Lecture Notes in Macroeconomics

Chapter drafts, under running updating.

Christian Groth, Department of Economics, University of Copenhagen.

Watch for typos and many other early-draft problems!

I very much welcome comments and suggestions of any kind relating to these chapter drafts. Please, let me know of errors, confusions, and limitations in the material.

List of contents   Version 1/10-2017

I. The field and basic categories

Chapter 1     Introduction   

Chapter 2     Review of technology and firms    Chapters 1-2    Version 1/10-17   

 II. Looking at the long run

Chapter 3     The basic OLG model: Diamond   

Chapter 4     A growing economy    Chapters 3-4    Version 1/10-17
Chapter 5     Applying and extending the Diamond model    Version 1/10-17

Chapter 6     Long-run aspects of fiscal policy and public debt   Version 6/9-2016

Chapter 7     Bequests and the modified golden rule    Version 13/9-16

Chapter 8     Optimal capital accumulation    Version 15/11-2017

Chapter 9     The intertemporal consumption-saving problem in discrete and continuous time     Version 14/9-2016

Chapter 10   The basic representative agent model: Ramsey  Version 29/9-2016

Chapter 11    The Ramsey model in use    Version 2/10-2016

Chapter 12    OLG models in continuous time    Version 22/9-2016

Chapter 13    General equilibrium analysis of public and foreign debt  Version 4/10-2016

III. Modeling fixed capital investment

Chapter 14    Fixed capital investment and Tobin's q   Version 20/11-2017

Chapter 15    Further applications of adjustment cost theory    Version 16/11-2017

IV. Modeling money

Chapter 16    Money in macroeconomics   Version  7/11-2016

Chapter 17    Inflation and capital accumulation: The Sidrauski model    Version 28/7-2016

Chapter 18    Wider perspectives on monetary economies    Version 26/11-09, partly updated 2/10-2014 

V. Looking at the short run

Chapter 19    The theory of effective demand    Version 9/11-2016

Chapter 20    General equilibrium under monopolistic competition    Version 30/6-2015

Chapter 21    The IS-LM model    Version    14/11-2016

Chapter 22    IS-LM dynamics with forward-looking expectations    Version 14/11-2016

Chapter 23    The open economy and alternative exchange rate regimes   Version 17/11-2016    

Chapter 24    A closer look at the labor market   

 VI. Uncertainty and expectations                

Chapter 25    Uncertainty, rational expectations, and staggered wage setting    Version 18/12 2017

Chapter 26    Forward-looking expectations and asset price bubbles    Version 18/12 2017

Chapter 27    Applications to New Classical and Keynesian models 

Chapter 28    On asset price bubbles in general equilibrium 

VII. Fitting the parts together: The medium run

Chapter 29    Business cycle fluctuations    Version 30/11 2016

Chapter 30    The real business cycle theory    Version 30/11 2016   

Chapter 31    Keynesian perspectives on business cycles    Version 9/2 2017

Chapter 32    A new-Keynesian workhorse model

Chapter 33    Credit and business cycles

Chapter 34    Issues in monetary and fiscal policy

Chapter 35    Outlook/New developments

VIII. Supplements

Chapter 36    Hints and solutions for selected exercise problems

Chapter 37    Math tools