Macroeconomic Analysis II

This course follows up on Macroeconomics I (EC2102). We review consumption and investment theories, and study the determinants of money demand and supply. Aggregate Supply functions under differing assumptions regarding labour-market clearing and price expectations (rational or adaptive) are derived next, and combined with the Aggregate Demand function to study policy and other effects. We next examine the expectations-augmented Phillips Curve, and simple inflation-unemployment dynamics. We also study further policy issues (time inconsistency, Ricardian Equivalence, profit-sharing), open-economy macroeconomics (the Mundell-Fleming model), and simple growth theory (the Solow model and the AK endogenous growth model).

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