Economics 335/546 will provide you with a rigorous framework for understanding the process of economic growth from a macroeconomic perspective. The main focus of the course is on the factors sustaining long-run growth. The wealth of nations is built over long stretches of time, and what matters over this horizon are the real factors of production, including labor, physical capital, technology, resources, human capital, institutions, and geography. To study these factors, we start from presenting some salient empirical facts about growth and income distribution across countries. Then, to understand these facts, we consider economic theories of physical and human capital accumulation, technical progress, and innovation. We emphasize the role of governments and institutional factors. We also discuss how growth is affected by trade, income inequality and by the availability of natural resources. The second part of the course explores the demand side of the economy and short-run equilibrium phenomena. We consider labor markets (unemployment, wage dynamics, etc.), monetary policy, financial factors, stabilization policy, and financial crises.
[also Econ 546] For IDE students.