Readings, Slides and Problems

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

  • Introduction to MATLAB

    Covered in a small preparatory course (6 hours) taught in:
  • 24 October, 09.00--12.00h, Computer Lab D101
  • 24 October, 13.00--16.00h, Computer Lab D101

  • Slides

    Readings

    m-files (Matlab) 


  • A two period economy: intertemporal decision making

    Slides, readings 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

      24 October 2019

      Slides          Readings
    2. Main Stylized facts of business cycles

      28 and 29 and 30 October 2019

      Slides

      Readings                  Problems                     m-files (Matlab)                    Filters Julia
             US data
    1. Solutions to models with rational expectations 31 October, 4,5 and 6 November  2019

      Slides     

      Readings

      2 Problems discussed in classes --- and ---Solutions

      A very good numerical  example  

      General problems (more demanding)

      m-files (Matlab)

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


    2. The "Real Business Cycles" Model: Introduction

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

      Slides         Readings 
    3. The "Real Business Cycles": Modelling and simulation

       12, 13, 14 and 18 November  2019

      Slides    Readings     Problems

      Simulating the RBC   m-files (Matlab)

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

        Julia files


    4. Credibility and time consistency in economic policy 

      21 November 2019

      Slides       Readings       Problems ----- Solutions 
    5. The optimal choice of policy instruments (the Poole model)

      25 November 2019

      Slides      Readings       Problems 
    6. The New Keynesian Model (NKM): Deriving the main functions

      25 and 26 November 2019

      Slides          Readings
    7. The New Keynesian Model: Optimal Monetary Policy

      Not covered this year, due to lack of time. Instead, we cover monetary policy in point 10 below.

      Slides: Optimal Monetary Policy             Readings                  Problems 


    8. The New Keynesian Model: Monetary Policy according to a Taylor Rule

      25, 26 and 27 November 2019  

      Simulating the NKM:   NKM-Matrix form         Slides: simulations        m-files (Matlab)         Julia files: 





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

      28 November 2019

      Slides

      Readings

      Julia files: ICE_Session3

      Final test:

      This test will include all material mentioned and it will take place on 17 December 2019,  14.30--17.00h, (Room: C607). 

      A computer will be available for those that may want to use JULIA 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. In 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 10 (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).