- 3 credits
- Prerequisite: None
This course is offered through the Economics Department in the College of Arts and Sciences at Indiana University.
This course is designed to introduce you to modern dynamic macroeconomic analysis. Modern macro can usefully be characterized as "price theory with t's." Because modern macro is grounded in individual optimization and market clearing, at its core it is the application of price theory to intertemporal decision making. The "t's" stand for time subscripts on variables, reflecting the inherently dynamic nature of macroeconomic behavior. One distinction between micro and macro is the latter's emphasis on the use of formal general equilibrium models to interpret observed time series data. As an applied macroeconomist, the step of connecting theory to data is crucial. This course will also explore ways of taking that empirical step.