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Topics Covered in Macro Economics Notes
Unit-1: Money and Prices – Definition, History, Demand of Money, Money in Dynamic General Equilibrium, The Optimum Quantity of Money, Seigniorage, Hyperinflation and Cost of Inflation.
Unit-2: Nominal Rigidities and Economic Fluctuations – Old Keynesian Economics, Disequilibrium Economics, Imperfect Information Models, New Keynesian Models, Imperfect Competition and New Keynesian Economics, Evidence and New Direction.
Unit-3: Macroeconomic Policy – Rules vs Discretion, The Modern Case for Rules, The Lucas Critique, Monetarist Arithmetic: Link between Monetary and Fiscal Policy.
Unit-4: Investment – The Classical Approach, Adjustment Costs and Investment: q theory, Credit Rationing, Investment and Financial Markets, Banking Issues: Bank Runs, Deposit Insurance and Moral Hazard, Investment under Uncertainty and Irreversible Investment.
Unit-5: Unemployment and Coordination Failure – Efficiency wages, or why the real wage is too high – Slow Model, The Shapiro-Stiglitz shirking Model, other models of wage rigidity, Search – setup, steady-state equilibrium, coordination failure and aggregate demand externalities- Model setup, Assumptions, Definitions, Propositions.
Introduction to Macro Economics Notes
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