Syllabus

1. Mathematical and Statistical recap

2. The main stylized facts of business cycles

3. Solving Rational Expectations models

Midterm test

4. The Real Business Cycle model

5. Credibility and commitment in monetary policy

6. The optimal choice of policy instruments **

7. The New Keynesian model

Final test

** This point is expected not to be covered this year due to a lack of time.

Textbook:

There is no adopted textbook for this course. Lecture notes will be provided for each topic. Nevertheless, good companion textbooks can be those of:

Gali, J. (2015). Monetary Policy, Inflation, and the Business Cycle, 2nd ed., Princeton University Press.
Wickens, M. (2012). Macroeconomic Theory: A Dynamic General Equilibrium Approach, 2nd ed., Princeton University Press
Kamiński, B. and Szufel, P. (2018). Julia 1.0 Programming Cookbook. Packt Publishing.

Evaluation regimes:

Option A:

1. Midterm test: one test covering the materials taught during the first 3 topics of the syllabus, weighing 35% on the final grade.

2. A final test covering all materials taught in this course (more emphasis on the last 3 points in the syllabus), with a weight of 35% on the final grade.

3. A group essay based on a topic closely related to the syllabus with a weight of 30% on the final grade.

4. The grade in any of the moments above cannot be lower than 8 points (on a scale from 0 to 20 points)

Option B:

1. One final exam: weight of 100% on the final grade.

2. Covers all materials taught during the entire semester.

3. There will be a re-sitting test for those that fail in option A or/and option B. This test includes all materials and represents 100% of the final grade.