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Lecture notes for Macroeconomics I, 2004

Lecture notes for Macroeconomics I, 2004 Per KrusellPlease do NOT distribute without permission!Comments and suggestions are 1 IntroductionThese Lecture notes cover a one-semester course. The overriding goal of the course isto begin provide methodological tools for advanced research in Macroeconomics . Theemphasis is on theory, although data guides the theoretical explorations. We build en-tirely on models with microfoundations, , models where behavior isderivedfrom basicassumptions on consumers preferences, production technologies, information, and so is always assumed to be rational: given the restrictions imposed by the primi-tives, all actors in the economic models are assumed to maximize their studies emphasize decisions with a time dimension, such as variousforms of investments.

In other macroeconomic topics, such as monetary economics, labor, flscal policy, and asset pricing, the Solow model is also commonly used. Then, other aspects need to be added to the framework, but Solow’s one-sector approach is still very useful for talking about the macroeconomic …

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