Macroeconomics II

Catalog description

This course studies competitive macroeconomic models, with applications to growth and fiscal policies. The complete markets model is studied with rigor, showing its equivalence with the sequential environment, its recursive representation and the welfare theorems. We discuss the implementation of fiscal policies, focusing on normative recommendations. The overlapping generations model is introduced, with emphasis on its dynamic properties and the role of money and fiscal policy when agents have finite and overlapping lives.