This course provides an introduction to the approaches and methods
of aggregative economics. The goals are to gain a grasp of some of the main tools of modern macro research, and learn how macro models can be used to study economic problems. There will be homeworks, two
mid-term exams and one final exam. Your grade will be determined by the following policy: the homeworks account for 10%, the mid-term
exams 28% each, and the final exam 34%.

Suggested textbooks:

David Romer, Advanced Macroeconomics, McGraw-Hill, 2006.

Olivier J. Blanchard and Stanley Fischer, Lectures on
Macroeconomics, Cambridge: the MIT press, 1989.

Nancy L. Stokey, Robert E. Lucas and Edward C. Prescott, Recursive
Methods in Economic Dynamics, Harvard University Press, 1989.

Lars Ljungqvist and Thomas J. Sargent, Recursive Macroeconomic
Theory, Cambridge: the MIT press, 2004.

Course Outline:

1. Introduction -- the story of macroeconomics

2. Simple Dynamic Models (Two-Period Models)

Saving and investment Government spending
taxation and debt

3. Growth Models

The Solow growth model
The neoclassical growth model in discrete time (dynamic programming)
Continuous time growth models

4. Search and Matching Models
Unemployment
Money

5. Overlapping Generations Models
Social security, capital
accumulation and dynamic inefficiency

http://homepage.ntu.edu.tw/~yitingli/