EC924 Monetary Economics
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Term 2 |
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Module lecturer |
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Aims |
The main objective of this module is to provide an understanding of the key aspects of monetary dynamic stochastic general equilbrium (DSGE) models, with a focus on recent contributions to the literature and their applications. |
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Learning outcomes |
Students should gain a knowledge of, and an ability to construct, manipulate and numerically solve, theoretical models in which there is a role for monetary policy or where fluctuations of nominal variables affect the real allocation of resources. |
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Contents |
This module builds on the final part of the Economic Analysis unit (Macro), where basic sticky price models are covered. Firstly the main tools used to obtain solutions (numerical methods) for Monetary DSGE models are introduced. The course will then focus on the main developments in the monetary economics literature particularly looking at labour markets, credit frictions and the banking sector. |
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Organisation |
Two hours of lectures per week. Please see Teaching Timetable. |
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Pre-requisites |
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Key readings |
We will mostly work from research papers (a complete reading list will be provided during the course). Nonetheless, students might find these two books useful: Walsh, Monetary Theory and Policy (MIT Press, 2nd edition 2003) and Gali, Monetary Policy, Inflation and Business Cycle (Princeton Press, 2008). |
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Assessment |
1 x Problem Set (20%) - Electronic Submission and a 2-hour written exam in May (80%). |
