14.462 | Spring 2007 | Graduate

Advanced Macroeconomics II

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 …
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.
Learning Resource Types
Problem Sets
Lecture Notes
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.)