Microfoundations of Macroeconomics Training

Week 1: One-Period Model of the Macroeconomy: Representative Consumer and Firms, Government, Competitive Equilibrium, and Optimal Solutions.

Week 2:Search and Unemployment: Theory and Practical Implications

Week 3:Two-Period Model of Macroeconomy: The Dynamics of Consumption-Savings Decision and Credit Markets: Consumption Smoothing; Euler’s Condition; Implications for consumption theory in macroeconomics.

Week 4:Intertemporal characteristics of taxation and role of government. Theoretical set-up of Ricardian equivalence. Credit Market Equilibrium, Ricardian Equivalence, and Burden of the Government Debt.

Week 5:Credit market imperfections and role of asymmetry!

Week 6:Basics of monetary economics and monetary model in intertemporal set-up. MonetaryNeutrality, Surprise models and the cases of zero lower bound and quantitative easing.

Week 7:New Keynesian and New Monetarist Models; Flexible vs Sticky Prices

Week 8:Understanding Open economy using Intertemporal Framework; Exchange Rate Dynamics; Capital Controls

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