Macroeconomics (advanced level) (Alexey Devyatov)
About the cycle of video lectures
This is a Master’s program level course in macroeconomics for students, who have strong knowledge of Mathematics, but little or no background in Economics. The course consists of two parts.
First, students will be familiarized with basic principles of macroeconomics to build up intuitive understanding of the subject matter.
Second, students will be taught a wide range of work-horse macroeconomic models in growth theory, monetary theory and policy, as well as real business cycle and sticky price models. Students will also be familiarized with numerical implementation of macroeconomic models in DYNARE software package.
The course consists of 8 topics and includes 26 video lectures.
Total cycle time - 30 hours.
Block 1. Princeples of Economics. Key economic indicators (3 video lectures)
Ten principles of economic theory. What economists do. Gross domestic product. Real GDP and GDP deflator. Consumer price index and inflation. Unemployment. Interest rates.
Block 2. Savings, investment and economic growth (2 video lectures)
Economic growth: stylized facts. Savings. Investment. Human capital. Economic policy and growth. Research and development. Trade barriers and trade agreements. Financial markets. The role of institutions.
Block 3. Open economy and international trade (5 video lectures)
Exports, imports, and current account. Capital flows. Nominal and real exchange rates. Supply and demand for foreign currency. Exchange rate regimes. Debt market and exchange rates. The benefits of trade.
Block 4. Introduction to business cycles (2 video lectures)
Stylized facts: procyclical and countercyclical indicators. Aggregate demand and aggregate supply curves. Short-run vs. long-run aggregate supply. Classical and Keynesian approach to business cycles. Factors, which move AD and AS curves. Government policy and aggregate demand. Output and unemployment. Phillips curve.
Block 5. Elements of growth theory (6 video lectures)
Solow model. Transitional dynamics in Solow model. Convergence: theory and observations. One-sector optimal growth model. Endogenous growth models: the AK model, learning by doing, knowledge spillovers, human capital. Horizontal and vertical innovations.
Block 6. Money, inflation and optimal monetary policy (4 video lectures)
Quantity theory of money. Neutrality and superneutrality of money. Sidrauski model. Optimal monetary policy in Sidrauski model. Friedman rule. Cagan model of hyperinflation. The role of expectations in monetary dynamics.
Block 7. Neo-classical business cycle models (2 video lectures)
Typical real business cycle model. RBC model with monopolistic competition. Calibration. Implementation in DYNARE software package. Imperfect information and business cycles.
Block 8. Neo-Keynesian business cycle models (2 video lectures)
Wage and price rigidity. Sticky price business cycle model with monopolistic competition. Implementation in DYNARE software package.