Master of Science in Finance



Master of Science in Finance

Faculty of Commerce and Accountancy

Chulalongkorn University

Macroeconomics (2008)

Instructor: Kornkarun Kungpanidchakul, Ph.D.

Office: ECON 215/1

Email: runechan@

Office Hour: by appointment

Course Description:

The course is designed in the way that you will obtain all traditional theory in Macroeconomics. The emphasis of this course is to develop the dynamic microeconomics foundation model in macroeconomics and apply the results to answer traditional macroeconomic questions. The objective of the course is to provide you the necessary tools you need to apply theories in macroeconomics to assess financial decisions and how you may use it to address important policy questions.

Grade:

- Final examination 80%

- Assignments 20%

Recommended Textbooks :

The following textbooks are recommended but not required.

- Ljungqvist and Sargent (2004), Recursive Macroeconomic Theory

- Sargent (1987), Dynamic Macroeconomic Theory

- Romer (2001), Advanced Macroeconomics

- Matthias Doepke, Andreas Lehnert, and Andrew Sellgren (1999), Macroeconomics.

(Downloadable from )

- Rody Manuelli (2007), Notes on Discrete Time Dynamic Models

(Downloadable from )

Tentative Outline and Reading Lists:

1. Simple Frameworks of Macroeconomics (lecture 1)

- National income account

- Static closed economy AD-AS model

- The IS-LM model

- Overview of schools in Macroeconomics

Reading list: Any textbook in intermediate macroeconomics

2. Microeconomic Foundations of Macroeconomics (lecture 2-3)

- Review of Dynamic optimization

- General equilibrium model in Macroeconomics : Static

- General equilibrium model in Macroeconomics : Dynamic

Reading list : - Rody Manuelli chapter 1-3

- DLS chapter 2,3,5

3. Government Sector (lecture 4)

- Government Revenues and expenditures

- Government budget

- Ricardian Equivalent

Reading list: - DLS chapter 12-14

- Rody Manuelli chapter 4

4. Consumption, saving, investment and asset pricing (lecture 5-6)

- Consumption under certainty: Permanent income hypothesis

- Consumption under uncertainty

- Price of state contingent commodities

- Investment and the cost of capital

- Investment with adjustment cost

- Tobin’s q

- Stocks, bonds and derivatives

- Modigliani-Miller theorem

- Bank issues: Bank runs, deposit insurance and moral hazard

Reading list: - Romer chapter 7-8

- Sargent, Dynamic macroeconomic theory chapter 3

- Ljungqvist and Sargent chapter 7,10

5. Monetary Economics (lecture 7)

- Money demand and supply

- The quantity theory of money

- The overlapping generation model

- The cash-in advance model

- Monetary and Fiscal policy

Reading list : - Romer chapter 9

- DLS chapter 8,19

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download