Course description
This course is devoted to dynamic modeling of macroeconomic processes. The students will recall basic macroeconomic models of representative economic agents (consumers and producers) and will place them into dynamic context. They will master main macroeconomic dynamic models — overlapping generations model and Ramsey model. The students will learn to use these models to discuss fiscal policy issues and pension systems. The students will also master main models of endogenous economic growth (AK-model, Romer model, Barro models) and will grasp the general approach of economists to explaining the source of economic growth. Besides, the students will learn main models of business cycles — real business cycle models, models of political business cycle, new-Keynesian models — and will be able to use them in analyzing current economic situation.
Literature
- Wickens M. Macroeconomic Theory. Princeton University Press. 2012.
- Benassy J.-P. Macroeconomic Theory. Oxford: Oxford University Press, 2011.
- Romer D. Advanced Macroeconomics. New York: McGraw-Hill, 2011.