TrainingsMasterEconomicsCoursesMacroeconomics IV

Master EconomicsUE Macroeconomics IV


This course follows Macroeconomics II and it goes deeper in the description of micro-founded models by introducing market frictions into the RBC model. The DSGE-New Keynesian model which includes nominal rigidity is a natural extension of the RBC model to analyse monetary policy / fiscal policy. Although this course is mainly theoretical, lectures will be motivated by stylized facts and the empirical performance of business cycle models will be discussed.

Course outline :

Chapter 1 : Nominal rigidities (1) Introducing money in RBC model (2) Monopolistic competition (3) Price rigidity (4) Exercises

Chapter 2 : Monetary and Fiscal policy (1) Monetary policy analysis (2) Fiscal policy analysis (3) New topics in macroeconomics (ZLB, forward guidance…)

(4) Exercises

Professional skills

  • Good knowledge of business cycle models
  • Provide mathematical tools used to solve macroeconomic models.

Languages used

Main languages used by this course:

  • Français
  • Anglais


  • Advanced Macroeconomics, by David Romer, 4thed.
  • Macroeconomic Theory, by Michael Wickens
  • Monetary Theory and Policy, by Carl Walsh
  • Monetary Policy, Inflation, and the BusinessCycle, by Jordi Galí

Structure and organisation

Lectures’ notes will be posted on the course webpage.

Some readings, practice problem sets and past exams will be posted at the same webpage.

Volume of teachings

  • Lectures: 24 hours