Notes and exercises

 

Various notes on the curriculum and exercises

 

Exercises

Exercise for March 11 (pdf, 60 Kb) [Note I have corrected a minor typo in the definition of rt after equation (5)]
    Solution for part (v) (pdf, 35 Kb)

 

Exercise for April 5 (pdf, 50 Kb)
    Exercise, April 5, 2011: On the simple sticky-wage MIU model - solution and discussion (pdf, 120 Kb).
    Exercise, April 5, 2001: Some graphical illustrations (pdf, 325 Kb)

 

Notes

Technical notes to Walsh (2010), Chapter 6 (to accompany slides of March 29) (pdf, 75 Kb)

 

The optimal monetary policy in the Barro and Gordon model (pdf, 50 Kb) (Updated April 12 as it is a maximization problem, not a minimization problem we have! Sorry, but to my defense I am not the first to have made such confusion as the literature half of the time minimizes loss functions, and the other half maximizes utility functions.)

 

Tecnical notes to Walsh (2010), Chapter 11 (to accompany slides of April 15)
    Equivalence of (11.11) and (11.10) in Walsh (2010) when (11.11) involves linear projections
    of the shocks on the nominal interest rate (pdf, 65 Kb)
    Deriving (11.21) in Walsh (2010) (pdf, 70 Kb)

 

Henrik Jensen (2011): Optimal Interest-Rate Setting in a Dynamic IS/AS Model (Teaching note for April 29) (pdf, 163 Kb)
    Typo: The coeffcient on output in the second equation of page 8 should be 1.35.

 

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, 2007, 2008, 2009 and 2010 are the most representative for the exam of this course. Note, however, that all these exams, except the 2010 one, were 4-hour exams. This year we only do a three-hour exam, and the exam set will be correspondingly reduced. Also note, that Walsh's book is this year is based on a new version, so there are some slight variations. I noted that the 2003 exam is a weird version of the set. So here it is (pdf, 70 Kb)