Course Syllabus
Obiettivi formativi
The aim of this course is to introduce students to the main facts about business cycles and to the macroeconomic
models that are useful in understanding economic fluctuations.
Contenuti sintetici
The course teaches you the main characteristics of business cycles and the macroeconomic
models designed to explain economic fluctuations. These models highlight the
role of forward looking expectations and uncertainty in macroeconomics. We will also consider
extensions that incorporate frictions and heterogeneous agents.
The course addresses the question of how fiscal and monetary policy can alleviate the severity
of business cycles with a special emphasis on policies pursued during the financial crisis and the
pandemic.
Programma esteso
- Introduction: Basic facts about business cycles and economic fluctuations
- The Real Business Cycle (RBC) model
- Consumption under uncertainty and the consumption Capital Asset Pricing Model (CAPM)
- Fiscal and monetary policy in the Real Business Cycle model: theory and evidence
- The New-Keynesian (NK) model
- Monetary policy in the New-Keynesian model
- Rules versus discretion, liquidity traps and unconventional monetary policy
- Topics: inequality and heterogeneity in macroeconomics; the financial crisis and the
pandemic
Prerequisiti
Economics: Familiarity with an intermediate macroeconomics text such as Robert Barro,
Macroeconomics: A Modern Approach, 2008, 1st edition, Thomson South-Western; or N. Gregory
Mankiw, Macroeconomics, Worth Publishers or any other intermediate undergraduate
macroeconomic textbook.
Mathematics: Familiarity with calculus at the level of Alpha C. Chiang, Fundamental Methods of
Mathematical Economics, McGraw Hill and basic differential equations. Dynamic optimization will
be introduced during the course. A useful reference for some mathematical concepts is the
textbook: Simon, C. & Blume, L. Mathematics for Economists.
Metodi didattici
Lectures will be held in presence and according to the rules the University will set for the a.y. 2022-23.
Lectures will be complemented by seminars during which the student will learn how to solve problem
sets and simulate models with MATLAB.
Modalità di verifica dell'apprendimento
The exam is a written test.
Testi di riferimento
Lecture notes will be made available. The main textbooks are:
Romer, D. Advanced Macroeconomics, 5th edition, McGraw-Hill, 2012
Galí, J., Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian
Framework, Princeton University Press, 2015
Niepelt, D. Macroeconomic Analysis, The MIT Press, 2019
For some topics, journal articles will be used.
Periodo di erogazione dell'insegnamento
II semestre
Lingua di insegnamento
English
Sustainable Development Goals
Learning objectives
The aim of this course is to introduce students to the main facts about business cycles and to the macroeconomic
models that are useful in understanding economic fluctuations.
Contents
The course teaches you the main characteristics of business cycles and the macroeconomic
models designed to explain economic fluctuations. These models highlight the
role of forward looking expectations and uncertainty in macroeconomics. We will also consider
extensions that incorporate frictions and heterogeneous agents.
The course addresses the question of how fiscal and monetary policy can alleviate the severity
of business cycles with a special emphasis on policies pursued during the financial crisis and the
pandemic.
Detailed program
- Introduction: Basic facts about business cycles and economic fluctuations
- The Real Business Cycle (RBC) model
- Consumption under uncertainty and the consumption Capital Asset Pricing Model (CAPM)
- Fiscal and monetary policy in the Real Business Cycle model: theory and evidence
- The New-Keynesian (NK) model
- Monetary policy in the New-Keynesian model
- Rules versus discretion, liquidity traps and unconventional monetary policy
- Topics: inequality and heterogeneity in macroeconomics; the financial crisis and the
pandemic
Prerequisites
Economics: Familiarity with an intermediate macroeconomics text such as Robert Barro,
Macroeconomics: A Modern Approach, 2008, 1st edition, Thomson South-Western; or N. Gregory
Mankiw, Macroeconomics, Worth Publishers or any other intermediate undergraduate
macroeconomic textbook.
Mathematics: Familiarity with calculus at the level of Alpha C. Chiang, Fundamental Methods of
Mathematical Economics, McGraw Hill and basic differential equations. Dynamic optimization will
be introduced during the course. A useful reference for some mathematical concepts is the
textbook: Simon, C. & Blume, L. Mathematics for Economists.
Teaching methods
CLectures will be held in presence and according to the rules the University will set for the a.y. 2022-23.
Lectures will be complemented by seminars during which the student will learn how to solve problem
sets and simulate models with MATLAB.
Assessment methods
The exam is a written test.
Textbooks and Reading Materials
Lecture notes will be made available. The main textbooks are:
Romer, D. Advanced Macroeconomics, 5th edition, McGraw-Hill, 2012
Galí, J., Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian
Framework, Princeton University Press, 2015
Niepelt, D. Macroeconomic Analysis, The MIT Press, 2019
For some topics, journal articles will be used.
Semester
II semester
Teaching language
English
