Macroeconomics I(advanced level)
- To give a broad overview of substantive issues of modern macroeconomics;
- To teach analytical tools and methods of macroeconomic analysis to enable students to continue their education at a Ph.D. level and to read research papers in the area;
- To enable students to conduct applied analysis of macroeconomic policy while working for government agencies, think tanks, central banks or the private sector;
- To give students the essential knowledge for applied courses, including financial economics.
- explain the stylized facts of economic growth
- explain why modern microeconomic models must have microeconomic foundations
- outline the main approaches to modeling optimizing agents in macroeconomic models, including the ways to solve the models
- list and explain basic microfounded models of endogenous growth
- be eble to add money to the micro-founded macroeconomic models
- assess the impact of social infrastructure on economic growth and other macroeconomic outcomes.
- Introduction to economic growth. Solow model with endogenous growth, extensions and applications. Empirical tests
- Lucas critique and its impact on macroeconomic modeling
- Dynamic optimizing macroeconomic models: an introduction and applications3.1. Two-period model. The Euler equation. Application to the current account in an open economy. 3.2. Infinitely-lived representative agent framework. Cass-Koopmans optimal growth model in continuous time. 3.3. Overlapping-generations framework and the Diamond model. Applications to fiscal policy and social security. 3.4. Ricardian equivalence: theory and evidence
- Endogenous growth. Advanced topics.
- Money in dynamic optimizing macroeconomic models.5.1. Sidrauski model. Superneutrality, Tobin effect and the Friedman rule.
- Social infrastructure, predation and protection in macroeconomic models
- Interim assessment (1 semester)0.05 * course participation + 0.6 * exam + 0.1 * homework assignments + 0.25 * midterm test
- Advanced macroeconomics, Romer, D., 2001
- Blanchard, O., & Fischer, S. (1989). Lectures on Macroeconomics. Cambridge, Mass: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=nlebk&AN=11345
- Economic growth, Barro, R. J., Sala-i-Martin, X., 2004
- Foundations of international macroeconomics, Obstfeld, M., Rogoff, K., 1996
- Introduction to economic growth, Jones, C. I., 2002