Slides & Notebooks

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1. Welcome to Julia & Pluto


  • Slides: \(~\) Presentation version \(~~\)RevealJS \(~~~,~~~\) Long version \(~\) Html-long \(~~~,~~~\) Long \(~\) Pdf version

  • Julia Notebooks: \(~~~~\) Julia static notebook \(~\) here \(~~,~~~\) active notebook \(~\) here

  • Python Notebooks: \(~~~~\) Python static notebook \(~\) here \(~~,~~~\) active notebook \(~\) here



2. Recap: Basic Statistics & Dynamic Processes


  • Slides: no slides for this entry, only the notebook below

  • Julia Notebooks: \(~~~~\) static notebook \(~\) here \(~~,~~~\) active notebook \(~\) here

  • Python Notebooks: \(~~~~\) static notebook \(~\) here \(~~,~~~\) active notebook \(~\) here

  • The steady-sate: static notebook \(~\) here



3. Business cycles: main problems & facts



For those that want to have a flavor of what macroeconomics is all about, you can read this article by Paul Krugman in the New York Times, February 8, 2023: \(~~\) Revisiting the Summer of Stagflation

In particular, see if you feel more inclined to favor Larry Summers’s dim view on inflation and unemployment (that containing inflation would require five years of 6 percent unemployment) or the more optimistic perspective of Paul Krugman: inflation seems to be rapidly coming down … and unemployment is [surprisingly] coming down as well.

Note. This article is made available here strictly for teaching purposes.



4. The Hodrick-Prescott filter (HP) & Impulse Response Functions (IRFs)




5. Solving Rational Expectations models


In this topic, we cover how economics analyzes the process by which private agents formulate expectations. For Adaptive Expectations, in our classes, we will cover only points {1, 2, 3, 7} on the slides below. For Rational Expectations, we will cover all the points presented in the slides below.



6. The simplest DSGEM & the Blanchard-Kahn method


In classes, we will cover only points {1, 5, 6} of the slides below. Points {2,3,4} are the solution to an exercise, and Appendix A is related to a point (the proof of a particular technique that we will use) that will not be required in the assessment moments.

Students are strongly advised to solve the model presented in point 1 of these slides, using paper & pen. The equations were already covered in the previous topic and this simple exercise is very important to understand the logic behind the solution to DSGEMs. Students can check their solutions by consulting slides (points 2 to 4).



Recap the Solow growth model


The materials covered in the following topic, “7. The Real Business Cycle Model,” are based on the Solow growth model. This model was covered in the first semester’s economic growth course; students are strongly advised to review the slides below and revisit the key aspects of this model. As in topic 7, we will be concerned with business cycles (not growth), the part of the slides that deals with the characterization of the growth rates in the steady-state can be skipped without any major loss of useful information for this course. But only this part should be skipped.

Readings. If you want to get some further information about the Solow growth model, using discrete time, a good bibliographical reference is Daron Acemoglu (2008). Introduction to Modern Economic Growth. Princeton University Press. See Chapter 2: The Solow Growth Model, pages 34-47, to be found here (courtesy of the Princeton University Press): \(~\)here



7. The Real Business Cycle model


We will cover most of the details of the RBC model, but we will exclude the linearization techniques. Students must know the linearized version of the model, but the specific step from the non-linear to the linear version will not be covered in this course (and the slides do not either).

Readings. Do not dive into the references below without reading the slides first, to check what is covered in our program, and how the bibliographical entries should be used. The slides include a section covering the details about the references below.

  • Vivaldo Mendes (2026). The Real Business Cycle Model: An Introduction \(~~\) next week

  • Dirk Krueger (2007). “Quantitative Macroeconomics: An Introduction”, Lecture Notes, University of Pennsylvania \(~~\) here

  • Kurt Mitman (2025). “Chapter 14: Real Business Cycles”, in the online/huge textbook “Macroeconomics”, by Azzimonti, M. et al. (2025) \(~~\) here



8. The New Keynesian model



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