Econ 546 Growth and Macroeconomics
This course provides a rigorous framework for understanding the aggregate economy in both the short run and the long run. The first part of the course examines the causes and consequences
of economic 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. The second part of the class explores the demand side of the economy, both in a closed economy and in an open economy. The recent economic crises in the U.S. and Europe have spurred renewed interest among economists in understanding the connection between financial frictions, asset prices, labor markets, fiscal policy, and central banking. We will focus on the short- and medium-run responses of firms, households, the government, and the central bank, and test whether our theoretical predictions are consistent with recent empirical evidence.