14.462 Advanced Macroeconomics II

As taught in: Spring 2007

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.)




Prof. Guido Lorenzoni

Prof. Olivier Blanchard

Course Features

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 effects.

Technical Requirements

Special software is required to use some of the files in this course: .xls.