Seminar in Macroeconomic Theory

DESCRIPTION: 
Advanced macroeconomic theory. The New Classical Revolution and its critics. The new Keynesian economics. Neoclassical growth models and beyond. Infinite-horizon and overlapping generation models. Endogenous growth. The real business cycles controversy. Open economy macroeconomics.

RATIONALE: 
This seminar is designed to present an overview of issues in modern macroeconomics. Currently, the field appears to be in a state of flux. The aim is to help the student comprehend new developments and their policy implications, which, though still controversial, appear to be destined to change the field of macroeconomics in a fundamental and permanent manner. Completion of the research paper requires extensive training in mathematical/econometric software as well as the use of complex databases. Students attend additional laboratory sessions for this purpose.

LEARNING OUTCOMES: 
As a result of taking this course, the student should be able to:
1. Demonstrate detailed knowledge of the nature, causes, and implications of modern macroeconomic phenomena.
2. Analyze the macroeconomic impact of market imperfections or asymmetric information in price, quantity, or wage setting.
3. Analyze the causes of economic fluctuations or the factors determining long-run growth, and derive pertinent conclusions.
4. Evaluate the effectiveness of economic policies (monetary, fiscal or other) and the important issue of credibility in decisionmaking.
5. Evaluate the role of money in impacting the real economy and, therefore, in affecting the welfare of society.
6. Assess the implications of the international flows of commodities, factors of production, or money on stability and growth.
7. Formulate an empirically tractable macro model, collect data, estimate it, compare the results with those presented in the literature and analyze possible policy implications.

METHOD OF TEACHING 
2 AND LEARNING: 
In congruence with the learning and teaching strategy of the college, the following tools are used:
- Classes consist of lectures, case studies, and class discussions of recent articles in economic journals assigned by the instructor.
- Laboratory practice sessions: One and a half hours per week practice through software in understanding the material through real world empirical problems and self- testing assignments.
- Office hours: students are encouraged to make full use of the office hours of their instructor, where they can ask questions and go over lecture material.
- Use of a blackboard site, where instructors post lecture notes, assignment instructions, timely announcements, as well as additional resources.