## Econ 721: Macroeconomics, first year PhD, second semester

Last updated: March 2017

Warning: the follow lecture notes may contain typos, errors, and incomplete citations. Please do not share without permission. Suggestions are always welcomed! I will post additional lecture notes as the semester progresses.

Syllabus

Lecture 1: Big picture

Lecture 2: Some stylized facts

Lecture 3: A very basic RBC model

Lecture 4: Social planner's problem

Lecture 5: Solution to RBC model -- steady state and dynamics

Lecture 6: RBC with endogenous labor supply and exogenous growth

Lecture 7: Stochastic RBC model, calibration and evaluation of model

Lecture 8: Open endowment-economy model

Lecture 9: SOE model with capital

Lecture 10: SOE RBC model

Lecture 11 & 12: Sovereign debt facts & models

Lecture 13: Nominal rigidities in a two-period model

Lecture 14: Monetary policies in a two-period model

Lecture 15: Infinite horizon model with nominal rigidity

Lecture 16: Optimal monetary policy

Lecture 17: NK models with labor market frictions

New Keynesian models with debt and (simple) financial friction:

Lecture 18: SOE model with nominal rigidity

Lecture 19: Exchange rate policy

Lecture 20: NK model & debt deleveraging at zero lower bound

Lecture 21: Evidence for role of debt & NK frictions in 2007-2009 recession

Lecture 22: Motivation & Kiyotaki Moore I [overlay]

Lecture 23: Kiyotaki Moore 2 [overlay]

Lecture 24: Bank run [overlay]

Lecture 25 (if time permits): Bubbles [overlay]

Lecture 25: Closing

Homework 1: Solow growth model and H-P filter

Homework 2: RBC basics

Homework 3: Solving RBC model

Homework 4: RBC model with elastic labor supply

Homework 5: Stochastic RBC model & Open economy model

Homework 6: New Keynesian basics

Homework 7: New Keynesian (continued)

Homework 8: New Keynesian in open economy

Homework 9: New Keynesian at Zero Lower Bound

Homework 10: Financial frictions

Midterm 1, 2015

Midterm 2, 2015

Final exam, 2015

Midterm 1, 2016

Midterm 2, 2016

Final exam, 2016

Midterm 1, 2017

Qualifying exam August 2015

Qualifying exam January 2016

Qualifying exam August 2016

Qualifying exam January 2017

Qualifying exam February 2017

Syllabus

Lecture 1: Big picture

**Real Business Cycles (RBC):**Lecture 2: Some stylized facts

Lecture 3: A very basic RBC model

Lecture 4: Social planner's problem

Lecture 5: Solution to RBC model -- steady state and dynamics

Lecture 6: RBC with endogenous labor supply and exogenous growth

Lecture 7: Stochastic RBC model, calibration and evaluation of model

**Small open economy (SOE) RBC:**Lecture 8: Open endowment-economy model

Lecture 9: SOE model with capital

Lecture 10: SOE RBC model

*- Midterm 1 -*Lecture 11 & 12: Sovereign debt facts & models

**New Keynesian economics & related topics:**Lecture 13: Nominal rigidities in a two-period model

Lecture 14: Monetary policies in a two-period model

Lecture 15: Infinite horizon model with nominal rigidity

Lecture 16: Optimal monetary policy

Lecture 17: NK models with labor market frictions

*- Midterm 2 -*New Keynesian models with debt and (simple) financial friction:

Lecture 18: SOE model with nominal rigidity

Lecture 19: Exchange rate policy

Lecture 20: NK model & debt deleveraging at zero lower bound

Lecture 21: Evidence for role of debt & NK frictions in 2007-2009 recession

**Financial frictions and other topics**Lecture 22: Motivation & Kiyotaki Moore I [overlay]

Lecture 23: Kiyotaki Moore 2 [overlay]

Lecture 24: Bank run [overlay]

Lecture 25 (if time permits): Bubbles [overlay]

Lecture 25: Closing

**Problem sets**Homework 1: Solow growth model and H-P filter

Homework 2: RBC basics

Homework 3: Solving RBC model

Homework 4: RBC model with elastic labor supply

Homework 5: Stochastic RBC model & Open economy model

Homework 6: New Keynesian basics

Homework 7: New Keynesian (continued)

Homework 8: New Keynesian in open economy

Homework 9: New Keynesian at Zero Lower Bound

Homework 10: Financial frictions

**Past exams**Midterm 1, 2015

Midterm 2, 2015

Final exam, 2015

Midterm 1, 2016

Midterm 2, 2016

Final exam, 2016

Midterm 1, 2017

Qualifying exam August 2015

Qualifying exam January 2016

Qualifying exam August 2016

Qualifying exam January 2017

Qualifying exam February 2017