Macroeconomics The main purpose of this course is to analyse the ...

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Oct 28, 2013 (4 years and 13 days ago)

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Macroeconomics
P
ROFESSOR
G
IANLUCA
F
EMMINIS
;

P
ROFESSOR
G
ERD
W
EINRICH

COURSE AIMS
The main purpose of this course is to analyse the fundamental features of some
modern macroeconomic models, chosen among the most widely used. The course
has two targets: it allows students to understand the logical structure of
macroeconomic simulations models; and it provides students with an "access key"
to the more advanced materials. Accordingly, this course is preliminary to the ones
in monetary economics and in international money. It should also be useful to the
students interested in the "frontier" literature.
COURSE CONTENT
M
ODULE
I
: Professor Gianluca Femminis
– Dynamic IS-LM models, and their representation by means of a
difference/differential equation.
– Bi-dimensional dynamics in the IS-LM model:
* The role of long-term interest rates.
* The role of the stock market.
– The rational expectations hypothesis, and the new classical macroeconomics.
– A Lagrangean approach to traditional optimal growth models.
– An introduction to real business cycle models
– The New Keynesian "synthesis", and the New Keynesian Phillips’ Curve.
M
ODULE
II:
Professor Gerd Weinrich
– New Keynesian economics (I): imperfections of the markets for goods and
labour and nominal rigidities.
– New Keynesian economics (II): the credit view.
– Review of growth theory: Harrod-Domar, Kaldor-Pasinetti, Solow-Swan.
– Endogenous growth theory: role of increasing returns, R&D-based models,
education and human capital.
– Introduction to optimal growth theory.
READING LIST
The preliminary understanding of an introductory macroeconomics textbook - such as one of
the following - is necessary:
O.

B
LANCHARD
,
Macroeconomia, Il Mulino, Bologna, 2009 or
O.

B
LANCHARD
,
Macroeconomics,
Prentice Hall, 2009

For the first module, lecture notes will be available on G. Femminis’ webpage.
The following two textbooks will be useful to cover some of the topics in Module I:
G.

M
C
C
ANDLESS
, The ABC of RBC, Harvard University Press, 2008;
J.

G
ALÌ
Monetary Policy, Inflation and the Business cycle, Princeton University Press, 2007.

For the second module,
lecture slides will be available on Blackboard.
References will be made to the following textbook and journal articles:
D.

R
OMER
, Advanced Macroeconomics, 3rd Edition, McGraw-Hill, New York, 2006.
O.

B
LANCHARD
,

N.

K
IYOTAKI
,

“Monopolistic Competition and the Effects of Aggregate
Demand”, American Economic Review, 77(4), 1987.
B.

B
ERNANKE
,

A.

B
LINDER
,

“Credit, Money and Aggregate Demand”, American Economic
Review Papers and Proceedings, 78(2), 1988.
TEACHING METHOD
Lectures.
ASSESSMENT METHOD
Written test, plus possibility of a verbal discussion. The exam will be administered at
one time for both modules.
The written exam involves "degrees of freedom", the students shall be required to
answer two question out of a pool of three for each module.
NOTES
Further information can be found on the lecturer's webpage.