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.
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 -
The course is taught in English and focuses on five main topics -
a written examination is planned. The final mark will account also for the 2 problem sets and for the participation to the lectures.
on Tuesday, by appointment.
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.
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.
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
For some debate on the "modern macroeconomic paradigm", see the following references.