Computational Methods in Macroeconomics

This course examines how to construct and estimate dynamic stochastic general equilibrium (DSGE) models for comparative policy analysis, interpretingthe relative importance of key policy variables, as well as exogenous forces as key drivers of economic cycles and growth.The course will start with linear models with forward-looking expectations but will also take up nonlinear methods for understanding the zero-lower bound on interest ratesand external borrowing limits of small economies for understanding economic adjustment in times of crisis.