Advanced Macroeconomics part 1 2400-ZM1MAZ1

Topic 1. Solow model with human capital and simple endogenous growth models. The seminar is designed to formally record and solve the neoclassical model of Solow's growth and to compare it with the AK model and models of technological progress.
Topic 2. Public debt. The seminar is designed to analyse the dynamics of public debt and the long-term consequences of its growth, including the so-called fiscal dominance.
Topic 3. Objectives and rules of monetary policy. The aim of the seminar is to discuss the importance of the central bank's main objectives, i.e. price and income stability and financial stability. Moreover, based on the central bank target function and the simple equations of the supply and demand curves, the optimal monetary policy rule is derived.
Topic 4. Monetary policy transmission mechanisms I: interest rate channel. The aim of the course is to discuss the impact of the cost of borrowing on consumption and investment.
Topic 5. Monetary policy transmission mechanisms II: asset price and exchange rate channel. The aim of the course is to discuss the impact of the interest rate on the prices of financial assets and the value of the currency. Then, the mechanisms by which asset prices affect aggregate expenditures are presented.
Topic 6. Imperfection of the credit market. The aim of the course is to discuss the impact of incomplete information on the functioning of the credit market and credit rationing.

Class notes.
Bodea, C. and Higashijima, M. (2017), “Central bank independence and fiscal policy: Can the central bank restrain deficit spending?”, British Journal of Political Science 47(1), 47-70. De Haan, J., Bodea, C., Hicks, R., and Eijffinger, S.C.W. (2018) “Central bank independence before and after the crisis”, Comparative Economic Studies 60(2), 183-202. Elwood (2010), Advancing the Credit Channel and Credit Rationing in the Undergraduate Curriculum: A Useful Model, Journal of Economics and Finance Education 9(1) Fratzscher, M., Lo Duca, M., and Straub, R. (2016) “ECB unconventional monetary policy: Market impact and international spillovers”, IMF Economic Review 64(1), 36-74. Friedman, B.M. (2013), The Simple Analytics of Monetary Policy, NBER Working Paper 18960. Jones Ch. „Introduction to Economic Growth” W.W. Norton &Company Jones, Ch. (2005) “Growth and Ideas”, w: Handbook of Economic Growth, Volume 1B. Edited by Philippe Aghion and Steven N.
Durlauf Kose, M., Nagle, P., Ohnsorge, F., Sugawara, N. (2019) “Global Waves of Debt. Causes and Consequences”, World Bank, https://www.worldbank.org/en/research/publication/waves-of-debt.