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Lehrende: Dr. Thanh Son Pham
Veranstaltungsart:
Vorlesung + Übung
Anzeige im Stundenplan:
Semesterwochenstunden:
3
Credits:
6,0
Unterrichtssprache:
Englisch
Min. | Max. Teilnehmerzahl:
- | 78
Kommentare/ Inhalte:
Course outline
• Introduction to money and monetary economics
-The nature of money: what constitutes money, why people hold money.
-Demand and supply for money: the quantity theory demand for money, the transactions theories of money demand, creation and control of the monetary base by the central bank, the banking system and financial intermediation, the base-multiplier approach to money supply determination and Monetary policy instruments.
-Classical theory of money: the Classical dichotomy, Walras’ law.
• Monetary policy 3
-Money, Inflation and Welfare: neutrality and super neutrality of money, welfare costs, the Laffer Curve and the inflation tax.
-Classical models and monetary policy: money-in-utility and cash-in-advance models, real business cycle theory, Lucas misperception model.
-The Keynesian approach to monetary policy - nominal rigidities: Keynesian aggregate supply function and the Phillips curve, menu costs and sticky prices, multi-period pricing and the persistence of monetary policy shocks.
-The new Keynesian approach to monetary policy - nominal rigidities: New Keynesian Phillips curve, IS Curve, Taylor rules, financial accelerator models.
• Issues in monetary economics (advanced)
-Time inconsistency in monetary policy: Inflation bias, the central bank independence. Monetary policy rules: interest rate targeting and monetary targeting. (rules versus discretion).
-Uncertainties in monetary policy design: News versus noise in data revisions. Model estimation bias. Model mispecifications (wilderness of macroeconomic models under different assumptions of expectation and information).
-Term structure of interest rates: Explanation of the yield curve: expectations hypothesis and the segmentation hypothesis
Lernziel:
The course focuses on the issues of money and monetary policy implementation in the closed economy contexts. The aims and objectives of the course are as follows
• Understanding the theories that relate to the existence of money, explaining why it is demanded by individuals, how it is created.
• Understanding the monetary transmission mechanism, whereby decisions made by the monetary authorities concerning money supplies or interest rates can have real effects on the economy
• Developing a number of macroeconomic models through which monetary policy can be evaluated.
• Understanding of the uncertainties in conducting optimal monetary policy for the Central banks (CBs).
Vorgehen:
Classroom teaching and learning
Literatur:
Main reading
1. Lewis M. and Mizen P. Monetary Economics. Oxford. 2002.
2. Goodhart C. Money, Information and Uncertainty. MacMillan, 1989.
3. Mishkin F. The Economics of Banking and Financial Markets. 6th ed. rev., Boston., 2003.
4. Carl Walsh. Monetary Theory and Policy, 3rd edition, MIT Press, 2010.
Additional references will be provided later in form of academic papers.
Zusätzliche Hinweise zu Prüfungen:
A two-hour closed written examination. In addtion, there will be bi-weekly problem sets handed out to students to measures students' contribution to the lectures and provide bonus points for the final grade.
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