This course develops dynamic macroeconomic theory from household and firm optimization to quantitative general-equilibrium models. It covers neoclassical growth, RBC models, nominal rigidities, monetary and fiscal policy, open-economy macroeconomics, incomplete markets, HANK models, and DSGE estimation.
What you will learn
- Derive Euler equations, firm optimality conditions, and equilibrium restrictions.
- Solve steady-state and transition problems in dynamic macroeconomic systems.
- Analyze rational-expectations determinacy and policy transmission.
- Implement and diagnose quantitative DSGE models.
- Explain the role of heterogeneity and distributions in aggregate outcomes.
- Evaluate model fit, policy counterfactuals, and welfare.
How the course is organized
Each lecture session has a full set of written notes: learning objectives, formal development with derivations, worked examples, a problem set, a computational lab and readings. Problem sets with solution guidance and examination specifications are under Assignments and Exams.
Part I · Neoclassical foundations Lectures 1–4
Part II · Nominal rigidities and policy Lectures 5–9
Part III · Solution and estimation Lectures 10–11
Part IV · Heterogeneous agents Lectures 12–13
Part V · Quantitative policy analysis Lecture 14
Assessment
Theory problem sets 25%; DSGE replication project 25%; policy analysis 15%; midterm 15%; final research paper 20%.
Core references
- Ljungqvist and Sargent, Recursive Macroeconomic Theory.
- Galí, Monetary Policy, Inflation, and the Business Cycle.
- Woodford, Interest and Prices.
- Heer and Maussner, Dynamic General Equilibrium Modeling.
- Acemoglu, Introduction to Modern Economic Growth.
- Obstfeld and Rogoff, Foundations of International Macroeconomics.