Old "breaking news"

 

I have posted a link to a very helpful teaching page (from another economist, Peter Ireland, who does not hide his teaching for the public :-) ) on mathematics in dynamic economic models.

 


 

Tuesday, May 17 (final day):
    1. Exercise: "QUESTION 2 from 2011 exam set in 'MAKØK 3, BLOK2' " (entire set, pdf file, 130 Kb)
    2. Talk about the exam



Friday, May 13, Lectures: New-Keynesian models of monetary policy (III) (slides are ready)
    0. Optimal policy under commitment (from slides of May 6)
    1.Targeting regimes and instrument rules
    2. Extensions
Literature: Walsh (2010, Chapter 8, pp. 364-379)


May 6:
 
May 10: Visit to Danmarks Nationalbank, Havnegade 5, 10.12 - 12.00 (yes, I did write 13 yesterday; I'll bring refreshtments on the 17.)


May 5:


Friday, May 6, Lectures: (Slides are ready)
New-Keynesian models of monetary policy (II)
    1. Policy trade-offs and optimal policy
    2. Commitment versus discretion
Literature: Walsh (2010, Chapter 8, 352-364; including Appendix 8.6.2)


April 8: I have posted a cleaned-up version of my erratic graphical endaveours concerning the policy effectiveness in New-classical models. (A new version with visible coefficients on page 2 is posted late same day.)

 

April 29: Coming lectures:

Tuesday, May 3, Lectures:  (Slides are ready)
New-Keynesian models of monetary policy (I)
    1. Model basics
    2. Uniqueness?
Literature: Walsh (2010, Chapter 8, 329-352; including Appendix 8.6.1)

 


April 28: The teaching note is available now. Note that I will not post slides, as I will go through the note (so the slides will be the technicalities of the note); so if you have the note handy, you can make your own notes on that,

Friday, April 29, Lectures: Interest rate policies (II)
    1.Optimal interest rate rule in simple model for policy analysis
    2. Application: Inflation targeting
Literature: Jensen (2011, Teaching note)

 


April 25:
 

The "notes with notes" from the exercises on (TUESday) April 19 are now posted on the slides page.

 

Tuesday, April 26, Lectures: Interest rate policies (I) (slides are ready)
    1.Price level (in)determinacy
    2.Liquidity traps
    3.The term structure of interest rates
Literature: Walsh (Chapter 10, pp. 453-475)

 


 

April 11: I have received the results of the course evaluation (pdf, 220 Kb). 18 students have responded, which I am very happy with. So as promised (since 18 > 15), there will be refreshments! These will, however, due to the late notice, be "served" on Friday, April 15.
 

April 15:

Tuesday, April 19:

Note that I first finish the stuff on intermediate targeting from the April 15 slides.
 
Then: Exercises/interactive teaching (NB: I'll derive the solutions for Rogoff conservatism and the Walsh incentive contract on the whiteboard - no slides):
Further solutions to credibility problems
    1.Delegation and independent central banks
Literature: Walsh (Chapter 7, pp. 297-323)

 

 

EASTER BREAK

 


April 15:

Friday, April 15: Lectures (slides are ready as are two notes containing some nasty algebra to prove a few claims made in slides)
    1.Operating procedures and choice of monetary policy instrument
    2.Intermediate targets in policymaking
Literature: Walsh (Chapter 11, pp. 512-530)


April 12:

Tuesday, April 12: Lectures
Monetary credibility problems (slides are ready, as is a small expository note - NB. Note is updated April 12)
    1.Inflation and discretionary monetary policy
    2.Reputational solutions to credibility problems
Literature: Walsh (Chapter 7, pp. 269-290)


April 7:
 

Friday, April 8: Lectures
0. Concluding remarks about policy ineffectiveness and the exercise of April 5 (see note with solutions and discussion)
1. Money in the short run: Incomplete nominal adjustment (III) (slides are ready)
    Sticky Prices and Wages: Calvo and alternatives
Literature: Walsh (Chapter 6, pp. 241-261 plus relevant appendix)

 


March 31:

 
Friday, April 1
LECTURES CANCELLED (see updated working schedule) - sorry, it is not an April's Fool joke. Note that we stick to the planned exercise session on Tuesday (simply because we have a better room for exercises on Tuesdays):

 

Tuesday, April 5
Exercises. An exercise on the simple model of one-period wage rigidity and the issue of policy ineffectiveness is uploaded on the notes page. It's good training in tracking demand and supply shocks in a simple economy (it is quite similar to standard IS/LM/AS analysis, but with microfoundations).


March 25:

Next classes:
 
 
Tuesday, March 29 (slides are posted, as well as a note on some technical details in Chapter 6)
1. Money in the short run: Incomplete nominal adjustment (II)
    Sticky Prices and Wages: Early models
Literature: Walsh (Chapter 6, pp. 225-241 plus relevant appendix)


March 14:

Next classes:
 

Friday, March 18: Lectures (slides are posted)
    1.Cash-in-Advance Models [certainty case ended (p. 17 and onwards in March 15 slides] and stochastic case covered)
Literature: Walsh (2010, Chapter 3, pp. 108-111)

 

Tuesday, March 22: Exercises
"QUESTION 2" from June 15 exam, 2006 (CIA constraint on investment purchases) (click on "2006 Sommer Eksamensopgave")


March 14:

Next classes:


Tuesday, March 15: Lectures: (slides are posted)
    1 .Shopping-time models (brief)
    2.Cash-in-Advance Models (certainty case begun)
Literature: Walsh (2010, Chapter 3, pp. 91-108)


March 11: I have posted a solution to question (v) of today's excercise.
March 11: I have posted a document containing typos in the slides. Hopefully this will not be a long document!


March 1:

Next lectures:

Tuesday, March 8

0. We finish the Feb. 25 slides on the steady-state in simple MIU model (p. 12 and onwards)
1.Money in the utility function (continued) (slides are posted)
    a. Welfare costs of inflation
    b. Potential non-superneutrality of money
    c. Dynamics and calibration
Literature: Walsh (2010, Chapter 2, pp. 52-86, so check the Appendix as well; i.e., get a grip on the linearization technique)
 


February 21:

Next lectures:

Friday, Feb. 25
1.Money in the utility function (start) (slides are ready)
    a. The basic money in the utility function model
    b. Optimal behavior and steady-state equilibrium properties: Long-run superneutrality of money
Literature: Walsh (2010, Chapter 2, pp. 33-52)


February 1:

Introductory slides are posted (and corrected, in the sense that they erronesouly said that Tuesdays's lectures were only in even weeks; they are in all weeks)

Next lecture: Tuesday, February 22:
    1.What are the "stylized facts" about money and economic aggregates?
        Does money matter for output and prices?
        Are the responses to money shocks different in the short and long run?
2.Empirical problems/issues
Literature: Walsh (2010, Chapter 1)