Syllabus

Course Description

This is the second course in the four-quarter graduate sequence in macroeconomics. Its purpose is to introduce the basic models macroeconomists use to study fluctuations.The course is organized around nine topics/sections:

1. Fluctuations and Facts
2. The basic model: the consumption/saving choice
3. Allowing for a labor/leisure choice (the RBC model)
4. Allowing for non trivial investment decisions
5. Allowing for two goods
6. Introducing money
7. Introducing price setting
8. Introducing staggering of price decisions and Applications to fiscal and monetary policy

Related Courses at MIT

• Principles of Macroeconomics (14.02)
• Intermediate Macroeconomic Theory (14.06)
• Macroeconomic Theory I (14.451)
• Macroeconomic Theory III (14.453)
• Macroeconomic Theory IV (14.454)
• Advanced Macroeconomics I (14.461)
• Advanced Macroeconomics II (14.462)

Grading

Grading for this course is based completely on the final exam.