# 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)