Macro I

II Term January - March

Macroeconomics I (Prof. Tullio Jappelli - Prof. Salvatore Capasso)

The Solow growth model. The Ramsey-Cass-Koopmans model. The Diamond model. Cross country income differences. Consumption under uncertainty: permanent income/random walk hypothesis. Investments: a model of investment with adjustment costs, Tobin’s Q. Real business cycle theory: a baseline Real-business Cycle model. Inflation and monetary policy: inflation money growth and interest rates, the dynamic inconsistency of low-inflation monetary policy, addressing the dynamic inconsistency problem.

Bibliography:

David Romer, "Advanced Macroeconomics", fourth edition, Irwin/McGraw-Hill, 2001;
Oliver Blanchard and Stanley Fisher, "Lectures on Macroeconomics", MIT Press, 1990;
Robert Barro and Xavier Sala-i-Martin, "Economic Growth", McGraw-Hill, 1995;
Philippe Aghion and Howard Howitt, "The Economics of Growth" MIT Press, 2009.