This course will focus on ``short-run'' macroeconomics in a closed economy setting. We will build, solve, calibrate, and simulate general equilibrium models that take agent optimization, dynamics, and expectation formation seriously. Such models are called Dynamic Stochastic General Equilibrium (DSGE) models. The main focus of the course will be theoretical, with a strong focus on building, analyzing, solving, and simulating DSGE models. We will work with these models in conjunction with data, discussing how to calibrate and evaluate these models. We will then use the models to think about macroeconomic policies like Fiscal and Monetary policies.

Students are expected to perform mostly theoretical exercises and some quantitative simulations using Matlab and Dynare. Assesment however, will be based on a written theoretical exam.

 

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