Old "breaking news

 

 

May 23: Solutions to May 23 exercises are posted.


May 23:
Next (and last) classes:

Thursday, May 26
    Exercises in class (QUESTION 3 from Summer 2014 exam), and advice on the exam.
We meet in the usual Thursday-in-odd-weeks room: CSS 2-0-63

 

 


 

April 27: Solution to exercises has been received. Thanks! I will return corrected and commented versions within a week.


April 27:
Updated plan available.


April 28:
Next lectures:


Thursday, May 2, Lectures: New-Keynesian models of monetary policy (II) (slides are ready)
    0. On equilibrium uniqeness in the simple model (cf. slides dated April 25)
    1. Policy trade-offs and optimal policy
Literature: Walsh (2010, Chapter 8, 352-357; including Appendix 8.6.2)

 


 

April 27: Next lectures:


Monday, April 28, Lectures: New-Keynesian models of monetary policy (I) (slides are ready - labelled April 25 - as is a note on finding the households' first-order condition)
    1. Model basics
    2. Uniqueness?
Literature: Walsh (2010, Chapter 8, 329-352; including Appendix 8.6.1)
 

 


April 17: Suggested solutions to April 11 exercise have been posted.

April 19: Next lectures:


Thursday, April 21, Lectures: Interest rate policies (EXTRA LECTURES IN CSS 2-0-63 15.15-17.00) (slides are ready)
    "0" We finish material on intermediate targets in policymaking (from April 18 slides)
    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 here)


 

April 15: I have made a change in the schedule: The material on "Credit constraints and the macroeconomy" is moved to after the New Keynesian material. See the new April 15 schedule.

April 15: The internal evaluation has been made available to me. Here it is for you to see. Look over it, and see if it brings up something you would like to comment on on Monday (or privately by mail).

April 15: Next lectures:

Monday, April 18 (slides are ready, as is an accompanying technical note)
    "0" We discuss points from the internal evaluation
    1. Operating procedures and choice of monetary policy instrument
    2. Intermediate targets in policymaking
Literature: Walsh (Chapter 11, pp. 512-530)
 


April 13: About the exercise in class, QUESTION 2 from the exam on June 15, 2006: Please send me any question you may have before the end of Friday, after which I will post a suggested solution.


 

April 13: Next lectures:


Thursday, April 14 (slides are ready):
    1.Money in the short run: Incomplete nominal adjustment (III)
        Sticky Prices and Wages: Calvo and alternatives
Literature: Walsh (Chapter 6, pp. 241-261 - plus relevant appendix)

 


April 10: Next lectures:


Monday, April 11:
Exercises in class, QUESTION 2 from the exam on June 15, 2006 (note that this was from a four-hour, open-book exam. Prepare, so you can get your questions answered.

 

March 29: An updated schedule is posted. Note that we will have extra lectures Thursday, April 21, 15.15-17.00 in CSS 2-0-63. I sincerely hope this will not clash with too many students' schedules.
 


April 3: Next lectures:

Monday, April 4 (slides are ready: note that these are accompanying by a technical note containing various computations):
    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 29: Next lectures:

Thursday, March 31 (slides available labelled March 21)
    Incomplete nominal adjustment (I)
        1. Flexible prices and imperfect information; the Lucas model
    Literature: Walsh (Chapter 5, pp. 195-203 plus relevant appendix)
 

 


March 21: LECTURES ARE UNFORTUNATELY CANCELLED TODAY
 

March 16: A new FAQ entry is up.

 


March 13: Revised schedule is up. Note that one instance of exercises will be replaced by a (voluntary) "midterm paper" to be handed in in the end of April. More info to follow.


March 16:
Next lectures:

Thursday, March 17 (slides are ready)
    0. Price bubbles (from last lectures' slides)
    1. Optimal taxation and seigniorage
    2. Open-market operations at the zero lower bound for interest rates
Literature: Walsh (Chapter 4, pp. 170-175); Auerbach and Obstfeld (2005, AER pp. 110-117, Section IV))
 

 


 

March 13: Next lectures:


Monday, March 14 (slides are ready)
    1. Public budget accounting, inflation and debt
    2. Equilibrium seigniorage
Literature: Walsh (Chapter 4, pp. 135-162)

Thursday, March 17
    1. Optimal taxation and seigniorage
    2. Open-market operations at the zero lower bound for interest rates
Literature: Walsh (Chapter 4, pp. 170-175); Auerbach and Obstfeld (2005, AER pp. 110-117, Section IV))

 


March 2: Simulation programs for runnning the CIA model from Chapter 3 in Walsh are posted.


March 1:
The first FAQ entry has been posted


March 11:
Next lectures:


Monday, March 14 (slides will be up no later than Sunday the 13th at 18.00)
    1. Public budget accounting, inflation and debt
    2. Equilibrium seigniorage
Literature: Walsh (Chapter 4, pp. 135--162)

Thursday, March 17
    1. Optimal taxation and seigniorage
    2. Open-market operations at the zero lower bound for interest rates
Literature: Walsh (Chapter 4, pp. 170--175); Auerbach and Obstfeld (2005, AER))

 


March 6: Next lectures:

Monday, March 7 (slides are ready marked March 3)
    1. A Cash-in-Advance Model
Literature: Walsh (2010, Chapter 3, pp. 91-115) (NB: Material on shopping-time models only recommended)


 


 

February 24: Next lectures

Monday, February 29 (slides are ready - dated February 18)
We conclude the material on the steady state from page 12 in the slides and onwards:
1. Money in the utility function (start)
    b. Optimal behavior and steady-state equilibrium properties: Long-run superneutrality of money
Literature: Walsh (2010, Chapter 2, pp. 33-52)

Monday, February 29 (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: Examples of simulations (programs are uploaded for the interested)
Literature: Walsh (2010, Chapter 2, pp. 52-86, so check the Appendix as well; i.e., get a grip on (or relive the) the linearization technique)

 


 

February 21: The Working Schedule has been updated

February 21:
Next lectures

Monday, February 22 (slides are ready - dated February 18)
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)

Monday, February 29
1. Money in the utility function (continued)
    a. Welfare costs of inflation
    b. Potential non-superneutrality of money
    c. Dynamics and calibration: Examples of simulations
Literature: Walsh (2010, Chapter 2, pp. 52-86, so check the Appendix as well; i.e., get a grip on (or relive the) the linearization technique)

 


February 21: The Working Schedule has been corrected (my subconscious preference for two Easters has been appropriately suppressed)
 


February 14: Next lectures:

February 15 (slides are ready as are links to some of the papers mentioned in slides):
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 5: Site is up!

February 5: Preliminary schedule and curriculum are posted here.

February 5: Next (and first) lectures are on Monday February 8, 13.15-15.15, CSS 2.1.12