Most central banks and other policy institutions rely on modern macroeconomic models. In this course, you will learn the foundations for these models: how to build, and solve, such general equilibrium models. You will understand how fiscal and monetary policy affect households, firms, and the aggregate economy. Furthermore, you will be equipped to think about policy questions. How do you stimulate the economy in a recession? How does forward guidance work?
The course will cover the following topics in macroeconomics:
- Basics of modern macroeconomics: individual optimization
- How do markets clear: general equilibrium
- Planning for the future: dynamic problems
- Consumption and savings
- Real business cycle
- Economic growth
- Government spending and fiscal policy
- Inflation and monetary policy
- 2008 Great recession, and 2020 Covid Economics