That’s the interesting thing with Romer. He manages to give an introduction to the state-of-the-art theory in every single aspect of macroeconomics. The book has 14 chapters and each chapter is a research agenda in economics. Which is most active really depends on the year. Some years it’s unemployment, some years it’s fiscal policy, some years it’s monetary policy, but that doesn’t mean that the others are not in fashion. It’s just that sometimes one area might get more attention than the others, which may be related just to the agenda at particular academic journals as much as anything else. But every chapter is representative of a very active field in macroeconomics. Introduction to new growth theory. The aim of this lecture is to review the first generation of endogenous models including AK and Romer models. course hours: 2, hours of student’s self study: 4.

Flexible Prices and the Role of Expectations. The aim of the lecture is to present the Cagan's model of money and prices and the Lucas' misperception theory. Course hours: 2; hours of student’s self-study: 4. It’s really difficult from a mathematical point of view. Doing the problem sets is like writing papers. Going through each chapter and then the problem set of the chapter is really challenging and it takes a long time. To cut a long story short, it’s probably the most technical and difficult book you can think of if you want to study macroeconomics. But, obviously, it is the one that pushes you at the frontier. If Romer was the introduction to the frontier in a very broad sense, this one really is the frontier, but in a very narrow sense. The book covers a wide range of topics, but all the topics that the book covers can be recast in this particular analytical form that is called ‘recursive’.I use it for my second-year macroeconomics undergraduate courses. We have two streams in our economics degree, and I teach on the more technical one, the BSc in economics. The book is more technical, not only from a mathematical point of view, but also from a logical point of view. The intuitions are elaborated in detail and very precise and the book requires you to think at a level of abstraction that is far higher than what Mankiw requires. is able to understand and interpret determinants of economic growth in developed and developing countries Introduction to intertemporal macroeconomics. The aim of this lecture is to present a dynamic approach to macroeconomics using simple general equilibrium models. course hours: 2, hours of student’s self study 4.

Growth Accounting Convergence Saving and Investment Wars and Real Interest Rates Are Modern Economies Dynamically Efficient? Time-Series Tests of Endogenous Growth Models Population Growth and Technological Change since 1 Million B.C. Accounting for Cross-Country Income Differences Social Infrastructure and Cross-Country Income Differences Geography, Colonialism, and Economic Development Calibrating a Real-Business-Cycle Model Money and Output The Cyclical Behavior of the Real Wage Experimental Evidence on Coordination-Failure Games International Evidence on the Output-Inflation Tradeoff Microeconomic Evidence on Price Adjustment Inflation Inertia Understanding Estimated Consumption Functions Campbell and Mankiw’s Test Using Aggregate Data Shea’s Test Using Household Data The Equity-Premium Puzzle Credit Limits and Borrowing q and Investment Cash Flow and Investment Contracting Effects on Employment Interindustry Wage Differences Survey Evidence on Wage Rigidity The Term Structure and Changes in the Federal Reserve’s Funds-Rate Target Estimating Interest-Rate Rules Central-Bank Independence and Inflation The Great Inflation Is U.S. Fiscal Policy on a Sustainable Path? Politics and Deficits in Industrialized Countries xvii Hayashi F., 1982, Tobin's marginal q and average q: A neoclassical interpretation, Econometrica 50, 213-224. Also available as an e-book with functionality, navigation features, and links that offer extra learning support Yellen J. L. (1984) 'Efficiency Wage Models of Unemployment', American Economic Review , Vol. 74, pp. 200-205. It is a way of recasting any dynamic problem in macroeconomics in a specific analytical way, that is called a recurse. It is the book over which generations of PhD students in macroeconomics have sweated blood. And any good book for PhD students in macroeconomics should be stained with sweat and blood, because it needs to be highly technical. This book is.

Basic model of efficiency wages. The aim of this lecture is to present and analyse basic version of efficiency wages theory to explain why wages might be set over the market-clearing level. Course hours: 2, students' self-study hours: 2. is able to recommend policy instruments and strategies to improve labor market performance and reduce the sources of inefficiency Wage bargaining and unions. The aim of this lecture is to present and analyse insiders-outsiders model and wage negotiations process, as well as the role of labor unions and their influence on the labor market performance. Course hours: 2, students' self-study hours: 2. Maddison (2006) reports and discusses basic data on average real incomes over modern history. Most of the uncertainty about the extent of long-term growth concerns the behavior not of nominal income, but of the price indexes needed to convert those figures into estimates of real income. Adjusting for quality changes and for the introduction of new goods is conceptually and practically difficult, and conventional price indexes do not make these adjustments well. See Nordhaus (1997) and Boskin, Dulberger, Gordon, Griliches, and Jorgenson (1998) for discussions of the issues involved and analyses of the biases in conventional price indexes.

State-Dependent Pricing Empirical Applications Models of Staggered Price Adjustment with Inflation Inertia The Canonical New Keynesian Model Other Elements of Modern New Keynesian DSGE Models of Fluctuations Problems Focuses on how to use and analyze elementary models by steadily working through the mathematical derivations one step at a time, ensuring that students fully understand each progression He’s a great writer. It’s a classic and generation after generation of economists have gone through it. You cannot list five books on economics for undergraduates and not include this book. It would be like listing the five top guitarists from the 1960s and not including Jimi Hendrix. means that the overall dispersion of average incomes across different parts of the world must have been much smaller than it is today (Pritchett, 1997). Over the past few decades, however, there has been no strong tendency either toward continued divergence or toward convergence. The implications of the vast differences in standards of living over time and across countries for human welfare are enormous. The differences are associated with large differences in nutrition, literacy, infant mortality, life expectancy, and other direct measures of well-being. And the welfare consequences of long-run growth swamp any possible effects of the short-run fluctuations that macroeconomics traditionally focuses on. During an average recession in the United States, for example, real income per person falls by a few percent relative to its usual path. In contrast, the productivity growth slowdown reduced real income per person in the United States by about 25 percent relative to what it otherwise would have been. Other examples are even more startling. If real income per person in the Philippines continues to grow at its average rate for the period 1960–2001 of 1.5 percent, it will take 150 years for it to reach the current U.S. level. If it achieves 3 percent growth, the time will be reduced to 75 years. And if it achieves 5 percent growth, as the NICs have done, the process will take only 45 years. To quote Robert Lucas (1988), “Once one starts to think about [economic growth], it is hard to think about anything else.” The first four chapters of this book are therefore devoted to economic growth. We will investigate several models of growth. Although we will examine the models’ mechanics in considerable detail, our goal is to learn what insights they offer concerning worldwide growth and income differences across countries. Indeed, the ultimate objective of research on economic growth is to determine whether there are possibilities for raising overall growth or bringing standards of living in poor countries closer to those in the world leaders. This chapter focuses on the model that economists have traditionally used to study these issues, the Solow growth model.3 The Solow model is the starting point for almost all analyses of growth. Even models that depart fundamentally from Solow’s are often best understood through comparison with the Solow model. Thus understanding the model is essential to understanding theories of growth. The principal conclusion of the Solow model is that the accumulation of physical capital cannot account for either the vast growth over time in output per person or the vast geographic differences in output per person. Specifically, suppose that capital accumulation affects output through the conventional channel that capital makes a direct contribution to production, for which it is paid its marginal product. Then the Solow model 3 The Solow model (which is sometimes known as the Solow–Swan model) was developed by Robert Solow (Solow, 1956) and T. W. Swan (Swan, 1956).Investment and the Cost of Capital A Model of Investment with Adjustment Costs Tobin’s q Analyzing the Model Implications Empirical Application: q and Investment The Effects of Uncertainty Kinked and Fixed Adjustment Costs Financial-Market Imperfections Empirical Application: Cash Flow and Investment Problems E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E60 - General Inflation, Money Growth, and Interest Rates Monetary Policy and the Term Structure of Interest Rates The Microeconomic Foundations of Stabilization Policy Optimal Monetary Policy in a Simple BackwardLooking Model Optimal Monetary Policy in a Simple ForwardLooking Model Additional Issues in the Conduct of Monetary Policy The Dynamic Inconsistency of Low-Inflation Monetary Policy Empirical Applications Seignorage and Inflation Problems an ability to analyse the implications of climate change, inequality and gender for macroeconomic theories and policies;

A perfect analogy. My second question is: what demands does this textbook, Macroeconomics, make on your mathematical knowledge for economics? Some algebra, but no calculus? implies that the differences in real incomes that we are trying to understand are far too large to be accounted for by differences in capital inputs. The model treats other potential sources of differences in real incomes as either exogenous and thus not explained by the model (in the case of technological progress, for example) or absent altogether (in the case of positive externalities from capital, for example). Thus to address the central questions of growth theory, we must move beyond the Solow model. Chapters 2 through 4 therefore extend and modify the Solow model. Chapter 2 investigates the determinants of saving and investment. The Solow model has no optimization in it; it takes the saving rate as exogenous and constant. Chapter 2 presents two models that make saving endogenous and potentially time-varying. In the first, saving and consumption decisions are made by a fixed set of infinitely lived households; in the second, the decisions are made by overlapping generations of households with finite horizons. Relaxing the Solow model’s assumption of a constant saving rate has three advantages. First, and most important for studying growth, it demonstrates that the Solow model’s conclusions about the central questions of growth theory do not hinge on its assumption of a fixed saving rate. Second, it allows us to consider welfare issues. A model that directly specifies relations among aggregate variables provides no way of judging whether some outcomes are better or worse than others: without individuals in the model, we cannot say whether different outcomes make individuals better or worse off. The infinite-horizon and overlapping-generations models are built up from the behavior of individuals, and can therefore be us Nominal Rigidities. The aim of the lecture is present the Calvo's model of staggered price contracts. Then the resulting price setting policy is used in the derivation of the New Keynesian Phillips curve. The latter is combined with the new IS curve to allow the analysis of the short run money non-neutrality. Course hours: 3; hours of student’s self-study: 4. Macroeconomics is the study of the economy as a whole. It is therefore concerned with some of the most important questions in economics. Why are some countries rich and others poor? Why do countries grow? What are the sources of recessions and booms? Why is there unemployment, and what determines its extent? What are the sources of inflation? How do government policies affect output, unemployment, inflation, and growth? These and related questions are the subject of macroeconomics. This book is an introduction to the study of macroeconomics at an advanced level. It presents the major theories concerning the central questions of macroeconomics. Its goal is to provide both an overview of the field for students who will not continue in macroeconomics and a starting point for students who will go on to more advanced courses and research in macroeconomics and monetary economics. The book takes a broad view of the subject matter of macroeconomics. A substantial portion of the book is devoted to economic growth, and separate chapters are devoted to the natural rate of unemployment, inflation, and budget deficits. Within each part, the major issues and competing theories are presented and discussed. Throughout, the presentation is motivated by substantive questions about the world. Models and techniques are used extensively, but they are treated as tools for gaining insight into important issues, not as ends in themselves. The first four chapters are concerned with growth. The analysis focuses on two fundamental questions: Why are some economies so much richer than others, and what accounts for the huge increases in real incomes over time? Chapter 1 is devoted to the Solow growth model, which is the basic reference point for almost all analyses of growth. The Solow model takes technological progress as given and investigates the effects of the division of output between consumption and investment on capital accumulation and growth. The chapter presents and analyzes the model and assesses its ability to answer the central questions concerning growth. Chapter 2 relaxes the Solow model’s assumption that the saving rate is exogenous and fixed. It covers both a model where the set of households inThis is more advanced and it’s a completely different animal because it’s a textbook with more specialized demands and a more specialized audience. A tour de force. Presenting modern macro theory rigorously but simply, and showing why it helps understand complex macroeconomic events and macroeconomic policies.” — Olivier Blanchard (Peterson Institute, Professor Emeritus at MIT, and former Chief Economist and Director of Research at the IMF)