MA Advanced Macroeconomics, 2010

This is the website for MA Advanced Macroeconomic (ECON 41620) taught by Prof. Karl Whelan (University College Dublin). The focus in this course will be on how modern macroeconomists attempt to use theory to model and understand time series fluctuations in the major macroeconomic variables.

Here is an outline of the material for the course along with the a reading list of articles.

Here are guidelines for the final exam which will take place on May 12 at 2PM.

 

Lecture Notes

1. Introduction: Time Series and Macroeconomics

2. Vector Autoregressions (Click here for RATS Program with Monetary Policy VAR)

3. Solving Models with Rational Expectations

4. Introduction to Real Business Cycles

5. Log-Linearising and Simulating the RBC Model  (Click here for RATS Program that generates the charts.)

6. The Phillips Curve

7. The Modern New-Keynesian Model

8. Risky Lending and Banks  

9. Systemic Risk

10. Credit Rationing

 

Other Materials

Notes on VARs with Long-Run Restrictions

Technical Derivations for the NKPC

Philipp Hildebrand: Is Basel II Enough? The Benefits of a Leverage Ratio

Documentation for the Basle 2 Internal Ratings Based model.

Raghuram Rajan: Has Financial Development Made the World Riskier? Link is to conference website, so you can also see the responses from other participants.

Joshua Coval and Erik Stafford: Asset Fire Sales (and Purchases) in Equity Markets

Tobias Adrian and Hyun Song Shin: Liquidity and Leverage

Andrew Crockett: Marrying the Micro- and Macro-Prudential Dimensions of Financial Stability

Douglas Diamond and Raghuram Rajan: The Credit Crisis: Conjectures about Causes and Remedies

Karl Whelan: Containing Systemic Risk (Paper submitted to European Parliament.)

Bank of England RAMSI model

Hyun Song Shin VoxEU piece on financial regulation.

Joseph Stiglitz and Andrew Wess: Credit Rationing in Markets with Imperfect Information