The macroeconomic implications of imperfections in labor markets, goods markets, credit and financial markets. The role of nominal rigidities. Class size limited. 14.454 Units arranged Advanced subject on topics of current research interest in macroeconomics. Consult O. Blanchard.
Topics change from year to year.
In 2001-2002, the main topics are complete markets and business cycles, representative agent models, incomplete markets and business cycles, financial markets, restructuring and reallocation, sunk costs and incomplete contracts, private information, and herd behavior. In 2001-2002, the main topics are Real Business Cycle models, optimal fiscal and monetary policy, heterogeneous agents and incomplete markets, endogenous growth and sources of economic fluctuations, recursive methods and robust control in macro. Introduction to current research in public economics, with a focus on the impact of taxation and government policy on household behavior. Topics include saving, portfolio behavior, and financial decisions during retirement. Introduction to the theory of international trade and finance with applications to current policy issues.