monetary economics

Learning objectives The main Content objective of the course is to help undergraduate students bridge the gap between the Monetary Policy concepts and models typically seen at the undergraduate level (namely, the IS‑LM Model) and the New Keynesian frameworks used at the graduate level and at Central Banks. Specifically, students become familiar with the key concepts of Money and Inflation Targeting, Time Inconsistency, Credibility and Independence of the Central Bank, Inflation, Quantitative Easing, and Financial Stability. Moreover, students learn how to use and solve the Cash‑in‑Advance Model and a simplified version of the New Keynesian Model. The main Performance goal is for students to be able to read and critically assess research papers. Course content Students are first given a non‑mathematical overview of the main concepts that are relevant to understand how central banks work nowadays: inflation targeting, an interest rate rule, etc. The presentation of these concepts is complemented with a look at the data and real‑life examples of Monetary Policy discussions. Once students are familiar with these new concepts, the course turns into looking at two models: a cash‑in‑advance model and a simplified New‑Keynesian model. 1. An overview of Modern Monetary Policy. 1. What We Know.From 2. Money Targeting to Inflation Targeting. 3. Time Inconsistency, Credibility, and Independence. 4. The Effects of Inflation. 5. Unconventional Monetary Policy. 6. Monetary Policy and Financial Stability. 2. Micro‑funded Monetary Policy. 1. A Cash‑in‑Advance Model. 2. Optimal Policy in a CIA Model: the Friedman rule. 3. A New Keynesian Model. 1. Monopolistic Competition: Sticky Prices. Fact sheet version: 1.0 as of 16/12/2019, valid for Spring Semester 2020 Page 1 / 4 2. The Dixit‑Stiglitz Framework. 3. The Rotemberg Menu Costs. 4. Monetary Policy in the New Keynesian Model.

Comments

Post a Comment

Popular posts from this blog

ft

Image
Fed keeps wiggle room on rates No matter how hard the Federal Reserve has tried to give itself room for manoeuvre on monetary policy, by decision time that flexibility has become more limited. That is the view of central bank-watchers in the weeks since the Fed reduced its benchmark interest rate for only the second time since the financial crisis. It is widely expected to cut again at its October 30 meeting, but US central bank officials have gone to great lengths to brace investors for a pause following that cut — barring a dismal turn in the economic data. Investors have so far accepted this reality, with the odds of another rate reduction in December modest at 30 per cent, according to Fed funds futures contracts compiled by CME Group. But should investors ramp up their expectations for another interest rate cut later this year, the Fed could very well find itself pressured into action once more, or risk sparking a market sell-off. In the days before the Fed’s so-called “black...
Read more
Image
For most of the twentieth century, as David Edgerton shows in his vital and decisive book, “United Kingdom” was a technical term used by statisticians, diplomats and the army, but seldom in a wider context. It was not until the 1960s that historians seeking to foster a progressive national consensus began presenting the “United Kingdom” story in terms of an emancipatory and cohesive welfare state, while underplaying the extent to which it was a bundle of semi-unified nations. Most subjects of Elizabeth II associated the phrase “United Kingdom” with broadcasts of the Eurovision Song Contest: “Royaume-Uni, nul points”. The first three country code top-level domain names allotted in 1985 – .us, .uk and .il – and the spread of email traffic and internet shopping finally brought “uk” into common currency among people living in the British Isles. As to the noun “Britain”, it became the standard usage in politics and historical writing only after 1945. It was – and is – used promiscuously ...
Read more

gillian tett 1

What probability do you give that there might be a new financial crisis? This month, the number crunchers at Oxford Economics, a research group, asked 162 global businesses this question. Their average answer was 20 per cent over the next two years. That is twice as high as the perceived risk of a second global wave of the Covid-19 pandemic and also, sadly, the probability of an early effective vaccine arriving.  These fears already have tangible consequences: they pushed down business sentiment more in this month’s Oxford survey than hard data justified. “Our analysis suggests that financial crisis fears account for much of the gloom,” said Jamie Thompson, the poll’s lead economist. This should concern investors, although not because a financial crisis is likely to explode right now — at least not in the headline-grabbing style of 2008. At least two factors mitigate that risk.  First, the US Federal Reserve and other central banks have made it clear that they will do “whatever it...
Read more