Ph.D. Macro Theory II

ECON 60202 provides an extensive analysis of dynamic stochastic general equilibrium models of business cycles, including real business cycle and New Keynesian theories. Study of monetary and fiscal policy.

The most recent (Spring 2024) course materials are available below:

Syllabus: pdf

Lecture Notes:

  • Consumption-saving models: pdf
  • Neoclassical growth model: pdf
  • Value function iteration: pdf
  • Log linearization: pdf
  • Solving linearized DSGE models: pdf
  • Notes on Dynare: pdf
  • RBC Model: pdf
  • RBC Model (quantitative): pdf
  • Fiscal policy: pdf
  • RBC extensions: pdf
  • Wedges: pdf
  • New Keynesian model: pdf
  • Interest rate rule determinacy: pdf
  • Optimal monetary policy: pdf
  • High-level overview of New Keynesian model: pdf
  • Zero lower bound: pdf
  • Two-Agent New Keynesian (TANK) model: pdf
  • New Keynesian model with both price and wage stickiness: pdf

Problem Sets:

  • Problem Set 1: pdf
  • Problem Set 2: pdf
  • Problem Set 3: pdf
  • Problem Set 4: pdf
  • Problem Set 5: pdf
  • Problem Set 6: pdf