Monetary Economics: Macro Aspects

Spring, 2008

Henrik Jensen
Department of Economics
University of Copenhagen



Various notes on the curriculum


Exercise solved on February 26 (pdf  115 Kb). Detailed derivations for the stochastic CIA model. Note that this is the tedious version with three state variables (as Walsh sets up in the main text), and not the version with two state variables, which David elegantly solved in class. Hopefully, this longer solution will give you some insights after all. (Revised version posted March 10. This version corrects typo in equation (3.59).)


Technical notes to Walsh (2003, Chapter 5). To supplement slides of March 11 (pdf file, 70 Kb).


Equivalence of (9.11) and (9.10) in Walsh (2003) when (9.11) involves linear projections of the shocks on the nominal interest rate. To supplement slides of March 25 (pdf file, 65 Kb).


Deriving (9.21) in Walsh (2003). To supplement slides of March 25 (pdf file, 60 Kb).


The Obstfeld-Rogoff model: Derivation of relative demand, the price index, and an example of log linearization. To supplement slides of April 22 and 24 (pdf file, 85 Kb)


Notes to Svensson's (1997) Appendix B. To supplement slides of May 13 (pdf file, 70 Kb)




Material from visits


Presentation by Hugo Frey Jensen, April 29, Danmarks Nationalbank (pdf file, 220 Kb).

Presentation by Jesper Berg, April 29, Danmarks Nationalbank (pdf file, 1 Mb).


Two working papers mentioned by Hugo Frey Jensen during our April 29 visit to Danmarks Nationalbank:

"The monetary-policy regime and the development in central macroeconomic variables in the OECD countries 1970-2005" by Anders Møller Christensen and Niels Lynggård Hansen
"Identifying monetary policy in a small open economy under fixed exchange rates" by Niels C. Beier and Peter Ejler Storgaard


"Monetary policy and models." Presentation by Kjersti Næss and Kjersti Haare Morka, Norges Bank, at their visit on May 8 (pdf file, 950 Kb)

Suggested background reading is this speech by Jarle Bergo; in particular the last part starting from "Chart: Trade-off in Inflation Report 3/06".


Old exam sets

Go here (opens new window) for the collection of previous exam sets and suggested solutions. Note that the exam in 2006 was "open book" and therefore slightly harder than the earlier exams. Hence, the exams in 2003, 2004, 2005 and 2007 are the most representative for the exam of this course.