ECON204 MACROECONOMIC THEORY II
| Course Code: | 3110204 |
| METU Credit (Theoretical-Laboratory hours/week): | 4 (3.00 - 2.00) |
| ECTS Credit: | 7.0 |
| Department: | Economics |
| Language of Instruction: | English |
| Level of Study: | Undergraduate |
| Course Coordinator: | Prof.Dr. DÜRDANE ŞİRİN SARAÇOĞLU |
| Offered Semester: | Fall and Spring Semesters. |
Course Objectives
Course Content
Intertemporal consumption-saving decisions; Ricardian equivalence theorem; credit market imperfections; intertemporal investment decision of the firm; optimal investment rule; cash-in-advance model; Fisher relation; Liquidity trap; menetary policy rules; neutrality of money; New Keynesian Economics; Keynesian transmission mechanism for monetary policy; menu cost models; Freidman rule; Financial intermediation and Banking; The Diamond-Dybvig Banking model; The Phillips curve; Rational expectations hypothesis; Time consistency problem; Beginning of Modern Macroeconomics; The Neoclassical Synthesis; The Rational Expectations Critique.