Economics 714

Macroeconomic Theory II

Spring 2018

Professor:  Noah Williams
Office: 7434 Sewell Social Science, e-mail:

Office hours: 2:30-3:30 Thursday, or by appointment.


Lectures:  Monday and Wednesday from 11:00-12:15, Birge B302

Anson Zhou, email:


Lecture notes and other material:

Lecture 1 : The Lucas asset pricing model
Lecture 2:  Dynamics, completeness, asset pricing
Lecture 3:  Asset pricing and the equity premium puzzle  || Related reading: Cochrane (2016) recent survey of macro finance asset pricing models
Lecture 4:  Equity premium, complete markets
Lecture 5:  Complete and incomplete markets
Lecture 6:  Search equilibrium
Lecture 7:  More on search
Lecture 8:  Fiscal policy in the growth model
Lecture 9:  Optimal fiscal policy
Lecture 10: Optimal taxation with private information (longer overview slides),  Static Mirrlees model (from Bolton and Dewatripont, 2005).
Lecture 11:  Money in a neoclassical framework
Lecture 12:  Search theoretic models of money
Lecture 13:  The New Keynesian model

Problem Sets:

Problem Set 1  Due in class on 2/14  (updated)
Problem Set 2  Due in class on 2/28
Problem Set 3  Due in class on 3/7.


 Midterm (Final for this part) Exam in class on March 12.