Advanced Macroeconomics II

Graph of a persistent shock. At long times, financial frictions approaches frictionless.

Graph of a persistent shock with ρ = 0.5. Learn more in Countercyclical Liquidity Premia in lecture notes. (Figure courtesy of Prof. Lorenzoni.)


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As Taught In

Spring 2007



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Course Description

Course Features

Course Description

Professor Blanchard will discuss shocks, labor markets and unemployment, and dynamic stochastic general equilibrium models (DSGE models). Professor Lorenzoni will cover demand shocks, macroeconomic effects of news (with or without nominal rigidities), investment with credit constraints, and liquidity with its aggregate effects.

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Related Content

Guido Lorenzoni, and Olivier Blanchard. 14.462 Advanced Macroeconomics II. Spring 2007. Massachusetts Institute of Technology: MIT OpenCourseWare, License: Creative Commons BY-NC-SA.

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