Readings, Slides and Problems

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Materials not covered in classes ... but very, very useful

  • Introduction to MATLAB

    Covered in 3 sessions during the preparatory week in November as follows.
  • 08 November 2017, 10.00--12.00h, Computer Lab D211
  • 15 November 2017, 10.00--12.00h, Computer Lab D211
  • 22 November 2017, 10.00--12.00h, Computer Lab D211

  • Slides

    Readings

    m-files (Matlab) 

    more m-files


  • A two period economy: intertemporal decision making

    Slides, reading and solutions to problems are here just for revision. This material will not not covered in classes, because it has already been extensivelly covered in two macro courses in the bachelor degree in economics at ISCTE-IUL (Macro II and Modern Macro). All the students enrolled in this course should master this material. If not come and talk to me.

    Slides

    Readings

    Problems ...and... Solutions

  • Introduction to Dynamic Systems

    These slides are here just for revision. Knowledge about this material is crucial to the understanding of the topics that we discuss in our macroeconomics course. Unfortunatelly, this material will not not covered in classes, because it has already been extensivelly covered in two macro courses in the bachelor degree in economics at ISCTE-IUL (Macro II and Modern Macro) and in a recitation by Catarina Roseta Palma in the September preparatory sessions. All the students enrolled in this course should master this material. If not come and talk to me.

    Slides

    Readings




    Main topics covered in classes


    1. The current state of macroeconomics

      23 October 2017

      Slides

      Readings


    2. Main Stylized facts of business cycles

      24 and 25 October 2017

      Slides

         

      Readings

      Problems --- Solutions (later)

      m-files (Matlab)


    3. Solutions to models with rational expectations

      26, 30 and 31  October 2017

      Slides     

      Readings

      Some small notes (possibly useful)   

      2 Problems discussed in classes --- and --- Their solutions

      A very good example (only up to slide 12) 

      Problems --- Solutions (later)

      Some old problems (sorry in Portuguese) --- and --- Their solutions


    4. (4.1) The "Real Business Cycles" Model: Introduction

      Not covered in this course (already covered in the Economic Growth course)

      Slides

      Readings


      (4.2) The "Real Business Cycles": Modelling and simulation

      2, 6 and 7 November  2017

      Slides

      Readings

      Problems --- Solutions (later)

      m-files (Matlab)

      New m file (Correlation_Cross-Correlation and Standard deviation-RBC.m)




    5. Credibility and time consistency in economic policy

      8, 9 and 13 November 2017

      Slides

      Readings

      Problems --- Solutions 

    6. The optimal choice of policy instruments (the Poole model)

      Not covered in this course (lack of time)

      14, and 15  November 2017

      Slides

      Readings

      Problems --- Solutions (later)


    7. The New Keynesian Model: Deriving the main functions

      16, 20 and 21 November 2017

      Slides

      Readings


    8. The New Keynesian Model: Optimal Monetary Policy .

      22 November 2017

      Slides

      Readings

      Problems --- Solutions (later)

      m-files (Matlab)

      New m file (Correlation_Cross-Correlation and Standard deviation-NMK.m)


    9. Central banks, commitment, credibility and the financial crisis .

      23 November 2017

      Slides

      Readings


      Final test:
      This test will include all material mentioned and it will take place on 11 December 2017, 11.00--13.00h, (Room: B201)

      A computer will be available for those that may want to use Matlab during the test

      Useful information about the final test                                                                                                                                                     

      Final test October 2014   here    Solutions  here

      Final test December 2015   here

      Final test December 2016   here

      Exam October 2014   here

      Exam January 2016   here


      Topics for the Group Essay
    10. For the current year the options will be (1+2) or (1+4)
      1. Answer the problem set in point (2),  but for a larger set of macroeconomic variables. (Stylized facts of business cycles)
      2. Answer the problem set in point (4.2) (simulation of the Real Business Cycle Model) 
      3. Answer question (3) of the problem  set in point (6).  (The Poole Model)
      4. Answer the problem set in point 8 (simulation of the New Keynesian Model)
      5. Study the evidence about the Taylor Rule for the US and the EuroZone. (Monetary Policy Rules)
      6. Discuss the problem of unorthodox monetary policy (Quantitatve Easing) in our current times (Zero Lower Bound on interest rates).