That’s the interesting thing with Romer. He manages to give an introduction to the state-of-the-art theory in every single aspect of macroeconomics. The book has 14 chapters and each chapter is a research agenda in economics. Which is most active really depends on the year. Some years it’s unemployment, some years it’s fiscal policy, some years it’s monetary policy, but that doesn’t mean that the others are not in fashion. It’s just that sometimes one area might get more attention than the others, which may be related just to the agenda at particular academic journals as much as anything else. But every chapter is representative of a very active field in macroeconomics. A Model of Imperfect Competition and Price-Setting Are Small Frictions Enough? Real Rigidity Coordination-Failure Models and Real NonWalrasian Theories The Lucas Imperfect-Information Model Empirical Application: International Evidence on the Output-Inflation Tradeoff Problems A Baseline Case: Fixed Prices Price Rigidity, Wage Rigidity, and Departures from Perfect Competition in the Goods and Labor Markets Empirical Application: The Cyclical Behavior of the Real Wage Toward a Usable Model with Exogenous Nominal Rigidity This terrifically useful text fills the considerable gap between standard intermediate macroeconomics texts and the more technical text aimed at PhD economics courses. The authors cover the core models of modern macroeconomics with clarity and elegance, filling in details that PhD texts too often leave out. At the same time, the authors draw on their own extensive policy experience to provide thoughtful policy motivation and historical context throughout. Advanced undergraduates, public policy students and indeed many economics PhD students will find it a pleasure to read, and a valuable long-term resource.” — Kenneth Rogoff (Thomas D. Cabot Professor of Public Policy and Professor of Economics at Harvard University, former Chief Economist and Director of Research at the IMF) Romer is very advanced undergraduate level or early postgraduate. If you study macroeconomics at an advanced level, you will come across this book. If you want to have a comprehensive and broad perspective of what macroeconomic theory is today, in the broadest and most concise form, this is the book.

Macroeconomic policy is one of the most important policy domains, and the tools of macroeconomics are among the most valuable for policy makers. Yet there has been, up to now, a wide gulf between the level at which macroeconomics is taught at the undergraduate level and the level at which it is practiced. At the same time, doctoral-level textbooks are usually not targeted at a policy audience, making advanced macroeconomics less accessible to current and aspiring practitioners. Godley, W. and Lavoie, M. (2012). Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth, Basingstoke: Palgrave Macmillan, 2nd edition. He has 13 or 14 chapters. Each chapter is a fundamental section of macroeconomics, starting with economic growth, going on to endogenous growth and the economics of ideas, economics of information, economics of monetary policy, fiscal policy, employment—you name it. It’s the most comprehensive, and it’s accessible. Macroeconomic concepts and theories are among the most valuable for policymakers. Yet up to now, there has been a wide gap between undergraduate courses and the professional level at which macroeconomic policy is practiced. Shapiro-Stiglitz model of efficiency wages. The aim of this lecture is to analyse Shapiro-Stiglitz model, and explain the concept of principal-agent problem of imperfect monitoring of workers' effort. Course hours: 3, students' self-study hours: 3.Provides ideal coverage for intermediate students looking to develop a more advanced level of understanding of macroeconomics Brookings Papers on Economic Activity, Spring 2019. Posted with the Permission of Brookings Institution Press. It is a way of recasting any dynamic problem in macroeconomics in a specific analytical way, that is called a recurse. It is the book over which generations of PhD students in macroeconomics have sweated blood. And any good book for PhD students in macroeconomics should be stained with sweat and blood, because it needs to be highly technical. This book is. Rules vs Discretion Debate. The aim of the lecture is to discuss the time inconsistency problem and the solutions to inflation bias. Course hours: 2; hours of student’s self-study: 4.

David Romer is the Royer Professor in Political Economy at the University of California, Berkeley, where he has been on the faculty since 1988. He is also co-director of the program in Monetary Economics at the National Bureau of Economic Research. He received his A.B. from Princeton University and his Ph.D. from the Massachusetts Institute of Technology. He has been on the faculty at Princeton and has been a visiting faculty member at M.I.T. and Stanford University. At Berkeley, he is a three-time recipient of the Graduate Economic Association’s distinguished teaching and advising awards. He is a fellow of the American Academy of Arts and Sciences, a former member of the Executive Committee of the American Economic Association, and co-editor of the Brookings Papers on Economic Activity. Most of his recent research focuses on monetary and fiscal policy; this work considers both the effects of policy on the economy and the determinants of policy. His other research interests include the foundations of price stickiness, empirical evidence on economic growth, and asset-price volatility. He is married to Christina Romer, with whom he frequently collaborates. They have three children, Katherine, Paul, and Matthew. Galí, J. (2015). Monetary Policy, Inflation and the Business Cycle, Princeton University press, 2nd edition. Note: Since the many formula in the EPUB and Mobi versions of the book are displayed as images, we recommend using a medium-sized font for reading. Formulae font may not match well with the main text font if very small or very large text font sizes are chosenThis is one of the core modules of the MSc Economics programme. Using a political economy and pluralist perspective, the module builds on and expands the Macroeconomics module of Term 1. It provides a critical overview and in-depth analysis of macroeconomic theories and methods, focusing on a variety of issues that are at the centre of the contemporary debates on macroeconomic policies. These include mainstream and heterodox macroeconomic modelling approaches, shadow banking and financialisation, distribution and growth, the macroeconomics of climate change, fiscal and monetary policies for climate mitigation, financial globalisation, crises and the role of gender in macroeconomics. This is more advanced and it’s a completely different animal because it’s a textbook with more specialized demands and a more specialized audience. Investment and the Cost of Capital A Model of Investment with Adjustment Costs Tobin’s q Analyzing the Model Implications Empirical Application: q and Investment The Effects of Uncertainty Kinked and Fixed Adjustment Costs Financial-Market Imperfections Empirical Application: Cash Flow and Investment Problems Human capital theory and education. The aim of this lecture is to present links between education and labor market from the perspective of the human capital theory. Course hours: 2, students' self-study hours: 3.

Taylor, L. (2004). Reconstructing Macroeconomics: Structuralist Proposals and Critiques of the Mainstream. Cambridge, Massachusetts and London: Harvard University Press. Labor market regularities in the short and long run. The aim of this lecture is to present basic regularities (stylized facts) of the labor market functioning in the long and short run in developed and developing countries. Course hours: 1, students' self-study hours: 1. Monetary Policy Rules and Instruments. The aim of the lecture is to present monetary policy rules followed by monetary authorities in practice: Taylor rule and inflation targeting. The second objective is to discuss the optimal choice of monetary instrument and the constraints that uncertainty and lags impose on the central bank policy. Course hours: 3; hours of student’s self-study: 4.Search and matching theory. The aim of this lecture is to present search and matching theory of the labor market and the flow concept into the labor market. Course hours: 4, students' self-study hours: 4. an ability to analyse the assumptions, methodological underpinnings and implications of macroeconomic models; So, it’s really narrow, but it’s still a fundamental book. I say narrow, but of course, monetary policy is one of the biggest sub-fields in macro. And, especially if you are interested in macroeconomic policy, then monetary policy is one of the two key things you need to have. It’s a classic in central banking and monetary policy. Classical and Keynesian Macroeconomic Theory. The aim of the lecture is to present the classical and keynesian macroeconomic models in a formal way and to prepare grounds to discuss the new models in keynesian and classical tradition. Course hours: 2; hours of student's self-study: 4.

role of money growth in causing inflation and by investigating the effects of money growth. It then considers optimal monetary policy. This analysis begins with the microeconomic foundations of the appropriate objective for policy, proceeds to the analysis of optimal policy in backward-looking and forward-looking models, and concludes with a discussion of a range of issues in the conduct of policy. The final sections of the chapter examine how excessive inflation can arise either from a short-run output-inflation tradeoff or from governments’ need for revenue from money creation. Chapter 12 is concerned with fiscal policy and budget deficits. The first part of the chapter describes the government’s budget constraint and investigates two baseline views of deficits: Ricardian equivalence and tax-smoothing. Most of the remainder of the chapter investigates theories of the sources of deficits. In doing so, it provides an introduction to the use of economic tools to study politics. Finally, a brief epilogue discusses the macroeconomic and financial crisis that began in 2007 and worsened dramatically in the fall of 2008. The focus is on the major issues that the crisis is likely to raise for the field of macroeconomics.1 Macroeconomics is both a theoretical and an empirical subject. Because of this, the presentation of the theories is supplemented with examples of relevant empirical work. Even more so than with the theoretical sections, the purpose of the empirical material is not to provide a survey of the literature; nor is it to teach econometric techniques. Instead, the goal is to illustrate some of the ways that macroeconomic theories can be applied and tested. The presentation of this material is for the most part fairly intuitive and presumes no more knowledge of econometrics than a general familiarity with regressions. In a few places where it can be done naturally, the empirical material includes discussions of the ideas underlying more advanced econometric techniques. Each chapter concludes with a set of problems. The problems range from relatively straightforward variations on the ideas in the text to extensions that tackle important issues. The problems thus serve both as a way for readers to strengthen their understanding of the material and as a compact way of presenting significant extensions of the ideas in the text. The fact that the book is an advanced introduction to macroeconomics has two main consequences. The first is that the book uses a series of formal models to present and analyze the theories. Models identify particular 1 Shapiro, Stiglitz (1984) 'Equilibrium Unemployment as a Worker Discipline Device', American Economic Review , Vol. 74, pp. 433-444.

Assessment

Monetary Growth Theory II: Money in the Utility Function. The aim of the lecture is to present the Sidrauski's model of money in the utility function. Course hours: 2; hours of student’s self-study: 4. Nominal Rigidities. The aim of the lecture is present the Calvo's model of staggered price contracts. Then the resulting price setting policy is used in the derivation of the New Keynesian Phillips curve. The latter is combined with the new IS curve to allow the analysis of the short run money non-neutrality. Course hours: 3; hours of student’s self-study: 4.