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Principles of Economics

Principles of Economics with John Taylor

This course is designed as an introduction to the study of economics. Participants will be exposed to the economic way of thinking and learn about the functioning of a modern market economy. The early part of the course focuses on microeconomic analysis including the behavior of consumers and firms. We analyze markets for goods and services and policy choices that affect these markets. The later part of the course moves on to macroeconomic concepts such as national production, employment, inflation and interest rates. We explore models that determine long-run growth and short-term fluctuations in national economies. We then discuss the role of government regulation, monetary policy, and fiscal policy.

Course Outline

Part 1

The Basic Core

Getting Started
Observing and Explaining the Economy
The Supply and Demand Model
Using the Supply and Demand Model

The Competitive Equilibrium Model

Deriving Demand
Deriving Supply
Market Equilibrium and Efficiency

Firms and Industries Changing Over Time

Cost and Changes at Firms Over Time
The Rise and Fall of Industries

Deviations from Competition

Monopoly and Market Power
Between Monopoly and Competition
Antitrust Policy and Regulation

Labor Markets

The Labor Supply and Demand Model
Labor Model Cont. – Min. Wage and Discrimination

Key Economic Policy Issues

Taxes, Transfers and Income Distribution
Public Goods and Externalities
Government Failure and Success

Financial and Capital Markets

Markets for Physical Capital
Financial Markets: Risk and Return

Part 2

Macro Facts and Measures

Getting Started with Macroeconomic Ideas
Measuring Production, Income and Spending of Nations

Long Run Macro

Determining Consumption, Investment and Govt. Shares
Employment and Unemployment
Productivity, Economic Growth and Determining Factors
A Look at Money, Inflation and the Fed

Short Run Macro

Introduction to Economic Fluctuations
Economic Fluctuations Model
Using the ADIA Model

Macro Policy Issues

Intro to Macroeconomic Policy
Fiscal Policy
Monetary Policy
Monetary Policy Analysis

International Economic Issues

Gains from Trade
International Trade Policy – Tariffs and Quotas

Course Staff

Picture of John Taylor

John B. Taylor

John B. Taylor is the George P. Shultz Senior Fellow in Economics at the Hoover Institution and the Mary and Robert Raymond Professor of Economics at Stanford University. He was previously the director of the Stanford Institute for Economic Policy Research and was founding director of Stanford's Introductory Economics Center. He has a long and distinguished record of public service. Among other roles, he served as a member of the President’s Council of Economic Advisors from 1989 to 1991 and as Under Secretary of the Treasury for International Affairs from 2001 to 2005.

Picture of Ryan Triolo

David Benjamin Zuckerman

David Benjamin Zuckerman is a PhD student in Economics at Stanford University. It is his second year being a teaching assistant for Principles of Economics at Stanford.

Picture of Ryan Triolo

Joon Yoon

Joon Yoon is a PhD student in Economics at Stanford University. It is his fourth year being a teaching assistant for Principles of Economics at Stanford.

  1. Course Number

    Econ 1V
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