In this course we will study important macroeconomic issues using the overlapping generations framework. We will first learn how the overlapping generations approach works. Then we apply this modeling tool to a number of issues such as the determinants of price level and inflation, monetary stabilization policy, the relationship between monetary and fiscal policy, government deficits, and exchange rate policy. We will also study banking, its regulation, and financial stability. We will also talk about the late-2000s financial crisis and the Great Depression of the 1930s.

The material would be based on the textbook by Champ and Freeman "Modeling Monetary Economies", and would be complemented by articles from J. of Economic Perspectives, J. of Economic Literature, Economist and chapters from books such as "Animal spririts" by Akerlof and Shiller and "Manias, panics, and crashes" by Kindleberger and Aliber.