Browse Hierarchy ECN229: Macroeconomics III

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This module introduces the permanent-income theory of consumption and precautionary savings, and studies the role of price rigidities and uncertainty in determining macroeconomic outcomes. Further topics to be covered include: the Q-theory of firm investment in a dynamic setting, unemployment and turnover in frictional labour markets, and elements of fiscal and monetary policy together with their implications for government debt and inflation. Within each set of topics, students will become familiar with the essential theoretical concepts and tools, and will critically assesses their strengths and limitations in the light of empirical evidence.

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