Macroeconomics 2

Catalog description

Macroeconomics 2 presents an overview of macroeconomics at the Master's level. The main theories are introduced in as intuitive a way as possible, to pinpoint as rigorously as possible which ones withstand empirical scrutiny and why. This is not a theoretical course, but techniques are discussed that help think about labor, goods and financial markets in a unified manner, and that motivate key empirical questions. Special attention is being paid to data and what empirical research has taught us. The proposed structure leaves plenty of room for group discussions, particularly as regards more recent developments on both empirical and theoretical fronts. The course covers basic concepts of labor market equilibrium and labor market institutions, capital investment and technical progress: business cycles and volatility. Financial market frictions, the demand for goods, demand management and the Phillips curve debate will be addressed as well as the relevance of heterogeneity in macroeconomics. After extensive coverage of a closed economy the course moves to an internationally open economy: terms of trade, currency adjustment and capital flows.