This is the second course of the macroeconomics sequence. We continue to analyze the development of macroeconomic analysis in the 20th century. The aim of the course is to allow the students taking the course complete their understanding of the 20th century macroeconomic developments.
The course begins with a review of the Grand Neoclassical Synthesis of interpretation of Keynes seen in the previous semester. We then turn to the Monetarist critique of the Keynesian analysis and to a critique of Monetarism in turn. Rational expectations and the real business cycles theories are analyzed and the neo-Keynesian rebuttal is examined. In the second half of the course, we turn to a discussion of open economy macroeconomics, monetary and fiscal policies and an analysis of growth theories.