Download Advanced macroeconomics Advanced macroeconomics Per i Corsi

Advanced macroeconomics
Advanced macroeconomics
Per i Corsi di laurea:
- EPS n.o.; totale cfu 6
Periodo di erogazione 3° trimestre
Prof. SANTONI MICHELE , DIPARTIMENTO DI ECONOMIA, MANAGEMENT E METODI QUANTITATIVI
Indirizzo:
02503 21511 - v. Conservatorio, 7
Mail:
[email protected]
L'Insegnamento sviluppa crediti sui seguenti settori scientifico disciplinari
6 cfu SECS-P/01 (6 cfu)
Obiettivi
The aim of this course is to provide students with an introductory survey of some selected major aspects of modern
macroeconomic theory. The course will help students develop analytical and technical skills for research in
macroeconomics. The lectures will focus on the main analytical issues. The classes will cover techniques in more detail. The
student seminar presentations (on a voluntary basis) will give students the opportunity to discuss real-world
macroeconomic problems and to reinforce their understanding of the material presented in lectures and classes.
Short Course Description
The course will consist of a selection of the following topics: Topic 1. Why delegating monetary policy to an independent central
bank? Topic 2. Do fiscal deficits lead to hyper- and high inflation? Topic 3. Bank runs and financial crisis. Topic 4. Sovereign debt
crisis. Topic 5. Overlapping generations models and social security. Topic 6. Optimal exogenous growth with infinite horizons. Topic
7. Fiscal policy and the multiplier.
Programma
Topic 1. Why delegating monetary policy to an independent central bank? (Dynamics in aggregate demand and supply: the Adaptive
Expectations Hypothesis (AEH); The Rational Expectations Hypothesis (REH) and the Policy Ineffectiveness Proposition; Credibility of
monetary policy: the “inflation bias” problem; Reputation; Central bank Independence; Escape-clause rules and central banking in
times of crisis). Topic 2. Do fiscal deficits lead to hyper- and high inflation? (Sargent and Wallace (1976) unpleasant monetarist
arithmetic; Dynamics of hyperinflation: the Cagan (1956) model; Seigniorage and inflation under rational expectations). Topic 3.
Bank runs and financial crisis (Multiple equilibria in macroeconomics: Coordination failures; The Diamond-Dybvig (1983) model).
Topic 4. Sovereign debt crisis (The Calvo (1988) model; The Grossman and Van Huyck “excusable default” model). Topic 5.
Overlapping generations models and social security (The Samuelson-Diamond two-period model: equilibrium and efficiency; Social
security systems; Myopia as a rationale for social security). Topic 6. Optimal exogenous growth with infinite horizons (The Ramsey –
Cass-Koopmans model with optimal saving: market solution vs. social planner’s solution; The Intertemporal Government Budget
Constraint, Ricardian equivalence). Topic 7. Fiscal policy and the multiplier.
Materiale di riferimento
Handouts of the lectures will be distributed as the course proceeds. They will be posted on the course website on ARIEL2 unimi.
There is no single textbook for this module. However, lectures will refer to textbooks such as J.P.Bénassy (2011) [JPB].
Macroeconomic Theory, Oxford University Press, O.J. Blanchard and S. Fischer (1989) [BF]. Lectures on Macroeconomics, MIT Press;
B. B. Heijdra (2009) [H]. Foundations of Modern Macroeconomics (2nd edition), Oxford University Press (also useful Heijdra and F.
Van Der Ploeg (2002) [HVP]. Foundations of Modern Macroeconomics, first edition, Oxford University Press); M. Obstfeld and K.
Rogoff (1996) [OR], Foundations of International Macroeconomics, MIT Press; D. Romer (2006, 2012) [DR06, DR12]. Advanced
Macroeconomics. McGraw Hill; C. Walsh (2003, 2010) [WA03, WA10]. Monetary theory and policy, MIT Press. Note: Both BF, and OR
and WA are set at a higher technical level than either H (HVP), DR or JPB.
Programma per non frequentanti
Dyamics in aggregate supply and demand; Rational expectations and economic policy; Anticipation effects and economic policy; The
government budget deficit; Macroeconomic policy, credibility and politics; Exogenous growth; Overlapping generations.
Prerequisiti e modalità d'esame , con riferimento ai descrittori 1 e 2
Students attending the course will take a one-hour-and-half mid-term written examination (50% weight of the overall examination
mark) consisting of three questions (either open questions, or exercises, or mixed), from which to choose one question. Students will
moreover take a one-hour- and-half end-of-term written examination (50% weight of the overall examination mark) consisting of two
questions (either open questions, or exercises, or mixed) from which to choose one question. The final examination mark can be
raised up to two points in case of successful seminar presentation. Further details on seminar presentations will be given at the
beginning of the course.
Prerequisiti e modalità d'esame per non frequentanti , con riferimento ai descrittori 1 e 2
Students not attending the course will take a two-hour written examination, consisting of four theory questions from which to choose
two questions.
Propedeuticità consigliate
Students of this course are assumed to be familiar with the topics of an intermediate macroeconomics module at the undergraduate
level, taught
on textbooks such as O.J. Blanchard (2005 or subsequent editions). Macroeconomics, Prenctice Hall, or S.D. Williamson (2014, fifth
edition), Macroeconomics, Pearson. Students should also be familiar with static and dynamic optimization techniques taught in the
Mathematics course.
Lingua di insegnamento
English
Materiale di riferimento per non frequentanti
Ben Heijdra, Foundations of modern macroeconomics, second edition, 2009 Oxford University Press. chapter 2 (dynamics in
aggregate supply and demand); ch. 3 (rational expectations and economic policy); ch.4 (anticipation effects and economic policy);
ch. 5 (the government budget deficit); ch. 9 (macroeconomic policy, credibility and politics); ch. 13 (Exogenous growth excluding
section 13.7.1); ch. 17 (Overlapping generations pp. 617-37 only). Mathematical appendices are useful for techniques. Knowledge of
static and dynamic optimization in continuous (and less heavily) discrete time is required. Alternatively, students may prepare their
examination on one of the following textbooks: J.P. Bénassy (2011) [JPB]. Macroeconomic Theory, Oxford University Press; O.J.
Blanchard and S. Fischer (1989) [BF]. Lectures on Macroeconomics, MIT Press; M. Obstfeld and K. Rogoff (1996) [OR], Foundations
of International Macroeconomics, MIT Press; D. Romer (1995, 2000, 2006, 2012) [DR]. Advanced Macroeconomics. McGraw Hill; C.
Walsh (2003, 2nd edition, 2010 third edition) [WA]. Monetary theory and policy, MIT Press. Note: Both BF, and OR and WA are set at
a higher technical level than either H (HVP) or DR or JPB. Please contact the teacher ([email protected]) well in advance of
your examination to discuss the details of your study program. Please note the following: 1. students willing to sit the examination as
‘studenti non frequentanti’ must contact the teacher in advance of their preparation. ([email protected]) 2. you should also
contact the teacher the week before your examination.
Pagine web
http://msantonim.ariel.ctu.unimi.it