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Advanced macroeconomics (QEM)


Spring semester 2014

This course is made of two parts. One part will be taught by me and the other one by Antoine d'Autume.

My part

This course aims at introducing a benchmark framework of general equilibrium. The lectures will analyze simple static models characterized by 3 goods: labor, money and consumption. This simple framework is used to reinterpret some Keynesian features in a Walrasian context of general equilibrium. This will allow us to discuss issues related to unemployment -- under a macroeconomic perspective. Moreover, we will discuss the implications of market power as well as the ones related to coordination failures. Finally, the course will study the fundamentals at the roots of nominal rigidities and set an open economy general equilibrium framework.

The course is taught in English and focuses on five main topics -- that are listed here in the following. Lectures will follow the structure of lecture notes -- that will be provided to students. All material will be either distributed in class or uploaded in the following.

Find here
in the draft of the syllabus a list of suggested manuals, additional references as well as some (very) optional references.


a written examination is planned. The final mark will account also for the 2 problem sets and for the participation to the lectures.

Office hours:

on Tuesday, by appointment.

Past exams:


Please find here in the following a draft of the program of the course. Notice however that the specific details of the program may be updated during the course consistently with the peculiar needs of the class.

1 General equilibrium with perfect competition
i )The global equilibrium in a Keynesian world.
ii) Perfect competition and fixed prices.
- Notes: “ Perfect competition and fixed prices
- Problem Set 1
. Due by March the 10th!!!

2 Imperfect competition, market power and underemployment
i) Introduction to imperfect competition. (if you are not confortable with the basics, you need to read the suggested references!!)
ii) Imperfect competition, market power and underemployment. (work on my notes and the book of Wickens!!)
iii) An application: The Blanchard and Kyiotaki model.
- Notes: “ Imperfect competition, market power and underemployment”
- Problem Set 2.

3 Fiscal policy, public spending and imperfect competition
i) The imperfectly competitive model with public spending
ii) Income effects and mark up effects on labor supply
Notes: “ Fiscal policy, public spending and imperfect competition

4 Coordination failures, nominal rigidities and monetary policy
i) Imperfect competition and coordination failures
ii) The fundamentals at the roots of nominal rigidities
Lecture notes: “Coordination failures, nominal rigidities and monetary policy

5 From general equilibrium to RBC modelling

i)The general setting
Lecture notes: "From general equilibrium to RBC modelling"
- Problem set

For some debate on the "modern macroeconomic paradigm", see the following references.

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