Descriptif

This course is a graduate level introduction to macroeconomics, with a special focus on business cycle issues. The
level is rather advanced, but no prior knowledge in the field is assumed. The first lecture reviews the traditional
IS-LM AD-AS model, which is insightful but suffers from weak foundations. The rest of the course is dedicated to
the more rigorous approach to macroeconomics that has been adopted since the 1970s. Students are initially
taught standard techniques to solve dynamic optimization problems. These techniques are then applied to
address a wide number of issues within a common framework that emphasizes the importance of
microfoundations, rational expectations, and general equilibrium.

There is no textbook that covers all the material of the course. Useful textbooks nevertheless include:
 Blanchard, O.J. and Fisher, S. (1989), Lectures on Macroeconomics, Cambridge, MA: MIT Press
 Gali, J. (2015), Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian
Framework, 2nd Edition, Princeton, NJ: Princeton University Press
 Ljungqvist, L. and Sargent, T.J. (2018), Recursive Macroeconomic Theory, 4th Edition, Cambridge, MA: MIT
Press
 Miao, J. (2020), Economic Dynamics in Discrete Time, 2nd Edition, Cambridge, MA: MIT Press
 Romer, D. (2018), Advanced Macroeconomics, 5th Edition, New-York, NY: McGraw-Hill
 Walsh, C.E. (2017), Monetary Theory and Policy, 4th Edition, Cambridge, MA: MIT Press