Old "breaking news"


 

May 18: A new FAQ has been posted.


May 14: Next classes

    Monday, May 22 (last classes): (slides are ready)
    New-Keynesian models of monetary policy (III)
        1. Commitment versus discretion
        2. Extensions and forward guidance example
    Literature: Walsh (2010, Chapter 8, 357-379);
        Eggertson and Woodford (2003) (recommended reading)

 


May 11: Next classes:

    Monday, May 15
    New-Keynesian models of monetary policy (II) (slides are ready)
        1. Uniqueness?   
        2. Policy trade-offs and optimal policy
    Literature: Walsh (2010, 341-357; including Appendix 8.6.2)

 


 

 May 11: Suggested solutions to today's exercise is posted

 

May 9:

The student evaluations are here. Thanks a lot for the massive participation rate!!! We will
discuss them briefly Thursday, before starting on the exercise. So take a look at them,
and see if you may have forgotten saying something.
 
One subject, however, is not up for discussion. Many vent their frustration over
cancellations (despite replacements) which is fully understandable, but actually also
rather hurtful and serve no practical purpose whatsoever. Also, it has not been an
"elephant in the room". Anyone in the world who bothers looking at this page can track
the evolution of the course down to each and every class. But by refusing to debate it,
I admit I am actually making it one. So here is a nice one  (from Bansky's 2006 "Barely Legal"):
 


                 
 

May 8: A small document containing typos in slides have been posted. There was a small one (but a confusing one) in the May 1 slides.
 


May 8: Next classes:

  
    Thursday, May 11
    Exercise in class is posted

 



May 1:
A document containing the solution (and much more) to the never-ending exercise from April 27 has been posted.
 

May 1: Next lectures and classes

    Monday, May 8
    New-Keynesian models of monetary policy (I) (slides are ready - we complete May 1 slides)
        1. Model basics
    Literature: Walsh (2010, Chapter 8, 329-341; including Appendix 8.6.1)

 



April 29: The exercise from clearly has to be finished. So I will start Monday's lectures with that. Remember we got to the point where we identified the coefficients in the conjectured solution for prices (my weird symbols that you eventually kindly accepted as ps). Now we can solve the model and look at the economics and look at this issue of "policy ineffectiveness" I talked about.

Another change of plans (will he ever stop?), is that the material on the New Keynesian model sits much better with where we are now. So I would rather move the material on credit constraints to the end (the video lecture). If you have already prepared for this, don't worry it will not be wasted. As for the New Keynesian model, it is very introductory, so preparation is not strictly needed.

So I will begin on it after the exercise completion Monday. So the upcoming plans are (again, the working schedule has been updated).

Thanks so much for your patience and understanding.
 

April 29: Next classes/lectures
 

    Monday, May 1, Excercises in class
    Exercise from Thursday to be finished.

 



April 25
: Next classes/lectures
 

    Thursday, April 27, Excercises in class
    Exercise posted. Do as much as you can before class. The more you do, the more you learn

 

April 25: A new FAQ has been posted.
 



April 23
: Hi again. Hope you all had some nice holdidays. I have revised the plan, and as a replacement for last cancellation, I will make a video lecture as it seems close to impossible to find dates that does not "hurt" at least some.


April 23:
Next Lectures:
 

    Monday, April 24, Interest-rate policies (slides are ready, and for those with Matlab interest, the codes
                                                                      behind the figures and other stuff are available)
        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 10:
Today's lectures are unfortunately cancelled due to illness. We reconvene April 24; see the site later for updates.
 


 

April 1: Suggested solutions for the exercises Thursday 30 are posted.
 

April 1 (no joke): Next Lectures:
 

    Monday, April 3 (slides are ready, along with some expository notes to Chapter ll))
        1. Operating procedures and choice of monetary policy instrument
        2. Intermediate targets in policymaking    
    Literature: Walsh (Chapter 11, pp. 512--530)

 



March 29:
New F.A.Q.
 

March 29: Next Lectures:


    Thursday, March 30
        Exercises in class:
        QUESTION 2 from the exam set from June 15, 2006.

 



March 26:
Extra lectures on May 1, 13.15-15.00. Nobody "complained" about the suggestion, so we will use our usual day and time slot. I expect that we will have the same room, but that need to be confirmed. In due time I will get back on potential access plans to campus on this day. Thanks a lot for everybody's cooperation!.
 

March 21: New F.A.Q.
 

March 21: Next Lectures:


     Monday, March 27 (slides are ready)
       "0". Finish the part on staggered price setting from last lectures (please read the slides and accompanying notes beforehand)
        1. Money in the short run: Incomplete nominal adjustment (II)
            Sticky Prices and Wages: Calvo and alternatives
    Literature: Walsh (Chapter 6, pp. 241-261 - plus relevant appendix)

 

 


 

February 18: Scene from Ferris Bueller's Day Off.

We are not there yet? Right? Class?

 


 



March 17:
Next Lectures:

Notice that I have switched the exercises to be on next Thursday. I think the room we have Thursday is better suited for whiteboard writing.  Also note from the updated plan, that we will have an extra lecture later. TBA.


   Monday, March 20 (slides are ready, dated March 16)
         "0." Finish the Auberbach/Obsfeld model (last lecture's slides, 13 March, pp. 13- )
         1. Money in the short run: Incomplete nominal adjustment (I)
             Sticky Prices and Wages: Early models
    Literature: Walsh (Chapter 6, pp. 225-241 - plus relevant appendix),
    and the expository note: "Technical notes to Walsh (2010), Chapter 6"
 

     Monday, March 27
        1. Money in the short run: Incomplete nominal adjustment (II)
            Sticky Prices and Wages: Calvo and alternatives
    Literature: Walsh (Chapter 6, pp. 241-261 - plus relevant appendix)

 

    Thursday, March 30
        Exercises in class:
        QUESTION 2 from the exam set from June 15, 2006.

 

 

March 6:

    
    Next Lectures:


    Monday, March 13
        '0'. Price bubbles (from last lectures' slides; last two pages) (slides are ready)
        1. Inflation and quantitative easing
        2. Open-market operations at the zero lower bound for interest rates
    Literature: Auerbach and Obstfeld (2005, Am. Ec. Rev., 110-117, until Section IV)
 


 

March 6: Note that I have also posted the codes for solving the stochastic CIA model (of Chapter 3); see notes.

 


 

March 5: Due to Thurday's cancellation, we move stuff one teaching day forward, and make a slight adjudstment in curriculum. So, next lectures

     Monday, March 6: (slides are ready, labelled March 2)
        1. Public budget accounting, inflation and debt
        2 .Equilibrium seigniorage
    Literature: Walsh (Chapter 4, pp. 135-162)

 

 

March 1: Next lectures

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

 
    Monday, March 6
        1. Inflation and quantitative easing
        2. Open-market operations at the zero lower bound for interest rates
    Literature: Auerbach and Obstfeld (2005, Am. Ec. Rev., 110-117, until Section IV)

 


 

February 20: An FAQ has been posted.


    Monday, February 27 (slides are ready):    

        "0." Money in the utility function (end); from page 5- in slides of 20/2
            a. A stochastic model
            b. Dynamics and calibration (examples)
        Literature: Walsh (2010, Chapter 2, pp. 59-86, check the Appendix as well;
        i.e., get a grip on the linearization technique)

        1. Money in dynamic flex-price models (end)
            a. Welfare costs of inflation
            b. Cash-in-advance models
        Literature: Walsh (2010, Chapter 2, pp. 53-58, Chapter 3, pp. 91-115)
        (NB: Material on shopping-time models only recommended)
 



 

February 13: Data for today's lectures are available "next to" slides.


February 14: Next lectures

     Thursday, February 16 (slides are ready)
        "0". Doing the stuff on SVARs from the February 13 slides
        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 20
        1. Money in the utility function (continued)
            a. Potential non-superneutrality of money
            b. Dynamics and calibration: Examples
    Literature: Walsh (2010, Chapter 2, pp. 59-86. Check the Appendix as well; i.e., get a grip on (or relive) the log-linearization technique)

 


 

February 6: Next lectures (slides are ready)

    Monday, February 13
        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: The page you are watching now is from the internet, and is the first version of a long string of versions. Take a look around, and we'll be seeing each other on Monday.


February 2: Next lectures:

    Monday, February 6 (posted under slides)
        Introduction
    Literature: None (for the first and only time)