ADVANCED MACROECONOMICS
Fall 2014
Errata to lecture notes
(continually updated)
10/9-2014
Ch.
6, p. 214, line 7 from below: "in Section 6.3.1"
should read "in Section.4.1".
11/9: some of yesterday's corrections to Section 6.4.1 were
not correct and are withdrawn. As the whole Section 6.4.1 was not well
written, here is a
new version
of Section 6.4.1.
Section 6.4.2-6.7, old version:
p. 220, middle of the page: "is in fact what saw"
should read "is in fact what we saw".
p. 222, line 14 from below: delete "together with (6.3) with
DeltaM_t+1 = 0".
p. 232, line 15 from below: "More
precisely, hug the logic" should read "More
precisely, the logic".
18/9
Ch. 6, p. 212, in the middle: Delete "The answer is not
obvious if by the 'interest rate' is meant the risk-free interest rate."
p. 212, line 11 from below: "in the
case r > g_Y" should read "in the certainty
case r > g_Y".
p. 216, line 8: "the net asset
position and fiscal stance" should read "the
net asset position".
p. 228, in the middle: "the fiscal
stance" should read "the fiscal situation".
p. 231, line 7: "current spending by taxes"
should read "current spending by (lump-sum) taxes".
p. 231, in the
middle: "where r > g_Y and" should read
"where r > g_Y, credit markets are perfect, and".
- , line 6
from below: "of G_t" should read
"of G_t and X_t".
p. 237, line 13:
"C_t = c_1*L_1 + ..." should read "C_t =
c_1*L_t + ... ".
- , footnote
18: Delete "and the constant interest rate".
p. 238, line 7,
from below: "Indeed, the national capital stock"
should read "Indeed, the national wealth".
23/9
Ch. 6, p. 219 was (still) not well-written.
This
version should be clearer.
6/10
Ch. 7, p. 269, line 3-6: The point in this section is
wrong. It is overlooked that a rise in g also has an indirect effect,
namely through a rise in r_D in (7.38). The sign of the net effect on the
RHS of (7.38) of a rise in g can not be established unless the production
function and the parameter values are specified.
24/9
Ch. 12, p. 463, eq. (12.8): The identity sign should be an
equality sign.
p. 463,
line 16: The equality sign should be an identity sign.
p. 464, line 10: "c(0,v)"
should read "c(0,v) = ".
p. 464,
first line after (12.11): "h(t)"
should read "h(t,v)".
p. 465,
eq. (12.15): "h(t)" should read
"h_bar(t)".
19/10
Ch. 6, p. 233, eq. (6.22): "= Y_t - "
should read "= Y_t - r*NFD_t - "
twice!
9/11
LN on Uncertainty, expectations, and speculative bubbles, p. 3, line 6 from
below: Delete "absolute value of beta_1 < 1".
15/11
Ch. 16, p. 652, line 9: "on alternative asset,"
should read "on alternative assets,".
Ch. 19, p. 726, line 13 from below: "is P. the wage
rate" should read "is P. And the wage
rate".
-
- , line 3 from below: "We assume that the
only" should read "We assume that the output
good is perishable and can therefore not be stored. The only".
18/11 and 4/12
Ch. 19, p. 735, line 1 from below:
Delete "at the going price".
- p. 752-53: Three places there is a reference to
(30.1). This should be (19.31).
- p. 769, line 7 from below:
"the determinant, .," should "the
determinant, Δ,".
- p. 777, line 3 from below:
"the budget deficit" should read "the
primary budget deficit".
- p. 779, at the middle:
"in view of (??)" should read "as given in
(19.66)".
- p. 782, at the middle:
"So ()" should read "So (19.73)".
3/12
Ch. 20, p. 810, n. 11, line 1: "Federal Funds Rate Target"
should read "Federal Funds Rate".
12/12
Short Note 4, p. 2, line 6 from below: "IC-BL model"
should read "IS-BL" model.
- - - , p. 2,
line 6 from below: "is given by" should read
"is endogenous and equals".
- - - , p. 7,
figure 2: "Pi < 0" and "Pi > 0" should read
"Pi_dot < 0" and "Pi_dot > 0", respectively.
- - - , p.
11, figure 3: "Pi < 0" and "Pi > 0" should
read "Pi_dot < 0" and "Pi_dot > 0", respectively.
- - - , p.
17-18, figure 6, 7, and 8: On top of the vertical axis "Pi"
should be replaced by "Pi-dot".
17/12
Ch. 30, p. 1085 (similar problem in Ch. 29, p. 1053): The
introduction of U_tilde is
a detour. A better way to proceed
is described
here.