Old "breaking news"

 

May 16: The teaching note "Optimal Interest-Rate Setting in a Dynamic IS/AS Model" has been updated (a typo has been corrected; see the notes page for more info)


Next classes

Thursday, May 24, Last lectures: New-Keynesian models of monetary policy (III) (slides are ready)
    0. The commitment solution not covered on May 15 (last part of the slides of that date).
    1. Targeting regimes and instrument rules
    2. Extensions
Literature: Walsh (2010, Chapter 8; pp. 364-378)
   + brief talk about the exam


Tuesday, May 15, Lectures: New-Keynesian models of monetary policy (II) (slides are ready)
    1. Policy trade-offs and optimal policy
    2. Commitment versus discretion
Literature: Walsh (2010, Chapter 8, 352-364; including Appendix 8.6.2)

 


May 8: A list of typos in slides (not very long, and hopefully not growing), is posted on the slides page.

 

May 7: There is one last change in the plan for the rest of the semester (only in terms of reshuffling), so be sure that you have the latest working schedule.

 

Next classes

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

Thursday, May 10, Visit to Danmarks Nationalbank (be in lobby no later than 10.10)
 


Thursday, May 3, Lectures: Interest rate policies (II) (slides are ready)
    1. Optimal interest rate rule in simple model for policy analysis
    2. Application: Inflation targeting
Literature: Jensen (2011, "Optimal Interest-Rate Setting in a Dynamic IS/AS Model" - see notes section)


Thursday, 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: The Internal Evaluation. Again, THANKS for partcipating. Your input is very valuable!

April 12: The promised solutions to the cancelled exercises April 10 are ready. It is a note that is part of the curriculum, so you should read it.

 

Next classes

Thursday, April 19, Lectures (slides are ready, as are two accompanying notes with additional computations)
    1.Operating procedures and choice of monetary policy instrument
    2.Intermediate targets in policymaking
Literature: Walsh (Chapter 11, pp. 512-530)

 


Tuesday, April 17, Exercises/interactive teaching:
Further solutions to credibility problems
    1. Delegation and independent central banks
    I will derive the solutions for the "Rogoff conservative central bank," and "Walsh's incentive contract"
    on the whiteboard - try computing them when reading the curriculum before
Literature: Walsh (Chapter 7, pp. 297-323)
 


Thursday, April 12, Lectures (slides are ready)
Monetary credibility problems
    1. Inflation and discretionary monetary policy
    2. Reputational solution to credibility problems
Literature: Walsh (Chapter 7, pp. 269-290)


 

CLASSES, EXERCISES, CANCELLED TODAY APRIL 10
I WILL POST DETAILED ANALYTICAL AN GRAPHICAL SOLUTIONS ON THE WEB TOMORROW (AT LATEST)
SORRY FOR LATE NOTICE. SORRY!!!!

SEE YOU THURSDAY!!!!

 

Tuesday, April 10, Excercises:
See exercise posted here.
 


Tuesday, April 3, Lectures:
Money in the short run: Incomplete nominal adjustment (III) (slides are ready)
    1. Sticky Prices and Wages: "Calvo" and alternatives
Literature: Walsh (Chapter 6, pp. 241-261 - plus relevant appendix)



Thursday, March 29, Lectures: (slides are ready, as is an accompanying note that contains come derivations)
Money in the short run: Incomplete nominal adjustment (II)
    1. Sticky Prices and Wages: Early models
Literature: Walsh (Chapter 6, pp. 225-241 - plus relevant appendix)
 


Tuesday, March 27, Lectures: (slides are ready)
Money in the short run: Incomplete nominal adjustment (I)
    1. Flexible prices and imperfect information; the Lucas model
Literature: Walsh (Chapter 5, pp. 195-203 plus relevant appendix)


March 17: A note on the steady-state properties of the simple CIA model can be found under notes.

Next classes:

 

Thursday, March 22:
Exercises:
"QUESTION 2" from June 15 exam, 2006 (CIA constraint on investment purchases)
Links to old exam questions are here at the bottom.


Next classes:

Tuesday, March 20: (slides are ready)
1. Cash-in-Advance models (stochastic case covered)
Literature: Walsh (2010, Chapter 3, pp. 108-115).


March 14: Updated working schedule is uploaded that includes the announced extra sessions (especially for class exercises), as well as the final date for our visit to Danmarks Nationalbank.

 

March 5: Note that there are course evaluations in this week. If more than 17 respond, I'll give refreshments to all at a later date (I know you have little to evaluate on so far, but please join in and at least tell me a little about your expectations).

 

March 8: Next lectures and classes:

 

Thursday, March 15: (slides, named "March 8", are ready)
1. Shopping-time models (brief)
2. Cash-in-Advance Models (certainty)
Literature: Walsh (2010, Chapter 3, pp. 91-108)


March 1: Working schedule is updated.

 

March 1: Next lectures:

Tuesday, March 6: (slides are ready)
1. Money in the utility function (continued)
    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 9 - slides are ready

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?
    Empirical problems/issues
Literature: Walsh (2010, Chapter 1)
 


March 1:   (spend some time in weeks 7/8 to get a grip on the dynamic programming used in this lecture; e.g., check out the links to Peter Ireland's notes linked to here) - slides are ready

1.Money in the utility function (start)
    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)