14.452 Macroeconomic Theory II, Spring 2002

The basic machines of macroeconomics. Ramsey, Solow, Samuelson-Diamond, RBCs, ISLM, Mundell-Fleming, Fischer-Taylor. How they work, what shortcuts they take, and how they can be used. Half-term subject. From the course home page: Course Description This is the second course in the four-quarter graduate sequence in macroeconomics. Its purpose is to introduce the basic models macroeconomists use to study fluctuations. The course is organized around nine topics/sections: Fluctuations and Facts The basic model: the consumption/saving choice Allowing for a labor/leisure choice (the RBC model) Allowing for non trivial investment decisions Allowing for two goods Introducing money Introducing price setting Introducing staggering of price decisions Applications to fiscal and monetary policy