Macrofinance: Asset Pricing and Macroeconomic Interdependence

This lecture introduces Macrofinance, a field combining macroeconomics and financial economics. It covers asset pricing in a general equilibrium framework, the relationship between asset prices and macroeconomic conditions, and the interdependence between the financial system and the real economy. The course includes problem sets, a group project, and a final exam. Students will explore topics such as consumption and savings decisions, asset pricing puzzles, monetary and fiscal policy effects, models with financial intermediaries, and the macroeconomic impact of COVID-19.