Monetary Policy
Topic outline
-
Course start date: 1/10/2020
Streming classes: link
Class hours: Monday (16-18) and Thursday (14-16)
Venue: Aula 1B
Exam dates (check also INFOSTUD for possible changes):
- I term: 15/1/2021; 8/2/2021
- II term: 14/6/2021; 7/7/2021
- III term: 13/9/2021
- extra term: 19/4/2022; 4/10/2022
Disclaimer. Web-page materials are not self-contained, do not always constitute original material and do contain some “cut and paste” pieces from various sources that might not always explicitly referring to (although I am trying to cite my sources as much as possible). Therefore, they are not intended to be used outside of the course nor to be distributed. Thank you for signalling me typos or mistakes
-
-
- Walsh, C. E. (2010), "Monetary theory and policy," MIT Press, Cambridge, 3rd ed: Chapter 1.
-
-
- Kiyotaki N. and R. Wright (1993), "A Search-Theoretic Approach to Monetary Economic," American Economic Review, Vol. 83, No. 1, pp. 63-77.
- Gu C., H. Han, and R. Wright (2019), "New Monetarist Economics," Oxford Research Encyclopedia of Economics and Finance.
- Kiyotaki N. and R. Wright (1993), "A Search-Theoretic Approach to Monetary Economic," American Economic Review, Vol. 83, No. 1, pp. 63-77.
-
- Paul A. Samuelson (1958), "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, Vol. 66, No. 6, pp. 467-482
-
-
-
Note that the model is slightly different from that seen in class. This formalizes exactly the adjustments on the basis of the excess supply and demand in the goods market through variations in production (principle of effective demand.)
-
-
Note that Phillip Cagan was a student of Milton Friedman and the expectation scheme used in his work was based on adaptive expecations (differently from the slides). The RE version is due to Tom Sargent
- Cagan, P., The Monetary Dynamics of Hyperinflation, in Milton Friedman (ed.), Studies in the Quantity Theory of Money, Chicago: University of Chicago Press, 1956
- Sargent T. J., The Demand for Money during Hyperinflations under Rational Expectations: I, International Economic Review, 1977 (Sargent's codes: ML and Bayesian estimation of Cagan's model with RE)
- Class handout: The Cagan's model
-
Help: in answering to (1.b), you can ignore Cagan's eq. (11) [just compute current expectations by using all values of past inflation]
-
-
-
From the conquest of the American inflation to the Great Moderation
-
Replicate the figures of Gali's book (Chapter 3)