II Term January - March

  • Macroeconomics II (Prof. Saverio Simonelli)

The course covers the basic real business cycle model and then moves to New-Keynesian models. It discusses the microeconomic foundations of nominal rigidities, analysing models of imperfect information and models of imperfect competition with menu costs and real rigidities. Finally, we discuss unemployment fluctuations and cycles driven by self-fulfilling expectations in non-walrasian models with coordiantion failures and multiple equilibria.

The course is composed of four parts:

- Part 1 covers the stylized of the business cycle

- Part 2 is devoted to real business cycle models.

- Part 3 covers the microfoundations of nominal rigidities, namely (i) imperfect information, (ii) imperfct competition and flexible prices, including the role of menu costs, (iii) imperfect competition and predetermined prices, (iv) imperfect competition and state-dependant pricing.

- Part 4 of the courseanalyses non Walrasian models that generate (i) strategic complementarities and multiple equilibria; (ii) unemployment fluctuations and labour market dynamics.


  • David Romer, "Advanced Macroeconomics", McGraw Hill 2006
  • Fabio-Cesare Bagliano and Giuseppe Bertola, "Models for Dynamic Macroeconomics", Oxford University Press, 2004