TrainingsMasterEconomicsCoursesMacroeconomic dynamics

Master EconomicsUE Macroeconomic dynamics


The 2008 crisis and its consequences have shown the important role played by the interplay between the financial and real spheres at the macroeconomic level. The aim of this course is to study some of these aspects. We will focus on two issues that have experienced recent empirical and theoretical developments, the relationship between growth, macroeconomic volatility and public debt, and the one between economic activity and speculative bubbles.

Course outline :

1. Public debt, growth and macroeconomic volatility (Alain Venditti)

1.1. Balanced budget, fiscal policy and aggregate fluctuations

1.2. Public debt, inequalities and macroeconomic fluctuations

1.3. Multiple equilibria and collateral constraints in open economy

1.4. Public debt and growth : the short term and long term effects

2. Rational bubbles and macroeconomic activity (Thomas Seegmuller)

2.1. Existence of bubbles, crash and crowding-out effect in a simple overlapping generations model

2.2. Bubbles and infinitely lived agents

2.3. Bubbles enhancing production : heterogeneous investments and liquidity constraints

2.4. The role of public policies

Professional skills

  • dynamic analysis
  • understanding of the mechanisms source of macroeconomic fluctuations
  • relationship between the real and financial spheres of the economy

Language used

Main language used by this course: Anglais.


Partie 1

Abad, N., T. Seegmuller et A. Venditti (2017) : « Non-Separable Preferences do not Rule Out Aggregate Instability under Balanced-Budget Rules : A Note », Macroeconomic Dynamics 21, 259-277.

Cheron, A., K. Nishimura, C. Nourry, T. Seegmuller et A. Venditti (2015) : « Growth and Public Debt : What are the Relevant Tradeoffs ? », AMSE Working Paper.

Futagami, K., T. Iwaisako et R. Ohdoi (2008) : « Debt Policy Rule, Productive Government Spending, and Multiple Growth Paths », Macroeconomic Dynamics 12, 445-462.

Ghilardi, M. et R. Rossi (2014) : « Aggregate Stability and Balanced-Budget Rules », Journal of Money, Credit and Banking 46, 1785-1807.

Giannitsarou, C. (2007) : « Balanced Budget Rules and Aggregate Instability : the Role of Consumption Taxes », The Economic Journal 117, 1423-1435.

Minea, A. et P. Villieu (2013) : « Debt Policy Rule, Productive Government Spending, and Multiple Growth Paths : a Note », Macroeconomic Dynamics 17, 947-954.

Morimoto, K., T. Hori, N. Maebayashi et K. Futagami (2017) : « Debt Policy Rules in an Open Economy », Journal of Public Economic Theory 19, 158-177.

Nishimura, K., C. Nourry, T. Seegmuller et A. Venditti (2015) : « On the (De)stabilizing Effect of Public Debt in a Ramsey Model with Heterogeneous Agents », International Journal of Economic Theory, 11, 7-24.

Nourry, C., T. Seegmuller et A. Venditti (2013) : « Aggregate Instability Under Balanced-Budget Consumption Taxes : a Re-examination », Journal of Economic Theory 148, 1977-2006.

Schmitt-Grohé, S. et M. Uribe (1997) : « Balanced-Budget Rules, Distortionary Taxes, and Aggregate Instability », Journal of Political Economy 105, 976-1000.

Schmitt-Grohé, S. et M. Uribe (2018) : « Multiple Equilibria in Open Economy Models with Collateral Constraints : Overborrowing Revisited », NBER Working Paper No. 22264.

Partie 2

Fahri, E. et J. Tirole (2012) : « Bubbly Liquidity », Review of Economic Studies 79, 678-706.

Kocherlakota, N. (1992) : « Bubbles and Constraints on Debt Accumulation », Journal of Economic Theory 57, 245-256.

Martin, A. et J. Ventura (2012) : « Economic Growth with Bubbles », American Economic Review 102, 3033-58.

Miao, J. (2014) : « Introduction to Economic Theory of Bubbles », Journal of Mathematical Economics 53, 130-136.

Weil, P. (1987), « Confidence and the Real Value of Money in Overlapping Generations Models », Quarterly Journal of Economics 102, 1-22.

Raurich, X. et T. Seegmuller (2015) : ''On the Interplay between Speculative Bubbles and Productive Investment'', AMSE Working Paper 2015-42.

Structure and organisation

Lecture with presentation of research articles.

Appraisal : project and final oral presentation.

Volume of teachings

  • Lectures: 24 hours

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