Notes, codes and exercises


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

Technical notes to Walsh (2010), Chapter 11 (accompanying notes to slides of April 13)

Henrik Jensen (2014): Optimal Interest-Rate Setting in a Dynamic IS/AS Model

Henrik Jensen (2012): Monetary Policy Effectiveness in a Dynamic AS/AD Model with Sticky Wages

Deriving the household's first-order conditions in the New-Keynesian model (accompanying notes to slides of April 23)


Use of codes require installation of MatLab software, which is available on campus. A free alternative to MatLab is Octave, but I have not tried the codes on that platform. Moreover, most codes require installation of Dynare, which is a free sofware package. An quick introduction to the use of Dynare for simulation of stochastic macroeconomic models (DSGE models) can be found on the Dynare site.



Exercise for April 9. A paper containing the solutions as well as the economics of those is found above as "Monetary Policy Effectiveness in a Dynamic AS/AD Model with Sticky Wages". It also offers a few perspectives on the related history of economic thought.

Exercise for May 7. Suggested solution.


Old exam sets (link working)

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 2003-5, 2006-14 are the most representative for the exam of this course. Note, however, that all these exams, except the 2010-2014 ones, were 4-hour exams. This year we again have a three-hour exam. Note that Walsh's book from 2010 an onwards is a newer version, and that the course have changed over time - so the sets get less and less representative going back in time. I noted that the 2003 exam is a weird version of the set. So here it is.