top of page

Prayer Group

Public·18 members

Macroeconomic Theory Sargent Pdf 47 [UPDATED]

The tasks of macroeconomics are to interpret observations on economic aggregates in terms of the motivations and constraints of economic agents and to predict the consequences of alternative hypothetical ways of administering government economic policy. General equilibrium models form a convenient context for analyzing such alternative government policies. In the past ten years, the strengths of general equilibrium models and the corresponding deficiencies of Keynesian and monetarist models of the 1960s have induced macroeconomists to begin applying general equilibrium models.

macroeconomic theory sargent pdf 47

This book describes some general equilibrium models that are dynamic, that have been built to help interpret time-series of observations of economic aggregates and to predict the consequences of alternative government interventions. The first part of the book describes dynamic programming, search theory, and real dynamic capital pricing models. Among the applications are stochastic optimal growth models, matching models, arbitrage pricing theories, and theories of interest rates, stock prices, and options. The remaining parts of the book are devoted to issues in monetary theory; currency-in-utility-function models, cash-in-advance models, Townsend turnpike models, and overlapping generations models are all used to study a set of common issues. By putting these models to work on concrete problems in exercises offered throughout the text, Thomas Sargent provides insights into the strengths and weaknesses of these models of money. An appendix on functional analysis shows the unity that underlies the mathematics used in disparate areas of rational expectations economics.

This book on dynamic equilibrium macroeconomics is suitable for graduate-level courses; a companion book, Exercises in Dynamic Macroeconomic Theory, provides answers to the exercises and is also available from Harvard University Press.

1. Can Brenda tell me if I was admitted by mistake?2. Why does David assign more than 168 hours of readings and problem sets per week?3. Where can you purchase alarm clocks without snooze buttons?4. Where can I get a pirated copy of Civilization V?5. Is marijuana legalized in Massachusetts?6. Is it possible to graduate if you only do 50% of the reading assignments?7. What if you do 20%? 10%?8. Do the faculty believe that we understand their lectures?9. When should I start research?What makes a research project successful?10. How should I manage a portfolio of research projects?11. What does the theory of option value say about optimal stopping times for partially finished research projects?

This paper compares different implementations of monetary policy in a new-Keynesian setting. We can show that a shift from Ramsey optimal policy under short-term commitment (based on a negative feedback mechanism) to a Taylor rule (based on a positive feedback mechanism) corresponds to a Hopf bifurcation with opposite policy advice and a change of the dynamic properties. This bifurcation occurs because of the ad hoc assumption that interest rate is a forward-looking variable when policy targets (inflation and output gap) are forward-looking variables in the new-Keynesian theory.


This group is for intercessors. Those with a heart for God a...
Group Page: Groups_SingleGroup
bottom of page