Macrodynamics II: Neokeynesian Models

img del curso

In this course we study the foundations of the New Keynesian Economy (NEK) models. In particular, I review the role of monetary policy, price rigidity and optimal monetary policy in a closed and open economy. I use Dynare in order to simulate the behavior of macroeconomic variables in the face of various shocks or disturbances (productivity, money, among others).

Class Notes Link / Download
Class 1: Overview of Neokeynesian Models

In this class note I describe the main theorical factors of NEK. Furthermore, I review its main characteristics. 

descarga
Class 2: Calvo Model (1983)

In this class note I describe the fixed price model of Calvo (1983). The file will be available soon.

descarga
Class 3: Dixit-Stiglitz Model (1977)

In this class note I describe the monopolistic competition model of Dixit-Stiglitz. This model is the most used in macroeconomics. This note is based on paper of Dixit-Stiglitz (1977).

descarga
Class 4: AS-AD approach of NEK model

In this class note I develop a simple NEK model. The advantage of this is that we can use graphics tools of Agregate Supply (AS) and Agregate Demand (AD) to analyse the effects of monetary policy. This note is based on Beningo (2009).

descarga
Class 5: Monetary policy in classic model

This class note will be available soon.

descarga
Clase 6: Modelo NEK estándar

In this class note I develop the basic NEK model (step by step). This model has three components: Phillips curve, IS dynamic and rule of monetary policy

descarga