Macroeconomic Analysis and Policies: Monetary and Fiscal Policy over the Business Cycle

 

Outline and Readings

Lectures 1-2 The basic NK model: general equilibrium, solution, analysis, determinacy, monetary policy, optimal policy: linear-quadratic, commitment versus discretion, Ramsey-optimal

Monetary and Fiscal Policy with Monopolistic Competition and Sticky Prices (Errata for Chapter 5)

Lecture 3: Fiscal Policy  (Ricardian Equivalence, Fiscal Theory of the Price Level; Fiscal Multipliers; Non-separability and Complementarity); 

Lecture 4: Zero Lower Bound and Liquidity Traps: Fiscal and Monetary Policy (Fundamental vs Sunspots; Forward Guidance and Quantitative Easing; Optimal Policy with a Binding Constraint)

Lecture 5 (Aggregate Demand): Everything you always wanted to know about HANK (but were too afraid to ask)

Simple Heterogeneous-Agent New Keynesian Models HANK and TANK (two-agent NK); Monetary and Fiscal Policies; Forward Guidance; Liquidity and Optimal Policy

Lecture 6 (Aggregate Supply): Entry, new products and monetary policy; A neutrality benchmark; Optimal policy

Monetary Neutrality with Sticky Prices (and Free Entry)

Slides used to summarize my several papers with Ghironi and Melitz (and the paper with Fujiwara)