Finance in Macroeconomics

Author: Shengxing Zhang (

The goal of the course is to study models about the incompleteness of the financial marketor financial system, and then consequences of these incompleteness for the macroeconomy. We will first look at what frictions in the real world financial system may lead to fluctuations of themacroeconomy, then, to study partial equilibrium models of such frictions, after which we will lookat full-fledged dynamic equilibrium models with those frictions.