Jeffrey Frankel Photo

Jeffrey Frankel

James W. Harpel Professor of Capital Formation and Growth
Federico Sturzenegger Photo

Federico Sturzenegger

Adjunct Professor of Public Policy


This course is the second in the two-course sequence on macroeconomic policy in the MPA/ID program.  Topics covered in the first half of the course include international financial integration, exchange rate models, speculative attacks, the carry trade, portfolio choice, currency risk, default risk, Debt Sustainability Analysis, and crises in Emerging Markets.  The second half of the course uses tools of dynamic optimization.  Topics covered include, among others, the Solow and Ramsey models of long-term growth, endogenous growth theory, Over-Lapping Generations models, Real Business Cycles, search theory, New Keynesian models, and Dynamic Stochastic General Equilibrium models.   

API-119 is a prerequisite. This course is open to qualified non-MPA/ID students only by permission of the instructor. May not be taken for credit with API-121 unless API-120 is taken after API-121.