14.461
Advanced Macroeconomics I
Advanced subject in macroeconomics that seeks to bring students to the research frontier. Topics vary from year to year, covering a wide spectrum of classical and recent research. Topics may include business cycles, optimal monetary and tax policy, monetary economics, banking, and financial constraints on investment and incomplete markets.
Fall 2012
Topics
- Fiscal policy I: Optimal taxation with heterogeneity and idiosyncratic uncertainty
- Public liquidity
- Default and sovereign debt
- Monetary policy with nominal rigidities
- Liquidity traps
- Fiscal policy II: Government spending
- Time inconsistency and reputation
- Borrowing constraints, investment, and fluctuations
- Inefficient insurance
- Employment and unemployment dynamics with wage rigidity
- Classic coordination games in macroeconomics
- Global games, with applications to crises
- Beauty contests, social value of information, and information aggregation
- Expectations and the business cycle
- Informational frictions and monetary policy
Readings
- Additional Readings
- Hellwig, Christian, Arijit Mukerji, et al. “Self-Fulfilling Currency Crises: the Role of Interest Rates.” American Economic Review 96, no. 5 (2006): 1769–87.
- Vives, Xavier. Chapter 3–5 in Information and Learning in Markets: The Impact of Market Microstructure . Princeton University Press, 2008. ISBN: 9780691127439.
- Angeletos, George-Marios, and Jennifer La’O. “Noisy Business Cycles.” In NBER Macroeconomics Annual 2009 . University of Chicago Press Journals, 2010. ISBN: 9780226002101.
- Mankiw, N. G., and R. Reis. “Imperfect Information and Aggregate Supply.” Handbook of Monetary Economics. 2009.
- Melosi, L. “Estimating Models with Information Frictions.” Mimeo, LBS (2011).
- Sims, Christopher. “Rational Inattention and Monetary Economics.” In Handbook of Monetary Economics, Volume 3B . North Holland, 2010. ISBN: 9780444534545.
Prerequisites & course information
Prereq: 14.122 and 14.452 G (Fall) 5-0-7 units
Sources
- Course catalogue ↗2026–2027
- MIT OpenCourseWare ↗Fall 2012
- MIT OCW calendar ↗
- MIT OCW readings ↗
- MIT OCW syllabus ↗
- Historical MIT OpenCourseWare offering. Named reading entries and schedule topics are automatically extracted from the linked source pages.