Macroeconomics III
Degree in Economics
Instructors: Sergi Basco
Office Hours: To be scheduled by the instructors.
Time and Classroom: Monday and Wednesdays from 10 to 12pm in room 2016.
HANDBOOK
There is no handbook. Recommended books include
Basco, S. (2018). Housing Bubbles: Origins and Consequences. Palgrave Macmillan
Mankiw, G. (2010). Macroeconomics. Worth Publishing.
Romer, D. (2011). Advanced Macroeconomics. McGraw Hill
GRADING (CONTINUOUS EVALUATION)
Midterm Evalutation (Test I): 40 %
End-of-course Evalutation (Test II): 40 %
Problem sets: 10%
Class participation: 10%
IMPORTANT: A grade of 3 in both Test I and Test II is required to pass the course.
IMPORTANT (ii): To opt for the UNIQUE EVALUATION, you need to formally request it before the end of the second week of lectures.
PART I: EXPECTATIONS
Introduction
Types of Expectations
Cobweb Model
Hyperinflation:Cagan Model
Lucas Imperfect Information Model
PART II: MONETARY POLICY
Costs of Inflation
Optimal Monetary Policy: Backward
Optimal Monetary Policy: Forward
Liquidity Trap
Dynamic Inconsistency
PART III: BUSINESS CYCLES
Economic Effects of Pandemics
Business Cycles Facts
A Model of Real Business Cycles
New Keynesian Models
PART IV: EXPECTATIONS AND FINANCIAL MARKETS
Introduction to Asset Price Bubbles
A Model of Bank Runs
Currency Crises