(1) Some simple models with forward looking behaviour.
– IS-LM and Rational Expectations: the Blanchard model: Blanchard & Fischer, Ch. 10
– Exchange Rates: the Dornbusch model: Blanchard & Fischer, Ch. 10, Sect. 10.4
(2) Permanent Income Theory of Consumption.
– Blanchard & Fischer (1989): Par.5.1, p.214-221, Ch.5.
– Bagliano & Bertola (2004): Ch.1: available online at: http://www.oup.co.uk/pdf/0-19-926682-4.pdf
(3) Building blocks for Growth Theory: the Ramsey Model and the Overlapping Generations Model (OLG).
– Barro & Sala-I-Martin (1995): Economic Growth, McGraw-Hill: Mathematical Appendix: Sect.1.3, p.498-510.
– Blanchard & Fischer (1989): Sect.2.1, Ch.2. (Ramsey model).
– Blanchard & Fischer (1989): Sect.3.1., Ch.3.
– Romer (2012), Advanced Macroeconomics (4th edition), Ch.2, Part B (the Diamond model): p.77-92.
(4) Monopolistic Competition and Nominal Rigidities.
– Blanchard & Fischer (1989), Lectures on Macroeconomics, Ch. 8, Sect. 8.1 (simplified version of the Blanchard-Kiyotaki model)
– Akerlof and Yellen (1985), “A Near-Rational Model of the Business Cycle with Wage and Price Inertia”, Quarterly Journal of Economics, p. 823 – 838
– Romer (2012), Advanced Macroeconomics (4th edition), Ch. 6, Part C: Sect. 6.5, 6.6, 6.7.
(5) Introduction to Vector Autoregression (VAR) and DSGE Models.
– Identifying the impact of money shocks: some hints on VAR analysis: M. Enders, Sects. 5.5-5.8
– The standard New Keynesian DSGE Model: Walsh (2017), Ch. 8.
(6) Asset Equations and the Labour Market: Efficiency Wages & Matching.
– Shapiro & Stiglitz (1984), “Equilibrium unemployment as a worker discipline device”, American Economic Review, p.433-444.
– Romer (2012), Advanced Macroeconomics (4th edition), Cap 10, Sect. 10.4.
– Romer (2012), Advanced Macroeconomics (4th edition), Cap 10, Sect. 10.6.
Main Textbooks:
(1) Blanchard & Fischer (1989), Lectures on Macroeconomics, MIT Press
(2) D.Romer (2012), Advanced Macroeconomics (4th edition), McGraw-Hill
(3) Bagliano & Bertola (2004), Models for Dynamic Macroeconomics, OUP
(4) Walsh (2017), Monetary Theory and Policy (4th edition), MIT Press
(5) W. Enders (1995), Applied Econometric Time Series: User’s Guide, Wiley
Problem sets will be distributed during the lectures. Exercises will be corrected in classes.