20297 - MONETARY POLICY
CLMG - M - IM - MM - AFC - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT - GIO
Course taught in English
Go to class group/s: 31
The course deals with general literature on the theory of monetary theory and discusses the monetary institutions as well as recent practical problems of monetary policy action in the euro area and in other Countries and currency areas. The course aims at providing the students with the factual knowledge and the appropriate theoretical schemes to interpret the monetary policy of industrialized Countries and the most recent theoretical developments.
- Motivation: beyond RBC Theory. The effect of money on output, the role of demand shocks and the micro evidence on nominal price rigidity.
- Money in classical flexible-price models. Money in the utility, cash-in-advance. Monetary frictions. The optimal quantity of money.
- The new keynesian framework: adding monopolistic competition and price stickiness.
- Monetary policy in the new keynesian model: interest rate rules, inflation dynamics, the optimal setting of policy.
- Financial imperfections and the macroeconomy: baseline model.
- Credit market imperfections and the general equilibrium: firm’s side.
- Credit market imperfections: the households’ side.
- Monetary policy and asset prices.
- Monetary policy, banking and the financial crisis of 2008.
J. GALI', Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian Framework, MIT Press, 2009.
Handouts are made available.