Macroeconomic Theory

Catalog description

Micro-founded dynamic general equilibrium models have become the standard tool for macroeconomic analysis. Course provides guidance on how to work with these models. Our baseline New Keynesian model will feature sticky prices combined with monopolistic competition. We will show that the result in framework is appealing from an empirical point of view and we will use it to assess the desirability of alternative arrangements for the conduct of monetary policy. Prerequisite: Economics 601.