Advanced Topics in Macroeconomics (316-0-20)

Instructors

Martin S Eichenbaum

Meeting Info

Harris Hall L07: Tues, Thurs 3:30PM - 4:50PM

Overview of class

This course examines the causes and consequences of growth and fluctuations in aggregate economic activity. We begin by reviewing existing evidence on the answers to the following questions: How important are fluctuations in the modern U.S.? Why were fluctuations larger in the nineteenth century and the first half of the twentieth century? Who gains and who suffers most because of fluctuations? How is inflation related to economic fluctuations? Why are fluctuations larger in developing economies than in developed economies? To understand the facts that we will document, we will consider modern general equilibrium theories of aggregate fluctuations. One important class of theories, Real Business Cycle theory, stresses the role of fluctuations in the rate of technology change. A different class of theories stresses the role of fluctuations in aggregate demand, including self-fulfilling changes in consumers' expectations. These theories have very different implications for optimal monetary and fiscal policy, which we will explore and evaluate. Finally, we will consider the impact of the COVID-19 epidemic on the economy.

Registration Requirements

ECON 201

Teaching Method

Class Materials (Required)

"Advanced Macroeconomics (Mcgraw-hill Economics) 5th Edition
By David Romer, 978-1260185218"

Class Notes

The textbook will be supplemented with extensive class notes.

Enrollment Requirements

Enrollment Requirements: Pre-requisite: Students must have taken ECON 310-1 or MMSS 211-1 and ECON 281 or ECON 381-1 or MATH 386-1 or IEMS 304 or STAT 350 to successfully enroll in this course.

Associated Classes

DIS - Technological Institute M128: Fri 4:00PM - 4:50PM