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Identical coursesAdvanced Macroeconomics I (B-KUL-D0M14A)
Aims
This course serves as a gentle introduction to modern macroeconomics. The course has four main goals: i) it introduces students to some of the modern macroeconomic workhorse models, mainly Real Business Cycle (RBC) and Dynamic Stochastic General Equilibrium (DSGE) models; ii) it gives students the tools, analytical and numerical, to solve those models; iii) it provides basic intuition for the most important macroeconomic data, empirical evidence on the features of growth and business cycles and some of the evidence on underlying micro behaviour - the emphasis will be on the stylized facts and how models can (or cannot) replicate and explain those stylized facts; iv) it puts the discussed models in the context of current macroeconomic policy issues and the policy challenges raised by the financial crisis and the subsequent great recession.
Previous knowledge
The students should ideally have taken the basic macroeconomics courses in the bachelor programme (and be familiar with the basic macroeconomic concepts and theories), as well as mathematics for economists (e.g. derivatives and optimisation).
Is included in these courses of study
- Doctoral Programme in Business Economics (Leuven)
- Master of Economics (Leuven) 60 ects.
- Master in de economische wetenschappen (Leuven) 60 ects.
- Master of Advanced Studies in Economics (Leuven) 60 ects.
- Master handelsingenieur (Leuven) 120 ects.
- Master handelsingenieur (Leuven) (Minor: Economie) 120 ects.
- Master of Business Engineering (Leuven) 120 ects.
- Master of Business Engineering (Leuven) (Minor: Economics) 120 ects.
Activities
6 ects. Advanced Macroeconomics I (B-KUL-D0M14a)
Content
The course is organized around these topics/sections:
- Basic Growth Models and Growth Facts (The Ramsey Model)
- Real Business Cycle models and some business cycle facts
- The New Keynesian Model
- Monetary Policy
- Solution methods for macroeconomic models
The course provides an introduction to graduate level macroeconomics and includes a discussion of recent research in this area. The specific content of the course may vary from year to year, and will cover such topics as growth theory, business cycles, inflation and unemployment, real business cycle theory, New Keynesian models,
financial frictions in DSGE models, monetary policy and fiscal policy.
Course material
The main book of the course is Jordi Gali (2015), Monetary Policy, Inflation, and the Business Cycle, Princeton University Press. This book concentrates on the New Keynesian model. The readings for the first part of the course will be complemented with lecture notes by prof. Eric Sims (University of Notre Dame). Additional materials include journal articles (posted on the course website).
Language of instruction: more information
The lectures, exams, student presentations and class interaction are in English.
Format: more information
The course follows a hybrid format. It consists of live classes (lectures and tutorials) and pre-recorded computer classes posted on the digital platform of the course.
Evaluation
Evaluation: Advanced Macroeconomics I (B-KUL-D2M14a)
Explanation
Two assignments during the semester and a final, written exam in the examination session.
Evaluation for the course will be based on an exam (50%), and two assignments (50%). The exam will take place in the exam period at the end of the course. It will cover all the material discussed in class (lectures and tutorials), as well as the compulsory readings. More information on the exam will be provided in class.
Information about retaking exams
The features of the evaluation and determination of grades are identical to those of the first examination opportunity, as described in the tab 'Explanation'. The assignments cannot be resubmitted – the assignment grade obtained during the semester applies also for the second examination.