14.462 Advanced Macroeconomics II

Spring 2007

Graph of a persistent shock. At long times, financial frictions approaches frictionless.

Graph of a persistent shock with ρ = 0.5. Learn more in Countercyclical Liquidity Premia in lecture notes. (Figure courtesy of Prof. Lorenzoni.)

Course Description

Professor Blanchard will discuss shocks, labor markets and unemployment, and dynamic stochastic general equilibrium models (DSGE models). Professor Lorenzoni will cover demand shocks, macroeconomic effects of news (with or without nominal rigidities), investment with credit constraints, and liquidity with its aggregate effects.

Recommended Citation

For any use or distribution of these materials, please cite as follows:

Olivier Blanchard and Guido Lorenzoni, course materials for 14.462 Advanced Macroeconomics II, Spring 2007. MIT OpenCourseWare (http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].

Technical Requirements

Special software is required to use some of the files in this course: .xls.

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Staff

Instructors:
Prof. Olivier Blanchard
Prof. Guido Lorenzoni

Course Meeting Times

Lectures:
Two session / week
1.5 hours / session

Recitations:
One session / week
1.5 hours / session

Level

Graduate