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Macroeconomics II


Pica G.

Course director


Bachelor Micro and Macro

The objective of the course is to develop the analytical tools to think about short-run macroeconomic policy issues. The course will first introduce the theory of intertemporal consumption choices that has a central role in many macro applications, 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 markets frictions on business fluctuations.

Description / Program

  • 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


Exam Style


Advanced Macroeconomics, David Romer, McGraw Hill 2011.

Models for Dynamic Macroeconomics, Fabio-Cesare Bagliano and Giuseppe Bertola, Oxford University Press, 2004