Notes, codes and exercises

Notes

Technical notes to Walsh (2010), Chapter 6 (accompanying notes to slides of March 24)
 

Equivalence of (11.11) and (11.10) in Walsh (2010) when (11.11) involves linear projections of the shocks on the nominal interest rate (accompanies slides of April 7) [Note: Corrected version, April 7]
 

Deriving (11.21) in Walsh (2010) (accompanies slides of April 7)


Deriving the household's first-order conditions in the New-Keynesian model (accompanies slides of May 5)
 

Henrik Jensen (2012): Monetary Policy Effectiveness in a Dynamic AS/AD Model with Sticky Wages (curriculum; the note shows the solution to the exercises of April 2 plus more).


Henrik Jensen (2014): Optimal Interest-Rate Setting in a Dynamic IS/AS Model (curriculum for April 16 lectures).

 

Codes

Codes for computing the stochastic MIU model of Chapter 2 (zip file)

Codes require Matlab (or Octave) and Dynare to run. Matlab is available on campus, and Dynare is an open-source application.

 

Codes for computing the stochastic CIA model of Chapter 3 (zip file)

Codes require Matlab (or Octave) and Dynare to run. Matlab is available on campus, and Dynare is an open-source application.

 

Exercises

Exercise for April 2. The note above, Monetary Policy Effectiveness in a Dynamic AS/AD Model with Sticky Wages, gives the solutions (also for nominal interest rates, and put the effectivess of monetary policy rules into a context of recent history of economic thought).

 

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, 2010, 2011 and 2012 are the most representative for the exam of this course. Note, however, that all these exams, except the 2010, 2011, 2012 and 2013 ones, were 4-hour exams. This year we again have a three-hour exam. Also note that Walsh's book from 2010 an onwards is a new version, so there are some variations. I noted that the 2003 exam is a weird version of the set. So here it is (pdf, 70 Kb)