2174-Macroeconomic Analysis-2425_S1

Investment

Summary

• Investment: The private sector consolidated budget constraint. NPV and wealth. Optimal investment. Savings, investment and the current account. Changes in interest rate (small open economy). Temporary output shocks. Productivity shocks. Tobin’ q. 
• Inter-dependence: Current account adjustment in a large economy. Push and pull factors driving capital flows. Global imbalances.

Class Content

		Topic	Handout exercises
	Video lecture	Lecture 20/9/2023: Intertemporal budget constraints; Optimal investment; Lecture 25/9/2023: Equilibrium in the investment economy; Comparative statics.  Separation;	9.5, 9.6;  9.7, 9.9, 9.10, 9.11; 9.12.

Activities

		Access	Deadline	Other materials
	Quizzes	Quiz 2

Documents

		Access
	Readings	Handout on Two period Investment; PPT here For more,  please see here  (continuous update)