Advanced Macroeconomics I : Intertemporal Behavior and Business Cycles
[ECON2121]
[30h + 6h] 5 credits
Teacher(s): Olivier Pierrard(supplée Henri Sneessens), Henri Sneessens
Language: English
Level: Second
Aims
Main themes
- households and firms's intertemporal behaviors;
- Pareto optimality and first welfare theorem;
- adjustment mechanisms in the open economy;
- real business cycle models;
- nominal rigidities and New Keynesian models;
- effects of monetary and fiscal policies.
Content and teaching methods
The Ramsey Model
Financing Government Expenditures
Investment and Savings in a Small Open Economy
2. Real Business Cycle Models
Observed Empirical Regularities
The Basic RBC Model
Evaluation and Extensions
3. Money in General Equilibrium Models
Monetary Shocks and Economic Fluctuations in a Model à la Sidrausky
Monetary Shocks and Imperfect Information: the Lucas Model
4. New Keynesian Models of the Business Cycle
Staggered Wage Contracts (Fisher and Tylor Models)
A Model with Monopolistic Competition and Calvo Contracts
Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)
(ou équivalent)
homeworks and written exam (closed books)
Two main reference textbooks:
Blanchard O.J. and S. Fischer, Lectures on Macroeconomics, Cambridge (US): MIT Press, 1989.
Romer D., Advanced Macroeconomics, 3d ed., New York: McGraw-Hill, 2005.
Supplemented by lecture notes and reading list.
tutorial classes