Università Cattolica del Sacro Cuore
Area of Study
Business, Economics, International Economics
Taught In English
Recommended U.S. Semester Credits4
Recommended U.S. Quarter Units6
Hours & Credits
The main purpose of this course is to analyse the fundamental features of modern macroeconomic models, chosen among the most widely used. The course has two targets: to allow students to understand the logical structure of macroeconomic simulations models; and to provide students with an "access key" to the more advanced materials. Accordingly, this course is preliminary to the ones in monetary economics and in international money. It should also be useful to the students interested in the "frontier" literature.
MODULE I: Prof. Gianluca Femminis
? Introductory examples of forward and backward dynamics.
? Output, the stock market and the anticipatory effects of fiscal and monetary policies.
? Log-linearization of simple Aggregate Demand/Aggregate Supply models.
? Traditional Rational Expectation models, the policy ineffectiveness debate and the Lucas? critique.
? Dynamic Rational Expectation models.
? An introduction to traditional growth: the Ramsey model.
? ?Calvo? pricing and the New Keynesian Phillips Curve.
? An introduction to the Real Business Cycle literature.
MODULE II: Prof. Gerd Weinrich
? New Keynesian Economics (I): imperfections of the markets for goods and labour and nominal rigidities.
? New Keynesian Economics (II): the credit view.
? Review of growth theory: Harrod-Domar, Kaldor-Pasinetti, Solow-Swan.
? New growth theory: research and development, human capital.
The preliminary understanding of an introductory macroeconomics textbook ? such as the following ? is necessary:
O. BLANCHARD, Macroeconomics, Prentice Hall, 2009, or O. BLANCHARD-A. AMIGHINI-F. GIAVAZZI, Macroeconomia: una prospettiva europea, Il Mulino 2011, or O. BLANCHARD, Macroeconomia, Il Mulino, Bologna, 2009.
For the first module, lecture notes and lecture slides will be available on G. Femminis? webpage.
The following two textbooks will be useful to cover some of the topics in Module I:
G. MCCANDLESS, The ABC of RBC, Harvard University Press, 2008.
J. GALÌ, Monetary Policy, Inflation and the Business cycle, Princeton University Press, 2007.
For the second module, lecture slides will be available on Blackboard.
References will be made to the following textbook and journal articles:
D. ROMER, Advanced Macroeconomics, McGraw-Hill, New York, 2006 (3rd Edition).
O. BLANCHARD-N. KIYOTAKI, Monopolistic Competition and the Effects of Aggregate Demand, American Economic Review, 77(4), 1987.
B. BERNANKE-A. BLINDER, Credit, Money and Aggregate Demand, American Economic Review Papers and Proceedings, 78(2), 1988.
Written paper, plus possibility of an oral discussion. The exam will be administered at one time for both modules.
The exam involves some "degrees of freedom", the students will be required to answer ?for each module ? two question out of a pool of three.
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.
Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.