Macroeconomics IV (Mathematical Economics and Econometrics program)

Description

This course is the last in the Macroeconomic sequence. First, we will consider Keynesian view of fluctuations (IS-LM model). In this course, we will introduce dynamics in the static models. Students will learn how expectations are formed and how they affect equilibria in the models. In particular, on the example of cobweb model and IS-LM model the students will study the price dynamics in the under different expectations hypotheses, including static expectation, adaptive expectations, rational expectations and adaptive learning. The second half of the course is devoted to the price stickiness, inflation and monetary policy.