Advanced Macroeconomics 1
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Division: The New School for Social Research
Course Number: GECO 6202
Course Format: Lecture
Location: NYC campus
Permission Required: No
The course aims, above all, to carry on the New School tradition of critical Macroeconomics, most elegantly summarized in Lance Taylor’s Maynard’s Revenge (which will be the core textbook, around which I shall attempt to weave a tale). This is a tradition that pays intellectual homage to the development of macroeconomic theory, from Wicksell and Keynes – in his many ‘incarnations’ – to their modern interpreters (all the way from Lindahl, Myrdal, Hicks and Samuelson to Friedman, Tobin, Clower, Phelps and Lucas). This means, also, a parallel – but critical - focus on the evolving ‘theoretical technologies’ (pace Robert Lucas) of macroeconomics, from Ramsey to the Recursive Macroeconomics of the Newclassicals: i.e., from the calculus of variations (in its classical modes) to the three so-called recursive tools of ‘modern’ macro, Markov Decision Processes, Kalman Filtering and Dynamic Programming. The theory of economic policy, as an intrinsic component of any tradition of macroeconomic theory, will underpin the whole construction and structure of the course (i.e., from the Frisch-Tinbergen target-instrument approach to the policy-nihilism expressed in a reliance on the two fundamental theorems of welfare economics by Lucas and his followers). In addition to the above, some of the ‘contemporary’ pioneering articles that shaped modern macroeconomics, by Hayek, Modigliani, Phillips, Solow, Muth, Malinvaud, Minsky, Kydland, Prescott and Wallace and others, will also be used as the course progresses.