General information

• Study points: 5.00
• Language: English
• Category: lecture - interactive lecture
• Duration: 26.0 hours 
• Periodicity: Taught in the first semester
• POC: POC Engelstalige Masters FEB

Taught by

N.
Peersman Gert (substitute)

Aims

The purpose of this course is to give the students a brief overview of recent topics in monetary economics and monetary policy. After following the course, the students should be able to understand the most important theories in monetary economics, interpret empirical evidence and understand the conduct of monetary policy by the world’s major central banks.
 
Note: This year the course is taught by  Gert Peersman

Content

• Stylised facts: The course starts with an overview of the stylised facts of monetary economics. An overview is given of empirical methods to measure the impact of monetary policy, with special attention to Structural Vector Autoregressions (SVARs).
• Monetary Transmission Mechanism: All channels of monetary transmission are discussed, including the most recent theories and empirical evidence.
• Goals and targets of monetary policy: Most important goals of central banks are described and the potential conflicts among them.
• Rules versus discretion and institutional framework of central banks: The debate of rules versus discretion is presented, and possible reforms of the institutional framework to avoid the ‘inflation bias’ (central bank independence, transparency, accountability, ).
• Strategies for a stable monetary policy: Several monetary policy strategies are discussed conducted by the major central banks in the world (inflation targeting, monetary targeting, Taylor rules, …). Special attention is paid to the historical record of these central bank (e.g. the great inflation in the US).
• Monetary policy of the ECB: An overview is given of the monetary policy strategy of the ECB, its performance and a critical evaluation.
• New Neoclassical Synthesis / New Keynesian economics: Some recent issues in advanced monetary economics are discussed and its consequences, e.g. the New Phillipscurve.

Course Material

Text book + reading list
 
Slides, transparencies, courseware
 
You can get the handouts of the course through Toledo.

Evaluation description

Examination type:
    written
When?: final examination during examination period
Evaluation type:
    Closed book