Programme PhD Term III Academic Year 2021-22

Course title Macroeconomics ? II Area Economics Credits 0.75

Prof. Mohsen Mohaghegh

Course Description & Objectives
“Having looked at monetary policy from both sides now, I can testify that central banking in practice is as much art as science. Nonetheless, while practicing this dark art, I have always found the science quite useful." -Alan S. Blinder

This course builds on and is a direct continuation of Macroeconomics-I course. Here, the emphasis would be explicitly on modelling. We will work through a sequence of standard models to understand the dynamics and comovements of aggregate variables like consumption, output, inflation etc. We will use dynamic programming as the basic tool and hence, will develop the necessary methods during the course. The goal of this course is to introduce the course-participants to the basic tools used in modern macroeconomics. We will also use computer programs to simulate the models and test their implications on data. I will provide Matlab codes for simulating the models. Data sources will be indicated in the class.