Syllabus
(1)Adaptive expectations. Theory of rational expectations.Effective market theory.(2) Aggregate supply models: Friedman and Lucas.
Sticky prices model.(3) Real business cycle theory I: Robinson Crusoe economy, Intertemporal budget constraint. Public debt.
Internationalinvestment position.(4) Real business cycle theory II.(5)New keynesian theory.(6) Dynamic AD-AS model. Demand and supply shocks in DAD-DAS model.(7) Inflation.(8) Unemployment.(9) Consumption.(10) Investment.(11) Long Term Growth.(12) Economic policy.
Annotation
This course follows in Macroeconomics I. This course brings transition from simple static and comparative static analysis to simple dynamic analysis.
In the first part of the course the intertemporal budget constraint as well as the formation of expectations in economics are being described. In the second part of the course (from 3rd till 9th week) the main topics of the macroeconomic theory in the second half of the 20th century are being discussed, namely aggregate supply, inflation and unemployment.
In its third part (from 10th till 13th week) course discusses basic models of consumption, investment and long run economic growth. Then the course briefly discusses some problems of public policies.
