Handbook

The first part of this course aims to provide methodological tools for advanced research in macroeconomics. The emphasis is on theory, although data guides the theoretical explorations. Students will study models where behaviour is derived from basic assumptions about consumers’ preferences, production technologies, and information; as well as alternative ways of solving dynamic optimisation problems. The second half of the course is an introduction to the dynamic general equilibrium approach to macroeconomics, which evolved from neoclassical macroeconomics and real business cycle theory to include many aspects of the aggregate economy, including rational expectations, the open economy, exchange rates, nominal rigidities, and monetary and fiscal policy. For each topic, we will also cover problem solving and numerical techniques and apply them to the particular topic in discussion. Some data analysis is also part of the learning process.