This is an advanced course in macroeconomics at the graduate level. The first fifth of the course [a continuation of API-120], covers carry trade, risk, debt dynamics, and emerging market crises. The main part of the course begins with a presentation of the main two macroeconomic models, the "representative agent model" and the "overlapping generations model," which serve as the basic tools in the field. Next the course applies these two models to study several key macroeconomic issues, such as economic growth, consumption, investment, and output fluctuations, as well as fiscal and monetary policy.
This course is open to non-MPA/ID students only by permission of the instructor. May not be taken for credit with API-121 unless API-119 is taken after API-121.
Prerequisites: Multivariate calculus and constrained static and dynamic optimization; differential equations; and intermediate macroeconomics.