Macroeconomics III

Code	13952
Year	3
Semester	S2
ECTS Credits	6
Workload	TP(60H)
Scientific area	Economics
Entry requirements	NA
Learning outcomes	Understand the short-run supply curve. Derive the short-run supply curve under imperfect information and contracts. Identify the macroeconomic equilibrium in the short-run. Distinguish it from the long-run equilibria. Distinguish the different expectations and identify their role in the macroeconomic adjustment. Identify business cycles, calculate the cyclical output and its moments. Solve a model of real business cycles. Formalize and solve the central bank problem explain its behaviour and its consequences to the macroeconomic stability, namely dynamic inconsistency. Identify the main growth facts. Implement growth accounting techniques. Explain growth through the Solow model.
Syllabus	1. Labor Market and short-run Supply curve 1.1. competitive labour market 1.2. contrats and imperfect information 1.3. short-run supply curve 1.4. Expectations and adjustment 1.5. Phillips curve 2. Real Business cycles 2.1. Data and stylized facts 2.2. A model of real business cycles 3. Monetary Policy 3.1. Inflation costs 3.2. The central bank and dynamic inconsistency 3.3. Delegation 4. Economic Growth 4.1. Data and stylized facts 4.2. Growth accounting 4.3. Solow model without technological progress 4.4. Solow model with technological progress 4.5. AK model 4.6. Solow model with human capital 4.7. The economics of ideas.
Main Bibliography	[1] Larrain, Felipe and Sachs, Jeffrey (1993), Macroeconomics in the global economy, Prentice- Hall, New Jersey, USA http://www.amazon.com/Macroeconomics-Global-Economy-Jeffrey-Sachs/dp/0131022520 [2] Abel, Andrew and Bernanke, Ben (2001), Macroeconomics, 4th Edition, Addison Wesley Longman, USA http://wps.aw.com/wps/media/access/Pearson_Default/1112/1139349/login.html [3] Jones, C. I. (2001), Introduction to Economic Growth, 2nd Edition, WW Norton http://www.wwnorton.com/college/titles/econ/growth2/ [4] Doepke, Lehnert, Sellgren (2005), Macroeconomics, University of Chicago, USA http://econweb.sscnet.ucla.edu/doepke/teaching/textbook/index.html [5] Williamson, Stephen (2008), Macroeconomics, 3rd Edition, Pearson International Edition, Pearson Addison Wesley, USA http://www.mypearsonstore.com/bookstore/product.asp?isbn=0321416589
Language	Portuguese. Tutorial support is available in English.