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Macroeconomics-Module 2

Outline of the Course


This 24-hour course builds on the module taught by prof. Femminis. It focuses on new developments
involving real business cycle theory, monetary and fiscal policy. The course is split into two modules
taught by prof. Di Bartolomeo and by prof. Tirelli.
Prof. Di Bartolomeo
- Empirical evidence about monetary nonneutrality, liquidity effects, price stickiness and the classical
monetary model (Gal Ch 1 and 2)
- The basic New Keynesian model (Gal Ch 3)
- Monetary policy in the New Keynesian framework: REE determinacy and policy tradeoffs (Gal ch 45)
- Wage stickiness: An introduction (Gal ch. 6)
Prof. Tirelli
- Monetary Policy in the Open Economy (Gal ch. 7)
-Merging nominal and real frictions in a medium scale Dynamic Stochastic General Equilibrium
(DSGE) model
-Empirical DSGE models of the Eurozone

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