## Macroeconomics II

This is a mandatory graduate course for all students pursuing a master's degree in economics at the University of Bern.

### Course Description

Location: A-126 UniS

Time: Wednesday 08.15 - 10:00 (Exercises), Wednesday 10.15 - 12.00

This course introduces Master students to modern macroeconomic theory. Building on the analysis of the consumption-savings tradeoff in dynamic economies and on concepts from general equilibrium theory, the course covers workhorse general equilibrium models of modern macroeconomics: the representative agent framework, the overlapping generations model, and the Lucas tree model.
Readings: The course follows the lecturer’s textbook "Macroeconomic Analysis”, MIT Press, 2019.

Suggested textbooks:

D. Niepelt: Macroeconomic Analysis, MIT Press, 2019. (Amazon)

Learning outcome:

- Students understand central determinants of a household's savings decision under certainty and under risk
- Students understand the concept of general equilibrium and how it manifests itself in the equilibrium conditions of a dynamic economy
- Students understand the central workhorse models of dynamic macroeconomic theory and are able to apply them to macroeconomic questions
- Students can use the models to derive implications for aggregate consumption, capital accumulation, asset prices and other macroeconomic variables
- Students are able to manipulate and work with the equation systems that characterise these models

### Exercises

Next exercise session is on **October 7**. We will cover ** Problem Set 2**. Solutions will be provided on the evening before the exercise session.