2021.

Orphanides, Athanasios. 2003. “The Quest for Prosperity without Inflation.” Journal of Monetary Economics 50 (3): 633-663.
Financial stability policyEP 2019, Chapter 6
Foreign-exchange policyEP 2019, Chapter 7
Tax policyEP 2019, Chapter 8

Romer, Christina D. and David H. Romer. 2014. “The Incentive Effects of Marginal Tax Rates: Evidence from the Interwar Period.” American Economic Journal: Economic Policy 6 (3): 242-281.
Growth PolicyEP 2019, Chapter 9