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Macroeconomics II


Pica G.

Course director

Mokhtari M.



  • The real business cycle model
  • Microfoundation of nominal rigidities:
    • asymmetric information
    • small menu costs
  • The role of labour and financial markets imperfections on business fluctuations
    • Unemployment fluctuations and labour market dynamics
    • Credit rationing, credit cycles and systemic risk


The objective of the course is to develop the analytical tools to think about short-run macroeconomic policy issues. The course will first discuss intertemporal consumption choices that have a central role in many macro models, highlighting the role of uncertainty and liquidity constraints in shaping the lifetime profile of consumption and savings. It will then discuss the stabilization role of fiscal and monetary policy along the business cycle. The course will cover both the basic real business cycle model and New-Keynesian models of asymmetric information and imperfect competition with small menu costs. The final part of the course will discuss the role of labour and financial market frictions on business fluctuations.

Teaching mode

In presence

Learning methods

The course will discuss both economic theory models and the related empirical evidence in an interconnected way. At the end of the course, students will be able to understand and discuss macroeconomic issues and related policy implications.

Examination information

Written exam