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Courses - Spring 2023
ECON
Economics Department Site
ECON747
The Macreconomics of Imperfect Capital Markets
Credits: 3
Grad Meth: Reg, Aud
Prerequisite: ECON602 and ECON601; or (ECON604 and ECON603); or permission of BSOS-Economics department.
Restriction: Must be in one of the following programs (Economics (Master's); Economics (Doctoral)).
Credit only granted for: ECON698K or ECON747.
Formerly: ECON698K.
A field course designed for students who have completed introductory graduate course work in macroeconomics. The course is built around three main ideas. First, its objective is to understand the role of financial markets for fluctuations in the macroeconomy. More specifically, starting from a complete markets benchmark, we study canonical types of credit market frictions that give rise to macroeconomic effects. Second, the course aims to enhance the students' toolkit to carry out state-of-the-art research in macroeconomics in general. It provides plenty of practical exercise to take models (usually DSGE models with financial frictions) to the computer. Third, alongside the methodological content, we revisit empirical facts on the regularities of financial variables, the 2008-09 global financial crisis and the Covid-19 recession.