Macroeconomics II
Objectives
The course (*) is
divided in two parts. The first part the core model of macroeconomics. The
second part introduces extensions and frontier research.
In the first part, I present neoclassical and new Keynesian work-horse models in discrete time. I will present solutions techniques that can be implemented on a computer but emphasize understanding the link between the modelling assumptions and the economic implications. In this part, I will cover monetary policy and fiscal policy. In the second part, I will present 4 research frontier topics based on recent papers: fiscal unions, optimal taxation, shocks, and heterogeneity.
(* the updated course’s syllabus will be available to students at the beginning of each academic term)
General characterization
Code
6119
Credits
8
Responsible teacher
Prof Doutor Francesco Aldo Franco
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
n/a
Bibliography
TBA
Teaching method
Theory classes with
resolution on the whiteboard. 5 problem sets
In the first part, I
present neoclassical and new Keynesian work-horse models in discrete time. I
present solutions techniques that can be
implemented on a computer
but emphasize understanding the link between the modelling assumptions and the
economic implications. In this
part, I cover monetary
policy and fiscal policy.
In the second part, I
present three research frontier topics based on recent papers: fiscal unions
(advanced monetary policy and fiscal policy),
optimal capital taxation,
and heterogeneity in macroeconomics (introduction).
The problem sets are solved in groups.
Evaluation method
5 problem sets: 20%
1 midterm: 40%
Final exam: 40%
Subject matter
Part I - Introduction
The state of Macro. Short history of modern thought.
Facts. Time series concepts.
Part II
Fiscal Unions. A model of cross-country risk sharing as a second-best problem for members of a currency union using an open economy model with nominal rigidities.