ECTS : 3
Description du contenu de l'enseignement :
This 24-hour course is a graduate-level introduction to financial macroeconomics. The main objective of this course is to provide students with a rigourous approach to the basic ingredients behind any macroeconomic model, i.e the consumption/demand and production/supply sides. In an intuitive approach, students are first thaught the standard techniques of dynamic programming. The traditional consumer's decision problem is then covered, potentially but not exclusively through the lens of this newly exposed method. Before studying real business cycle models as a whole and therefore being able to investigate why aggregate economic activity fluctuates in a general equilibrium setting, students learn about the neoclassical theory of investment (i.e the Ramsay model). Finally, to better understand the links between output and inflation and if time allows, students are introduced to the role played by money and the importance of prices. In particular, the New Keynesian framework with its price and/or wage rigidities allows students to analyze the costs and benefits of price stability and the inherent role of central banks.
Mode de contrôle des connaissances :
Pré-requis obligatoires
Basic notions in intermediate macroeconomics (IS/LM model, etc)
Bibliographie, lectures recommandées
There is no textbook that covers all the material of the course. Useful textbooks (even though some of them are really technical and should not scare the students) nevertheless include :
- Blanchard, O.J and Fischer, S. (1989), Lectures on Macroeconomics, Cambridge, MA : MIT Press.
- Obstfeld, M. and Rogoff, K (1996), Foundations of International Macroeconomics, Cambridge, MA : MIT Press