Old "breaking news"

 


 

May 18: Next - and last - classes

Thursday, May 21: Monetary policymaking and the recent crisis (slides are ready)
    The case for quantitative easing
Literature: A. J. Auerbach and M. Obstfeld (2005): "The Case for Open-Market Purchases in a Liquidity Trap" American Economic Review 95, 110-137. Downloadable from library.
Also: Brief talk about exam: Hints and advice



May 17:
The final curriculum has been posted.


May 17: The results of the external evaluation is in. Only seven respondents, but that's ok. I have always put more emphasis on the internal evaluation. There is not much to comment on. I just have two remarks:
    1. There was never two exercises cancelled due to illness, only one. And I think the offer
         to correct your solutions instead was a good one, as we otherwise would have had to drop
        other material (from my side it also took much more time; admittedly, it also required some
        activity from you). On a related note, remark that you end up having 44 hours worth of
        teaching/counselling - two more than required.
    2. I am sorry to see that one student is very disappointed with the course. I try to be as open about
        the course contents by having public course pages, so with a little effort one should be able to get
         a good picture of what one is signing up for. It will become much worse from the fall and onwards
        with the new study reform, where you have to sign up (and commit) to courses you only know
        about from a short description.
 

May 16: A new FAQ is posted.


April 10:
In the internal evaluation my personal integrity is being questioned. And I must admit, rightly so! I promised refreshments in an e-mail of March 16, but I never delivered. I swear that it is not a matter of poor credibility but rather a matter of poor memory. This may be related, of course, but my intentions are always honorable. But surely, intentions should be carried out in practice. So this post is hereby an IOU, which will remain on this (public) site until I have paid back. Payback will not be on April 13 though, as that date features refreshments due to the evaluation performance.
(Payback was on May 21)


May 13: Next classes

Monday, May 18: Exercises in class
We look at QUESTION 3 from Summer 2012 exam
 


May 11: Next classes


Monday, May 11: Lectures (slides are ready)
    Credit constraints and the macroeconomy
Literature: Walsh (2010, Chap. 10, pp. 477-502; with emphasis on 492-502)
 


May 7: Solution to May 7 exercise is posted.


April 30: Next classes


Monday, May 4. Lecures: New-Keynesian models of monetary policy (III) (slides are ready)
    1.Commitment versus discretion
    2. Extensions
Literature: Walsh (2010, Chapter 8, 357-379; including Appendix 8.6.2)

 


 

April 24: Next classes:


Monday, April 27, Lectures: New-Keynesian models of monetary policy (II): (slides are ready)
    0. On equilibrium uniqeness in the simple model (cf. slides from April 23)
    1. Policy trade-offs and optimal policy
Literature: Walsh (2010, Chapter 8, 352-357; including Appendix 8.6.2)

 


 

April 22: Next classes:


Thursday, April 23, Lectures: New-Keynesian models of monetary policy (I) (slides are ready as is an accompanying note)
    1. Model basics
    2. Uniqueness?
Literature: Walsh (2010, Chapter 8, 329-352; including Appendix 8.6.1)
 


April 20: The votes are in. A solid majority for another session with exercises: Results. I will post a revised schedule later today. Thanks again for a big turnout! (Update: Adjusted schedule is posted.)
 

April 19: A paper containing the solution and intuition (and more) pertaining to the April 9 exercise has been posted.


April 14:
You should have received a mail with a link to the vote on exercises. Voting runs until Sunday at midnight.

 

April 17: Next classes

Monday, April 20, Lectures: Interest rate policies (slides are ready)
    1. Optimal interest rate rule in simple model for policy analysis
    2. Application: Inflation targeting
Literature: Jensen (2014, "Optimal Interest-Rate Setting in a Dynamic IS/AS Model" - available now)

 


April 10: The internal evaluation is here. Thanks a lot for the many responses! The number was way over the critical 22, so there will be refreshments monday.
 

April 10: The main point I take away from the evaluations is that you want more excercises. We will discuss this briefly on Monday 13th.


April 10:
About the exercise of April 9: You solve it as good as you can by yourself, and you send me your solution by email (as a pdf file) Monday afternoon the latest. I will then comment on your solutions and send back these comments to each of you. Feel free to include questions in what you send in. In addition, of course, I will post a solution on the web. [NOTE: DEADLINE IS EXTENDED TO MIDNIGHT MONDAY 12 APRIL]

 

April 10: Next classes

Monday, April 13, Lectures (slides are ready as is an accompanying note with technicalities - the newly posted slides are the same in content as those labelled March30, only the dates are changed)
    1. Operating procedures and choice of monetary policy instrument
    2. Intermediate targets in policymaking
Literature: Walsh (Chapter 11, pp. 512-530)

 


 

April 3: Updated schedule posted.


April 3:
Next classes:

Thursday, April 9, Exercises in class
Exercise for April 9.
 

APRIL 9: I AM HOME WITH A FEVER. CHECK YOUR MAIL

April 8:
The internal evaluation is here. Thanks a lot for the many responses! The number was way over the critical 22, so there will be refreshments tomorrow.
 

April 8: The main point I take away from the evaluations is that you want more excercises. We will discuss this briefly tomorrow.
 


March 24: Remember to fill out the evaluation scheme. Written comments and suggestions are most welcome. (Remember the incentive scheme and the number 22: Do not play non-cooperative Nash!)
 


March 24: Slight change in course plan. We will have lectures Monday, March 30 and exercises Thursday, April 9. Updated schedule posted.


March 24:
Next classes

Thursday, March 26, lectures
Money in the short run: Incomplete nominal adjustment (III) (slides are ready)
    0. Finish last part of Taylor model from slides of March 23
    1. Sticky Prices and Wages: "Calvo" and alternatives
Literature: Walsh (Chapter 6, pp. 241-261 - plus relevant appendix)

 



March 19:
A new FAQ is posted on the 2006 exam question done Monday. You are, of course, still welcome to pose questions.


March 19: Next classes
 
Monday, March 23, lectures: (slides are ready as is an accompanying technical note)
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)
 


 

March 16: Next classes

Monday, March 16
Exercises in class: "QUESTION 2" from June 15 exam, 2006 (CIA constraint on investment purchases)
Proceed as in e-mail of March 16, 10.50 (we do not meet in person today, but digitally on this exercise).
 


March 9: Next classes:


Thursday, March 12
Incomplete nominal adjustment (I) (slides are ready)
    1. Flexible prices and imperfect information; the Lucas model
Literature: Walsh (Chapter 5, pp. 195--203 plus relevant appendix)
 


 

March 3: A F.A.Q. entry has been posted.
 

March 3: Next classes:

Monday, March 9: (slides are ready)
    0. (left over from last classes: inflationary bubbles)
    1. Optimal taxation and seigniorage
    2. Robustness of the Friedman rule?
Literature: Walsh (Chapter 4, pp. 170-184; pp. 188-191)

 


February 26
The codes for simulating the stochastic models of Chapters 2 and 3 in Walsh (2010) have been posted on the "Notes, Codes and Exercises" section.

 

February 26

Next classes

Monday, March 2 (slides are ready)
    1. Public budget accounting, inflation and debt
    2. Equilibrium seigniorage
Literature: Walsh (Chapter 4, pp. 135-162)


February 24: I found a typo in the slides of February 19. So, I have started a document dedicated to typos in the slides section. Hopefully, it won't become a long document.

February 23:
"Assignment" for next lecture on February 26. Think of some parameters you would change in the MIU calibration in Walsh (2010, p. 72, Table 2.2). Then we will run some simulations to see what happens.

February 23:
Some links to articles on the (in)stability properties of money in the MIU model have been posted.


February 23:

Next classes:


Thursday, February 26 (slides are ready)
    0. Simulation of MIU model (demonstration)
    1. A Cash-in-Advance Model
Literature: Walsh (2010, Chapter 3, pp. 91-115) (NB: Material on shopping-time models "only" recommended)

 

February 13:
I have posted the promised additional readings (for your interest and pleasure only) on money creation etc. on the links page.

 

February 11:
The results of the voting are here. The winner is "Credit constraints and the macroeconomy", so the curriculum and working schedule have been revised.


 


 

February 19:

Next classes:

Monday, February 23 (slides are ready)
    0. Conclusion of last lectures' slides
    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 (relive the) the linearization technique)

 


February 19:

Today's extra classes are unfortunately cancelled. Course schedule updated


February 13:

Next classes:

Monday, February 16 (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)

 


 

February 11:
Next classes:

Thursday February 12 in CSS 18.01.11 (our regular Thursday meeting room in odd weeks) (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?
2. Empirical problems/issues
Literature: Walsh (2010, Chapter 1)

 


 

February 2:
Remember to vote on which subject we should cover as "Subject 6".

"International Policy Coordination (Walsh, Chap. 9.3)" or
"Credit constraints and the macroeconomy (Walsh, Chap. 10.5-10.6)"?

The subjects are briefly described in the slides of the Introductory lecture. You should by now have received an e-mail containing the link to the voting. Voting ends February 10, 12.00.


January 30:
You are seing this page for the first time.


January 30:
We meet for the first time to an introductory lecture on Monday, February 2, 13.15-15.00 in CSS 2-0-63 (our regular Monday meeting room in all weeks)


Next classes, Thursday February 12 in CSS 18.01.11 (our regular Thursday meeting room in odd weeks)
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)

 

January 30:
As you can see, lectures on February 9 are cancelled. We have extra classes on Thursday, February 19, 10.15-12.00 in CSS 22.0.19. Check the working schedule for the full plan as of now.