Advanced Macro Economics

S3 Program

Nurul Anwar

UNSOED

2019
 PERBEDAAN PEMBELAJARAN S1, S2, S3
Aspek S1 S2 S3

SKS/WAKTU 144 – 160 (4-7 th) 36 SKS (2-4 th) 3,5 – 5 thn

Mengenal beberapa Mempelajari ilmu secara lebih Mandiri, detail dan

FUNGSI/ teori/ilmu dan cara dalam dan detail pereksionis
TUJUAN belajar sistematis
SYARAT Skripsi (merumuskan Thesis (mengembangkan ilmu Disertasi (terobosan baru
KELULUSAN penalaran ilmiah satu yang dipilih), mengembangkan untuk kemungkinan teori
fenomena), metode. epistemologi ilmu baru), menghasilakan
mengaplikasikan metode. yang meliputi sumber, sarana, metode. ontologi ilmu
aksiologi ilmu dan tatacara menggunakan yang meliputi apa hakikat
(penggunaan ilmu) sarana tersebut untuk atau bentuk yang hakiki
mencapai pengetahuan ilmiah dari ilmu
LULUSAN Lebih ke hal taktis . Siap Lebih ke strategis. siap Kemampuan meneliti
memasuki dunia kerja berinovasi dalam profesi untuk memecahkan
masalah. siap meneliti
dan mempublikasi
pengetahuan baru.
 Course Descriptions
• This is an advanced course in Macroeconomics. The course will
cover a series of frontier research related to economic growth
and development, asset pricing and monetary policy,
international finance and trade, and other contemporary issues
on income and firm distribution. In this course we study the
aggregate economy by developing theoretical models with solid
micro foundations, and this implies that: i) we use models
populated by agents (households, firms, and government) that
optimize their own behavior, and ii) the implied equilibrium
allocations that result from the behavior of agents satisfy
aggregate consistency conditions (essentially market clearing).
Understanding the concept of equilibrium will thenbe the single
most important theoretical tool of the course.
 Prerequisite
• Students should be familiar with basic mathematics such as
differentiation and integration techniques and basic statistics like
OLS regressions. As far as macroeconomics is concerned,
familiarity with an intermediate macroeconomics text such as
Mankiw, G., Macroeconomics(Worth Publishers)or Blanchard, O.
Macroeconomics(Prentice Hall), or any other intermediate
undergraduate macroeconomic textbook is desirable.
• For students with no or a little background in macroeconomics, a
number of chapters from the book of Mankiw will be selected
which gives the basic building blocks of the corresponding
chapter in Sorensen and Whitta-Jacobsen.
 Objective
• The course is designed to teach senior undergraduates their way
around the professional, highly technical literature, to provide a
sketch of approaches and positions on issues of macroeconomic
policy and theory, and to provide as thorough a grounding as can
be provided in a single semester to the models and tools
macroeconomists use.
• Macroeconomic analysis is primarily concerned with two issues:
(i) developing positive models in order to understand the
dynamics of key macroeconomic variables such as output,
employment, unemployment, inflation, interest rates, etc.; and
(ii) deriving normative prescriptions for macroeconomic
policymaking, in particular regarding the proper setting of fiscal
and monetary policies.
 Course Outline

1. Economic Growth Theory

2. Rational Expectations, Stock Prices, Consumption, and
Investment Money, Finance and Long-run growth
3. International development and globalization
4. Output and Inflation With Sticky Prices Poverty
5. Asset pricing
6. Contemporary issues in income and firm distribution
1. Economic Growth Theory
What factors determine GDP in the long run? What explains patterns of
economic growth across countries? What can policy-makers do to
influence the rate of growth in the medium and long-run?
• Neoclassical Growth Theory
• Elementary Endogenous Growth Theory:
(i)Technology and Economic Growth
(ii)Human capital and Economic Growth

2. Rational Expectations, Stock Prices, Consumption, and

Investment
• Most of the important variables in macroeconomics—stock prices,
household spending, business investment—depend on expectations of
future events. How can we formulate models that describe this
rigorously? How can we test such models? And how well do they do in
describing the data?
3. Money, Finance and Long-run growth
•Basic ”Lucas” asset pricing model
•OLG model with Money
•Financial intermediation and endogenous growth

4. Output and Inflation With Sticky Prices

For monetary policy to affect output, some type of price rigidity must
exist. How can we rigorously formulate models that allow for this price
stickiness? How does monetary policy work in such models? And how
well do these models fit the data?
5. Asset pricing
• Equilibrium asset pricing, the term structure of interest rates, state
contingent prices, the Modigliani‐Miller theorem, the equity premium
puzzle

6. Contemporary issues in income and firm distribution

•Income distribution
•Growth, cycles and firm distribution
•Political institutions and distributive policies
 Suggested Reading:

A. Macroeconomic history
1. Acemoglu, D., Simon Johnson, and James Robinson. 2005. “The Rise of Europe: Atlantic
Trade, Institutional Change, and Economic Growth,” American Economic Review, 95:547–
579
2. Atkinson, Anthony, Thomas Piketty and Emmanuel Saez. 2011. “Top Incomes in the
a. Long Run of History,” Journal of Economic Literature, 3-71.
b. Approach,” Journal of Money, Credit and Banking, 1–28
3. John B. Taylor and Harald Uhlig, Handbook of Macroeconomics, 923-1012
c. Tabellini, Guido. 2010. “Culture and Institutions: Economic Development in the Regions
of Europe,” Journal of the European Economic Association, 677–716

B. The effects of macroeconomic policies

1. Jiménez, Gabriel, Steven Ongena, José-Luis Peydró and Jesús Saurina. 2012. “Credit Supply
and Monetary Policy: Identifying the Bank Balance-Sheet Channel with Loan Applications,”
American Economic Review, 2301-26.
·a. Dependent Effects of Quasi-Random Monetary Experiments,” NBER Working Paper No.
23074
b. Policy, Leverage Cycles, and Financial Crises,” American Economic Review, 1029-61.
 Suggested Reading:

C. Financial frictions
1. Baron, Matthew and Wei Xiong. 2016. “Credit Expansion and Neglected Crash
Risk,” Quarterly Journal of Economics, forthcoming.\
2. Favara, Giovanni and Jean Imbs. 2015. “Credit Supply and the Price of Housing,”
American Economic Review, 958-92.
3. Jordà, Òscar and Moritz Schularick and Alan Taylor. 2016. “Leveraged Bubbles,”
Journal of Monetary Economics, 1-20.
4. Mian, Atif, Amir Sufi and Emil Verner. 2016. “Household Debt and Business Cycles
Worldwide,” Quarterly Journal of Economics, forthcoming.
5. Mian, Atif Kamalesh Rao, Amir Sufi. 2013. “Household Balance Sheets,
Consumption, and the Economic Slump,” Quarterly Journal of Economics 128:
1687-1726
6. Mian, Atif and Amir Sufi. 2014. “What explains the 2007-2009 drop in
employment?” Econometrica, 2197-2223.
7. Reinhart, Carmen and Kenneth Rogoff. 2011. “From Financial Crash to Debt
Crisis,” American Economic Review, 1676-1706.
8. Schularick, Moritz, and Alan M. Taylor, 2012. “Credit Booms Gone Bust:
Monetary
9. Policy, Leverage Cycles, and Financial Crises,” American Economic Review, 1029-
61.