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. 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.
Topics change from year to year.
In 2001-2002, the main topics are search and efficiency wage models, unions and European unemployment, human capital and income distribution, increasing returns and imperfect competition, and issues in monetary and fiscal policy. Sources of economic fluctuations. Theory and evidence on government taxation policy. Topics include saving, portfolio behavior, and financial decisions during retirement. Consult O. Blanchard.