PART I: ECONOMIC GROWTH (Alessandro Riboni)
Ljungqvist and Sargent 2000 Recursive Macroeconomic Theory Second edition Ch. 14
FOURTH WEEK Innovation and Growth (Romer and Aghion-Howitt). Growth Policies. Slides
Rodrik Dani The Elusive Promise of Structural Reforms Milken Institute
FIFTH WEEK Malthus and the Industrial Revolution. Structural Transformation Slides
Herrendorf, Rogerson and Valentinyi (2013) Growth and Structural Transformation NBER wpaper
Matsuyama M. (1992), “Agricultural Productivity, Comparative Advantage, and Economic Growth,” Journal of Economic Theory December, pages 317-334.
FINAL WEEK Inequality. Problem set
Piketty 2014 Capital in the 21st century (Harvard University Press, 2014)
Greenwood, Jeremy, Hercowitz, Zvi and Krusell, Per, 1997. “Long-Run Implications of Investment-Specific Technological Change,” American Economic Review, American Economic Association, vol. 87(3), pages 342-62, June.
PART II: BUSINESS CYCLES (Salvatore Nisticò)
Week 1. Introduction and overview: from the Neoclassical Synthesis to the New Neoclassical Synthesis. RBC Theory. – Slides
** Galí, chapter 1
** King, R. G., and S. T. Rebelo (1999) “Resuscitating Real Business Cycles,” in J. B. Taylor and M. Woodford (eds.), Handbook of Macroeconomics, volume 1, 927-1007
Long, J. B. and C. Plosser (1983) “Real Business Cycles,” The Journal of Political Economy, vol. 91, 39-69
Lucas, R. E., Jr. (1976) “Econometric Policy Evaluation: A Critique,” in K. Brunner and A. H. Meltzer (eds.) The Phillips Curve and Labor Markets, 19-46. Amsterdam: North-Holland.
** Woodford, M. (2009) “Convergence in Macroeconomics: Elements of the New Synthesis,” American Economic Journal: Macroeconomics, vol. 1, 267-279.
Week 2. Classical Flexible-Price Monetary Models. MIU and CIA Models. – Slides
** Galí, chapter 2
Cooley, Thomas F. and Gary D. Hansen (1989): “Inflation Tax in a Real Business Cycle Model,” American Economic Review, vol. 79, 733-748.
Lucas, R. E. Jr. and N. L. Stokey (1987) “Money and Interest in a Cash-in-Advance Economy,” Econometrica, vol. 55, 491-513
** Lucas, R. E., Jr. (1996) “Nobel Lecture: Monetary Neutrality,” Journal of Political Economy, vol. 104, 661-682.
** King, Robert G., and Mark Watson (1996): “Money, Prices, Interest Rates, and the Business Cycle,” Review of Economics and Statistics, vol 78, no 1, 35-53.
Svensson, L. (1985) “Money and Asset Prices in a Cash-in Advance Economy,” Journal of Political Economy, vol. 93, 919-944.
Week 3. Inefficient Fluctuations. The Role of Money and Nominal Rigidities. – Slides
Christiano, L. J., M. Eichenbaum, and C. L. Evans (1999): “Monetary Policy Shocks: What Have We Learned and to What End ?,” in J. B. Taylor and M. Woodfordeds., Handbook of Macroeconomics, vol. 1, 65-148
** Christiano, L. J., M. Eichenbaum, and C. L. Evans (2005) “Nominal Rigidities and the Dynamics Effects of a Shock to Monetary Policy”, Journal of Political Economy, vol. 113, 1-45.
Dhyne, E., L. Alvarez, H. Le Bihan, G. Veronese, D. Dias, J. Hoffmann, N. Jonker, P. Lunnemann, F. Rumler, and J. Vilmunen (2005), “Price Setting in the Euro Area: Some Stylized Facts from Individual Consumer Price Data,” ECB Working Paper Series, n. 524.
** Galí, J. (1999) “Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?,” American Economic Review, vol. 89, 249-271
** Gali, J., M. Gertler and J. D. Lopez-Salido (2007) “Markups, Gaps, and the Welfare Costs of Business Fluctuations,” The Review of Economics and Statistics, vol. 89, 44-59.
Nakamura, E. and J. Steinsson (2008) “Five Facts About Prices: A Reevaluation of Menu Cost Models,” Quarterly Journal of Economics, vol. 123, 1415-1464.
Week 4. The Basic Dynamic New Keynesian Model – Slides
** Galí, chapter 3
** Benigno, P. (2015) “New-Keynesian Economics: An AS-AD View,” Research in Economics, vol. 69, 503-524.
Goodfriend, M. and R. G. King (1997) “The New Neoclassical Synthesis and the Role of Monetary Policy,” in B. S. Bernanke and J. J. Rotemberg (eds.), NBER Macroeconomics Annual, volume 12, 231-296.
Galí, J. (2003) “New Perspectives on Monetary Policy, Inflation and Business Cycle”, in M. Dewatripont, L. Hansen, and S. Turnovsky (eds.), Advances in Economic Theory, Cambridge University Press.
** Galí, J. (2003) “Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment,” Journal of the European Economic Association, vol. 11, 973-1003
** Galí, J. and M. Gertler (2007) “Macroeconomic Modeling for Monetary Policy Evaluation,” Journal of Economic Perspectives, vol. 21, 25-45
Yun, T. (1996) “Nominal Price Rigidity, Money Supply Endogeneity, and Business Cycles,” Journal of Monetary Economics, vol. 37, 345-370.
Week 5. Monetary Policy Design in the New Keynesian Model. – Slides
** Galí, chapter 4
Adao B., Correia I. and P. Teles (2003), Gaps and Triangles, Review of Economic Studies, Volume 70, Number 4 (October 01, 2003)
Bullard, J. and K. Mitra (2002) “Learning About Monetary Policy Rules,” Journal of Monetary Economics, vol. 49, 1105-1130.
Clarida, R., J. Galí, and M. Gertler (1998) “Monetary Policy Rules in Practice: Some International Evidence,” European Economic Review, vol. 42, 1033-1067
** Clarida, R., J. Galí, and M. Gertler (2000) “Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory,” Quarterly Journal of Economics, vol. 115, 147-180
Taylor, J. B. (1993) “Discretion versus Policy Rules in Practice,” Carnegie-Rochester Series on Public Policy, vol. 39, 195-214.
** Taylor, J. B. (1999) “An Historical Analysis of Monetary Policy Rules,” in J. B. Taylor (ed.), Monetary Policy Rules, University of Chicago Press.
Week 6. Policy Tradeoffs and Optimal Monetary Policy in the New Keynesian Model: Discretion vs. Commitment. – Slides
** Galí, chapter 5
Benigno, P. and M. Woodford (2005) “Inflation Stabilization and Welfare: the Case of a Distorted Steady State,” Journal of the European Economic Association, vol. 3, 1185-1236.
** Clarida, R., J. Galí, and M. Gertler (1999) “The Science of Monetary Policy: A New Keynesian Perspective,” Journal of Economic Literature, vol. 37, 1661-1707.
Khan, Aubhik, Robert G. King and Alexander L. Wolman (2003): “Optimal Monetary Policy,” Review of Economic Studies, 825-860.
Kydland, F. E. and E. C. Prescott (1980) “Rules Rather than Discretion: The Inconsistency of Optimal Plans,” Journal of Political Economy, vol. 85, 473-492
** Svensson, Lars (1999) “Inflation Targeting as a Monetary Policy Rule,” Journal of Monetary Economics, vol. 43, 607-654.
Steinsson, Jòn (2003) “Optimal Monetary Policy in an Economy with Inflation Persistence,” Journal of Monetary Economics, vol. 50, 1425-1456.
Woodford, M. (2001) “The Taylor Rule and Optimal Monetary Policy,” American Economic Review, vol. 91, 232-237.