This course will cover selected advanced topics in macroeconomics. The course consists of three broad themes: Monetary Policy, Macro-Finance, and Heterogeneous Agents. The Monetary Policy theme will discuss various topics related to monetary policy including non-neutrality of prices, discretionary policy and issues of time inconsistency, and the design of optimal monetary policy. The Macro-Finance theme will discuss macroeconomic asset pricing and the role of financial frictions in modern macroeconomic models with topics in the Lucas model, macroeconomic asset pricing puzzles and responses of the literature, and macroeconomic models of banks. The Heterogeneous Agents theme will break the assumption of a representative agent and study macroeconomic models with heterogeneous agents in a New Keynesian setting and their insights for macroeconomic inequality. By the end of this course students will have the tools to engage with literature at the frontier of modern macroeconomics.
