Macroeconomics III, 2008 (Giancarlo Corsetti and Morten O. Ravn)



1. Outline (i) General and Lectures 1-6


2. Schedule and Readings

Tuesday 08/01/08 & Thursday 10/01/08 (Ravn): Topic 1 - Basic Concepts and Basic Monetary Models
Carl Walsh, 2003, "Monetary Theory and Policy", 2nd Edition, Chapters 2-3.
Ljungqvist and Sargent, Chapter 24, pp. 857-869.
Maurice Obstfeld and Kenneth Rogoff, 1996, "Foundations of International Macroeconomics", Section 8.3.
Thomas F. Cooley and Gary D. Hansen, 1989, "Inflation Tax in a Real Business cycle Model", American Economic Review 79, pp.733-48.

Tuesday 15/01/08 & Thursday 17/01/08 (Ravn): Topic 2 - Empirics and New Keynesian Models
Bernanke, Ben S., and Ilian Mihov (1997): “Measuring Monetary Policy,” Quarterly Journal of Economics, vol. CXIII, no. 3, 869-902.
Christiano, Lawrence J., Martin Eichenbaum, and Charles L. Evans (1996): “The Effects of Monetary Policy Shocks: Evidence from the Flow of Funds”, Review of Economics and Statistics, 16-34.
Galí, Jordi (2003): “New Perspectives on Monetary Policy, Inflation, and the Business Cycle,” in Advances in Economics and Econometrics, volume III, edited by M. Dewatripont, L. Hansen, and S. Turnovsky, Cambridge University Press (also as NBER WP #8767).
Kydland, Finn E. and Edward C. Prescott, 1990, "Business Cycles: Real Facts and a Monetary Myth", Quarterly Review, Federal Reserve Bank of Minneapolis.
McCandless, George T., Warren Weber (1995): “Some Monetary Facts,” Federal Reserve Bank of Minneapolis, Quartely Review.
Walsh, Carl E. (2003): Monetary Theory and Policy, Second Edition, MIT Press, Cahpter 1, Chapter 5, Sections 5.3-5.5
Yun, Tack (1996): “Nominal Price Rigidity, Money Supply Endogeneity, and Business Cycles,” Journal of Monetary Economics 37, 345-370.


Tuesday 22/01/08 & Thursday 24/01/08 (Ravn): Topics 2 and 3
Christiano, Lawrence J., Martin Eichenbaum, and Charles L. Evans (2005): “Nominal Rigidities and the Dynamic Effects of a Shock toMonetary Policy,” Journal of Political Economy.
Gertler, Mark, and Jordi Gali, "Inflation Dynamics: A Structural Econometric Approach", Journal of Monetary Economics, 1999
King, Robert G., and Alexander L. Wolman (1996): “Inflation Targeting in a St. Louis Model of the 21st Century,” Federal Reserve Bank of St. Louis Review, vol. 78, no. 3. (NBER WP #5507).
Bils, Mark, and Peter Klenow (2004), “Some Evidence on the Importance of Sticky Prices”, Journal of Political Economy, 947-85.
Blinder, Alan (1991): “Why Are Prices Sticky? Preliminary Results from an Interview Study”, American Economic Review (P&P), 89-96.
Dhyne, E. et al (2006), “Price Setting in the Euro Area and the United States: Some Facts From Individual Consumer Price Data”, Journal of Economic Perspectives, 171-92.

3. Lecture Notes

Morten O. Ravn part:

(i) Lecture Note 1
(ii) Lecture Note 2 and Quantitative Effects of Money Growth Rate Shocks in a MIU Model
(iii) Lecture Note 3
(iv) Lecture Note 4
(v) Lecture Note 5
(vi) Lecture Note 6



4. Assignments
(i) Exercise 1
(ii) Exercise 2
(iii) Exercise 3 THIS COUNTS FOR THE GRADE!!!


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