Macroeconomics (1 º Sem 2017/2018)

Long-Run Macroeconomics
1. Growth Theory:
- Trend and business cycle: long-run stylised facts;
- The Solow (-Swan) model;
- The Ramsey (-Cass-Koopmans) model;
- Overlapping-generations models;
- Endogenous growth.

Short-Run Macroeconomics
2. The New Classical School:
- The rational expectations hypothesis;
- Imperfect information and the Lucas supply function;
- Economic policy effectiveness and the Lucas critique;
- Time inconsistency.
3. Real Business Cycles:
- Trend and business cycle: short-run stylised facts;
- Inter-temporal optimization;
- The Ramsey model with endogenous labour supply;
- A prototype model: simulation and empirical validation.
4. The New Keynesian School:
- Predecessors: Walrasian and non-Walrasian equilibria;
- Imperfect competition in the product market;
- Nominal rigidity;
- Unemployment.
5. The New Macroeconomics:
- Problems and puzzles;
- The 'new' Keynesian-Neoclassical synthesis.