Learning outcomes

Intermediate to advanced, research oriented course, focusing on current theoretical and empirical issues relating to money and monetary policy. The course is intended for those students who want to develop a greater understanding of monetary theory and monetary policy using macroeconomic models that contain the most recent developments in the field.

Goals

The goal of this course is to provide students with an overview of modern monetary theory with a focus on applications

Content

Monetary theory and aplications

Table of contents

Part 1:

  1. Welfare Cost of Business Cycles;
  2. Monetary Policy Analysis with Dynamic Structural Statistical Models; 
  3. An Empirical New Keynesian Model for Monetary Policy Analysis.

Part 2: 

  1.  Optimal Monetary Policy in the basic New Keynesian model.
  2. Rules, Commitment and Discretion in monetary strategies
  3. Extension of the basic NK model: financial frictions
  4. Other topics TBA (time permitting)

 

Exercices

Lab session of about 15 hours are organized where students will use the software matlab to implement empirical analysis.

 

Teaching methods

We use lectures and cooperative learning

Assessment method

Students will be evaluated on projects. The projects are developed within groups. Each group presents the report on the projects in class. Each professor part counts for 50% of the total grade.

Sources, references and any support material

  1. Galí, J. (2015) Monetary Policy, Inflation and the Business Cycle : an introduction to the New Keynesian Framework,
  2. Walsh, C. (2010) Monetary Theory and Policy, 3d edition, MIT Press.
  3. Journal articles will also be indicated as useful references in due time.

 

 

Language of instruction

English