Monetary Economics

Course Code :2108TEWECP
Study domain:Economic Policy
Academic year:2019-2020
Semester:2nd semester
Contact hours:45
Credits:6
Study load (hours):168
Contract restrictions: Exam contract not possible
Language of instruction:English
Exam period:exam in the 2nd semester
Lecturer(s)Roland Winkler

3. Course contents *

This course covers the most important topics in monetary economics. The main emphasis is on the relationship among monetary policy, inflation and the business cycle. The course introduces students to the baseline modern framework – the New Keynesian model – for understanding the links between monetary policy and the aggregate performance of an economy. Recent developments, such as the use of unconventional monetary policies at the zero lower bound on nominal interest rates, are also discussed.

Topics include:

  • Empirical evidence on money, prices and output
  • The basic New Keynesian model
  • Monetary policy design in the basic New Keynesian model
  • Monetary policy trade-offs: discretion versus commitment
  • The zero lower bound on nominal interest rates
  • Unconventional monetary policy