Week 5-6: Policy Actions: Active or Passive, Ignorance, Lucas Critique. Rule vs. Discretion, Seignorage and Inflation. Policy:Monetarists vs. Activists.
Course Material
- Week 1-2: Exchange Rates. Mundell-Fleming Model.Small open Economy with perfect K Mobility. Goods and Money Market. Floating Exchange Rate
- Week 3-4: Depreciation. Income Absorption and exchange Adjustment and Balance of Payments. Equilibrium. in the Labour Market. The Sticky Wages
- Week 5-6: Policy Actions: Active or Passive, Ignorance, Lucas Critique. Rule vs. Discretion, Seignorage and Inflation. Policy:Monetarists vs. Activists.
- Week 7-8: The expectation augmented Phillips Curve. The size of Government Debt, Measurement Problem: Inflation, Business Cycle
- Week 9: Mid Term Exam
- Week 10-11: Ricardian Equivalence,Tax shooting, Delayed Stabilization, Theory of Real Business Cycles.Technology Shocks.
- Week 12-13: Inflation and Unemployment Rates,Output Growth.Basic Neo-Classical Growth Model and Equilibrium Capital / Output Ratio,
- Week 14-15: Neo-Classical Model with Technical Progress: Labor, Capital Neutral Embodied Technical Progress.
- Week 16-17: Kaldor Saving and Neoclassical Production Function. Golden Rule and Optimal Growth Models. New Growth and Endogenous Growth.
- Week 18: Final Term Exam
- Chapters 10
- Department Economics
- Teacher
Mr. Falak Sher
