Money as a medium of exchange. Money as a store of value. The optimal quantity of money. Monetary policy in a classical DSGE model. Monetary policy in a new Keynesian DSGE model. Causes for price stickiness and wage stickiness. Coordination failures. Issues in communication policy.
- “Foundations of Modern Macroeconomics”, Ben J. Heijdra, Oxford University Press, 2009 [ch. 11]
- “Macroeconomic Theory: A Dynamic General Equilibrium Approach”, Michael Wickens, 2012 [ch. 8, 13]
- "Monetary Policy, Inflation, and the Business Cycle: an introduction to the New Keynesian Framework", Jordi Galì, Princeton University Press, 2008 [ch. 1, 2, 3]
- papers studied in the course
Learning Objectives
The course aims at introducing students to the main issues about money and monetary policy, in a classical framework and in a new Keynesian framework. Other topics concerning the reasons for public interventions are considered as well.
Prerequisites
It is recommended to have taken the exams of Mathematics for Economics and Macroeconomics I before this course.
Teaching Methods
Lectures and discussions.
Further information
Attendance is highly recommended.
Type of Assessment
Students are required to write an essay, to prepare a presentation of a published paper, and to take a brief oral exam.
Course program
The detailed program can be found in the MOODLE e-learning site of the course.