JEM173 - Topics in Macroeconomics

Kredit: 6
Role předmětu: Anglicky
CFS - elective
ET - povinně specializační
F,FT a B - povinně volitelný
Magisterský - vše
MEF - elective
Semestr - letní
Garanti: Mgr. Nikoloz Kudashvili
Stránky kurzu: JEM173
Literatura: Preliminary Readings

Calvo, G.: Staggered Prices in a Utility-maximizing Framework. Journal of Monetary Economics,

1983.

Corsetti, G., Muller G.: Fiscal Multipliers: Lessons from the Great Recession for Small Open

Economies. Report to the Royal Swedish Fiscal Policy Council 2015.

Lucas, R.E.: Some International Evidence on Output-Inflation tradeoffs. American Economic

Review, 1973.

Mankiw N.G., Reis R.: Sticky Information Versus Sticky Prices: A Proposal to Replace the New

Keynesian Phillips Curve. Quarterly Journal of Economics, 2002.

Sims, C.A.: Implications of Rational Inattention. Journal of Monetary Economics, 50, 2003.

Sims, C.A.: Rational Inattention: A Research Agenda. 2005.
Popis: The course will focus on the interactions of fiscal and monetary policies and implications of imperfect information in macroeconomics. In particular, models of signal extraction, sticky information, sticky prices and rational inattention will be covered. Topics on fiscal multipliers and policies at the zero lower bound will be also discussed during the semester.

The following questions will be addressed in the class:

Why do prices tend to be sticky in the long-run?

What are the benchmark models analyzing inflation-output tradeoffs?

What is the optimal price setting under the assumption of sticky prices?

What is the optimal price setting under the assumption of sticky prices?

What is the optimal price setting under the assumption of rational inattention?

What is the output responsiveness to fiscal shocks? How do we measure fiscal multipliers? How

is the size of fiscal multipliers vary depending on the exchange rate regime and public policy?

What happens to fiscal multipliers if zero lower bound on nominal interest rate binds?

Content

1. Introduction to information economics

2. Models on inflation-output trade-off

3. Models on sticky information

4. Models on sticky prices

5. Models on rational inattention

6. Fiscal multipliers and their size

Week 1
Classical monetary theory

Week 2
Introduction to New Keynesian Models

Log-linearization

Week 3
New Keynesian Models: Firm's problem; Household's problem

Week 4
New Keynesian Models, Value functions - Bellman equation

Week 5
New Keynesian Models, Calvo Price setting: aggregate and optimal price dynamics

Week 6
New Keynesian Models: Equilibrium

Week 7
New Keynesian Models: impulse response functions;
Concluding remarks on model fit

Week 8
Critical examination of the basic New Keynesian Model;
Lucas Islands Model

Week 9
Sticky prices vs Sticky info; Introduction to Information Theory

Week 10
Rational Inattention

Week 11
RI: costly information

Week 12
RI: dynamic setup

Examination dates
19.05.2017

Partneři

ČSOB
Deloitte
McKinsey & Company

Sponzoři

CRIF
EY