Advanced Macroeconomics II

Introduction

This half semester course aims to introduce students to the basic models of business cycles used in modern macroeconomics. We will start with the Real business cycles model and examine its empirical performance. We will then study the New Keynesian Model and introduce monetary policy in that framework.

Course content

• Facts about the business cycle
• Real Business Cycle theory and performance
• Log-linearization
• The New Keynesian Model
• Intro to Monetary Policy

There will be 5 lectures (15 lecture hours). In addition, 3 lecture hours will be used for exercises and for providing feedback to students on problem sets. Students are required to participate in class – both in discussions and by presenting models/material from the reading lists –  as well as solve and hand in solutions to exercises and problems.