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Macro-Finance Online Summer School

June 27 to July 12, 2023


This intensive online summer school brings students to the frontier of modern continuous time modeling techniques at the intersection between macroeconomics, monetary economics, and (international) finance. The aim of this course is to develop and teach advanced tools and includes a step-by-step solution procedure that students can apply to a variety of economic problems.

Target Audience:

The course is designed for Ph.D students in economics, finance, and related fields. The course is suitable for first year PhD students.

Participating students must be nominated by their Ph.D. advisor. However, this course is no longer taking nominations.

Lecture Notes:

Read, download, and print.  

Flipped classroom setting:

  • Students watch online lectures at their preferred time.
  • Review sessions are held simultaneously for all participants at 11 a.m. (Eastern Time), 17:00 (European Time).
  • Participating students are expected to solve and submit problem sets. They are also allowed to do it in small groups.


  • Students that perform well on problem sets are eligible to attend the Princeton Initiative 2023 in Princeton from September 8-10.
  • Receive a certificate of participation from Markus[1]

Outline, Timing and Links:

1. Why Continuous Time Modeling

2. Continuous Time Stochastic Optimization (Consumption, Portfolio)

3. A Simple Macro-Finance Model with Heterogeneous Agents

  • 04slides
  • 04video
  • Problem Set on Basak-Cuoco
  • Review Session: Friday June 30, 2023

4. Endogenous Risk Dynamics with Log utility

5. Monetary Models with one Sector

6. Numerical Methods  and Value Function Iteration

Videos by Yuliy Sannikov

Videos by Andrey Alexandrov

[1] This is not an official degree from Princeton University.