2019/20

The course will provide students with a detailed knowledge of the New Keynesian model which provides the foundation for the macroeconomic policy models used in the worlds leading central banks. The course will also equip students with modern econometric techniques with which to investigate macroeconomic data, to assess the adequacy of theoretical models and to pose new questions. The New Keynesian approach will be briefly placed in the wider literature of optimizing rational agent models, with some discussion of the evolution from the Real Business Cycle to models with nominal rigidities. Modern topics are likely to include credit frictions and policy at the zero lower bound. Key skills developed include intertemporal optimisation and Structural VAR analysis.