Macroeconomics 1

Number of Credits: 7 credits

Hours: 30 hours of Lectures, 30 hours of Tutorials including exam, and 20 hours of flipped Classrooms with tutor support.

General Presentation: This course examines theoretical Macroeconomics. It will include a number of topics:

1) Economics Growth: the Solow model

2) Consumption Behavior

3) Economic Growth with Endogenous Saving Behavior: the Ramsey-Cass-Koopmans model

4) The Labor Market: efficiency wages, matching models, the equilibrium rate of unemployment

5) Market Imperfections: price and wage inertia, imperfect competition and macroeconomics, coordination failures, and neo-Keynesian theory

6) Open-Economy Macroeconomics: the Dornbusch model, exchange rates, and current account dynamics

7) Macroeconomic Policy: rules vs discretion, credibility, Taylor rules, the new neoclassical synthesis, the new IS-LM model.

Books: David Romer, Advanced Macroeconomics, (Mac Graw-Hill, second edition, 2001). O. Blanchard and S. Fischer, Lectures on Macroeconomics, The MIT Press.

Prerequisites: Logic and Sets, Multivariable Calculus, and Optimization.