Macroeconomics basic course (Part I)

Giovanni Di Bartolomeo

Contact: giovanni.dibartolomeo@uniroma1.it

For the second part of the course, see prof. P. Morone's instructions

Readings (intro)

• Blanchard OJ, The state of macro, NBER WP N. 14259, 2008

• Blanchard OJ, What do we know about macroeconomics that Fisher and Wicksell did not?, Quarterly Journal of Economics, 2000

Class outline

• The business cycle

• Fixed vs. flexible prices

• Keynesian cross and multiplier

• Inter-temporal equilibrium

• Demand for money

• Money supply

• The IS-LM model

• Policies in the IS-LM model

• AD-AS model

• Policies in the AD-AS model

• The optimal inflation rate

Main reference

• Blanchand OJ, Macroeconomics

• Mankiew G, Macroeconomics

Extra readings (not compulsory)

• Hicks J, Mr. Keynes and the “Classic”: A suggested interpretation, Econometrica, 1937 (link)

• Phillips W, The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861-1957, Economica, 1958 (link)

• Samuelson PA and RM Solow, Analytical aspects of anti-inflation policy, American Economic Review, 1960 (link)

• Friedman M, The role of monetary policy, American Economic Review, 1968 (link)

• Friedman M, Inflation and unemployment, Nobel Memorial Lecture, 1976 (link)

• Lucas RE and TJ Sargent, After Keynesian macroeconomics", in After the Phillips curve, Fed Reserve Bank of Boston, 1978 (link)

• Taylor R, Staggered wage setting in a macro model, American Economic Review, 1979 (link)

• Lucas R, Monetary neutrality, Nobel Memorial Lecture, 1995 (link)

• Stock JH and MW Watson, Has the business cycle changed? Evidence and explanations, Monetary policy and uncertainty, Fed of Kansas City, 2003 (link)

• King RG, The Phillips curve and US macroeconomic policy: snapshots 1958-1996, Fed of Richmond Economic Quarterly Review, 2008 (link)

• Plosser C, Understanding real business cycles, Journal of Economic Perspectives, 1989 (link

• Clarida R, J Gali, M Gertler, Monetary policy rules and macroeconomic stability: Evidence and some theory, Quarterly Journal of Economics, 2000 (link)