Marcel R. Savioz


Advanced Macroeconomices (University of Lucerne)

Course Aims

This course emphasizes

  • the interactions within economies (general equilibrium approach),
  • the applications of macroeconomic models,
  • and economic policy issues (with a political economy approach).

Required reading

Stephen D. Williamson, Macroeconomics, 4th edition, Addison Wesley.

Optional more advanced readings

Max Gillman, Advanced Modern Macroeconomics: Analysis and Application, Prentice Hall.


Michael Wickens, Macroeconomic Theory, 2nd edition, Princeton University Press.


In May, there will be a two-hour formal examination based on the overall syllabus. The test will be structured in three parts: multiple choice questions, exercises and questions, theme.



A) Basics

Session 1 (February 23th) Introduction and Measurement Issues

  • Introduction, Measurement and Business Cycle Measurement (Williamson Ch. 1-3)


B) One-Period Macroeconomic Models

Session 2 (March 2nd) Static Models of the Macroeconomy I

  • Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization (Williamson Ch. 4.)

Session 3 (March 9th) Static Models of the Macroeconomy II

  • The One-Period Macroeconomic Model with Government (Williamson Ch. 5.)

Session 4 (March 16th) The DMP Model of Search and Unemployment

  • A Diamond-Mortensen-Pissarides Model of Search and Unemployment. (Williamson Ch. 6.)

C) Two-Period Macroeconomic Models

Session 5 (March 23th) Real Intertemporal Model I

  • The Consumption-Savings Decision and Credit Markets (Williamson Ch. 9.)

Session 6 (March 30th) Real Intertemporal Model II

  • Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security (Williamson Ch. 10.)

Session (April 6th) Easter


Session 7 (April 13th) Real Intertemporal Model III

  • A Real Intertemporal Model with Investment (Williamson Ch. 11.)


D) Monetary Two-Period Models

Session 8 (April 20th) Monetary Model

  • Money, Banking, Prices and Monetary Policy (Williamson Ch. 12.)

E) Open-Economy Two-Period Macroeconomic Models

Session 9 (April 27th) International Economics

  • International Trade in Goods and Assets (Williamson Ch. 15.)
  • Money in the Open Economy (Williamson Ch. 16.)

F) Inflation, Deflation, Banking and Central Banking

Session 10 (Mai 4th) Money, Banking and Inflation I

  • Money Inflation, and Banking (Williamson Ch. 17.)

Session 11 (Mai 11th) Money, Banking and Inflation II

  • Inflation, Central Bank Independence, Central Bank Commitment (Williamson Ch. 18.)


Session 12 (Mai 18th)

  • Examination