Welcome to the home page for Makěk3, Fall 2010 (blok 2)

Business cycles and monetary stabilization policies

Henrik Jensen
Department of Economics
K°benhavns Universitet

It is crucial to access this page on a regular basis (so bookmark it now), as I use this page, and not the Absalon page, as the learning tool during the course. This is for the simple reason that Absalon is closed for the public, and I am a strong believer in openness in teaching (in particular at a publicly funded university). I hope this will not be a source of inconvenience for you; actually, one can navigate through this page at warp speed (and without logging in).

On this page you can access the following areas:

Breaking News
Schedule and contact information
About the course and main curriculum
Lecture slides, exercises, notes, etc.
Various links

A separate page accumulates "Old news" - a collection of the Breaking News posted during the course.

Breaking News

March 3:

Finally the grades: HERE (pdf 35 Kb)


January 17

Thanks for a most pleasant course. I really enjoyed meeting you all, and I sincerely hope you will do well at the exam!

Advise about the exam, January 17 (pdf, 40 Kb)


February 21: We are working hard to get the results of the exam finished. Sorry that my vacation messed up the timing. In the meantime, here are the exam set and the suggested answers:


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Schedule and contact information (valid from November 15)

Lectures and exercises are done by Henrik Jensen on the following occasions:

Mondays 9-12, in Aud 8 (these will be for exercises except November 15)

Tuesdays 13-16 in Aud 4 (these will be for lectures only)

Note that all slots start 15 minutes past the hour. Depending upon the contents and progress of the classes, we may take two breaks during the sessions, or just one (and end earlier).

Also note that when we have exercises, I expect "audience participation" in the sense that YOU should also be active at the blackboard (you learn more that way, than just scribbling down what I write). 

The working schedule for the course (pdf, 68 Kb). This version; January 17, 2011.

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About the course and main curriculum

The official course description is found here (pdf, 60 Kb).

The main material is the book by Jordi GalÝ: "Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework" Princeton University Press, 2008. This is a "must have"! Depending on your/my wishes, we may go through some extra stuff at the end of the course (but time could be a binding constraint there).

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Lecture slides, exercises, notes, etc.

Lecture slides

Lecture 1 (November 15): Introduction (pdf, 1,5 Mb) (this version comes with my scribblings; a "first" and "last")

Lecture 2 (November 16): A classical model (pdf, 450 Kb) (few typos corrected and last page on exercises corrected)

Lecture 3 (November 30): The Basic New Keynesian Model (pdf, 305 Kb)

Lecture 4 (December 7): Monetary Policy Design in the Basic New Keynesian Model (pdf, 120 Kb)

Lecture 5 (December 14): Monetary Policy Trade-offs, optimal policy and credibility issues (pdf, 430 Kb)

Lecture 6 (January 10 and 17): Sticky Prices and Sticky Wages in the New-Keynesian model (sticky version with notes from Jan. 10, pdf 1,5 Mb; clean version with typos corrected, pdf 400 Kb)



No material posted.



Deriving πt on p. 31 in GalÝ (2008): Application of the Method of Undetermined Coefficients (pdf, 70 Kb)

Typos in slides, updated January 17, 2011 (pdf, 65 Kb)

Complete financial markets and consumption risk sharing, January 7, 2011 (pdf, 85 Kb)

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Various links

Jordi GalÝ, author of our textbook.

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Suggestions concerning the page: Henrik Jensen.

Created: November 11, 2010
Last edited: March 3, 2011

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