. -Macroeconomics
Prof. Gianluca Femminis; Prof. Gerd Weinrich
COURSE AIMS
The main purpose of this course is to analyse the fundamental features of 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
Module I: Prof. Gianluca Femminis
–Introductory examples of forward and backward dynamics.
–Output, the stock market and the anticipatory effects of fiscal and monetary policies.
–Log-linearization of simple Aggregate Demand/Aggregate Supply models.
–Traditional Rational Expectation models, the policy ineffectiveness debate and the Lucas’ critique.
–Dynamic Rational Expectation models.
–An introduction to traditional growth: the Ramsey model.
–“Calvo” pricing and the New Keynesian Phillips Curve.
–An introduction to the Real Business Cycle literature.
Module II: Prof. 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.
–New growth theory: research and development, human capital.
READING LIST
The preliminary understanding of an introductory macroeconomics textbook - such as the following - is necessary:
O. Blanchard, Macroeconomia, Il Mulino, Bologna, 2009, or O. Blanchard, Macroeconomics, Prentice Hall, 2009.
For the first module
Lecture notes and lecture slides will be available on G. Femminis’ webpage.
The following two textbooks will be useful to cover some of the topics in Module I:
G. McCandless, The ABC of RBC, HarvardUniversity Press, 2008.
J. Galì,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. Romer,Advanced Macroeconomics,McGraw-Hill, New York, 2006, 3rd ed.
O. Blanchard-N. Kiyotaki, Monopolistic Competition and the Effects of Aggregate Demand, American Economic Review, 77(4), 1987.
B. Bernanke-A. Blinder, Credit,Money and Aggregate Demand, American Economic Review Papers and Proceedings, 78(2), 1988.
TEACHING METHOD
Lectures.
ASSESSMENT METHOD
Written test, plus possibility of an oral 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 lecturers’ web pages.