University of California, Berkeley
Fall Semester 2007
Department of Economics
Professor George A. Akerlof
Professor Maurice Obstfeld
A. Introduction/Overview of Course
*George Akerlof, "The Missing Motivation in Macroeconomics,"
, March 2007, pp. 5-36.
B. Introduction/Mathematical Review
*Andrew C. Harvey,
Time Series Models
, Chapter 1, pp. 1-9; Ch. 2, pp. 21-53.
David Romer, Third Edition, Chapter 5, "Traditional Keynesian Theories of
Fluctuations," Sections 5.1 and 5.3-5.6, pp. 222-231, and 242-270.
Maurice Obstfeld, &Dynamic Optimization in Continuous-Time Models (A Guide for the
Perplexed),± manuscript, UC Berkeley, April 1992. Available at:
Third Edition, Chapter 6, "Microeconomic Foundations of Incomplete
Nominal Adjustment," Sections 6.1-6.3, and 6.9-6.10, pp. 271-285, pp. 316-326.
*Robert Lucas and Thomas Sargent, "After Keynesian Macroeconomics," from Federal
Reserve Bank of Boston,
After the Phillips Curve: Persistence of High Inflation
and High Unemployment
, Conference Series No. 19.
*Thomas Sargent, "Rational Expectations, the Real Rate of Interest, and the Natural Rate
Brookings Papers on Economic Activity
1973:2, pp. 429-472.
*John Taylor, "Staggered Wage Setting in a Macro Model,"
American Economic Review
Papers and Proceedings
, May 1979, pp. 108-113.
Stanley Fischer, "Long-Term Contracts, Rational Expectations and the Optimal Money
Journal of Political Economy
, February 1977, pp. 191-205.
Laurence Ball, "Credible Disinflation with Staggered Price Setting,"
, March, 1994, pp. 282-289.