Macroeconomic Models with Financial Frictions (INS-CRS)

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Deadline for the application has passed.
Course No.: IT 18.09
Location: Washington, D.C., United States
Date: September 5, 2018-September 7, 2018 (3 Days)
Language: English

Target Audience:

Officials, primarily in ministries of finance, economy, and planning, or in central banks.


It is required that candidates have an advanced degree in economics, strong analytical skills, and a very good knowledge of English. Courses will be conducted in English with no interpretation.

Course Description:

This course will consider alternative frameworks to study financial frictions and aggregate economic activity in order to understand financial crisis, business cycles, and public policy. The course will begin with a historical overview of financial crises and a basic financial accelerator model which emphasizes the interaction between borrowing constraints, asset prices, and aggregate production. Professor Kiyotaki will then introduce liquidity constraints in addition to borrowing constraints in order to examine business cycles and public policy. Finally, he will introduce financial intermediaries and government to study financial crises, monetary and macroprudential policy. By developing these frameworks, the course aims to understand the recent financial crisis and the roles of public policies.

Target Audience: This is an intermediate course in macroeconomics aimed at staff who wish to deepen their understanding of modern, macroeconomic models that allow for financial frictions. The recommended prerequisite is an introductory, one-year graduate sequence in macroeconomics.

Important Note for Online Courses:

For Online Learning (OL) courses, which are delivered through the edX platform, you will need an additional piece of information to register: you will be prompted for your edX.org username. If you do not already have a username, please go to https://courses.edx.org/register and sign up for a free account. Once you have created an account, you may complete the IMF Institute application. If you already have an edX account, your username can be found on the top right of the screen after logging in.

Important Note for Internal Economics Training Courses:

Internal Economics Training (IT) courses are self-financed. The IMF will not charge officials for attending courses. However, all travel, insurance, hotel, and living costs will need to be covered by the agency sponsoring the participants.