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Advanced Monetary Economics (ECO-AD-MONECO)

ECO-AD-MONECO


Department ECO
Course category ECO Advanced courses
Course type Course
Academic year 2023-2024
Term BLOCK 1
Credits 1 (EUI Economics Department)
Professors
Contact Simonsen, Sarah
Sessions

12/09/2023 15:30-17:30 @ Seminar Room B, Villa la Fonte

14/09/2023 9:00-11:00 @ Seminar Room B, Villa la Fonte

26/09/2023 15:30-17:30 @ Seminar Room B, Villa la Fonte

28/09/2023 9:00-11:00 @ Seminar Room B, Villa la Fonte

03/10/2023 15:30-17:30 @ Seminar Room B, Villa la Fonte

05/10/2023 13:30-15:30 @ Seminar Room B, Villa la Fonte

17/10/2023 15:30-17:30 @ Seminar Room B, Villa la Fonte

19/10/2023 9:00-11:00 @ Seminar Room B, Villa la Fonte

24/10/2023 15:30-17:30 @ Seminar Room B, Villa la Fonte

26/10/2023 9:00-11:00 @ Seminar Room B, Villa la Fonte

Purpose

This course will cover recent developments in monetary economics and examine how they help macroeconomists think about important policy challenges, e.g. inequalities, unemployment, liquidity traps, cost-pushed inflation, and interactions between monetary and fiscal policy.

Description

Topics


Monetary policy and unemployment
• Olivier Blanchard and Jordi Galí. Labor markets and monetary policy: A new keynesian model with
unemployment. American Economic Journal: Macroeconomics, 2(2):1–30, 2010
• Lawrence J Christiano, Martin S Eichenbaum, and Mathias Trabandt. Why is unemployment so
countercyclical? Review of Economic Dynamics, 41:4–37, 2021
• Lawrence J Christiano, Martin S Eichenbaum, and Mathias Trabandt. Unemployment and business
cycles. Econometrica, 84(4):1523–1569, 2016
• Jordi Galí. Monetary policy and unemployment. In Handbook of Monetary Economics, volume 3,
pages 487–546. Elsevier, 2010
• Mark Gertler, Luca Sala, and Antonella Trigari. An estimated monetary dsge model with unemployment
and staggered nominal wage bargaining. Journal of Money, Credit and Banking, 40(8):1713–1764,
2008

Phillips curves and inflationary pressures
• Guido Lorenzoni and IvánWerning. Inflation is conflict. Technical report, National Bureau of Economic
Research, 2023
• Pierpaolo Benigno and Gauti B Eggertsson. It’s baaack: The surge in inflation in the 2020s and the
return of the non-linear phillips curve. Technical report, National Bureau of Economic Research, 2023
• Jonathon Hazell, Juan Herreno, Emi Nakamura, and Jón Steinsson. The slope of the phillips curve:
evidence from us states. The Quarterly Journal of Economics, 137(3):1299–1344, 2022
• Ben Bernanke and Olivier Blanchard. What caused the us pandemic-era inflation? Hutchins Center
Working Papers, 2023
Monetary-Fiscal Interactions
• Marco Bassetto and Wei Cui. The fiscal theory of the price level in a world of low interest rates.
Journal of Economic Dynamics and Control, 89:5–22, 2018
• Eric M. Leeper. Equilibria under ’active’ and ’passive’ monetary and fiscal policies. Journal of
Monetary Economics, 27(1):129–147, February 1991
• Eric M Leeper and Campbell Leith. Understanding inflation as a joint monetary–fiscal phenomenon.
In Handbook of Macroeconomics, volume 2, pages 2305–2415. Elsevier, 2016
• Thomas J Sargent, Neil Wallace, et al. Some unpleasant monetarist arithmetic. Federal Reserve Bank
of Minneapolis Quarterly Review, 5(3):1–17, 1981
• Laura Castillo-Martinez and Ricardo Reis. How do central banks control inflation? A guide for the
perplexed. Unpublished manuscript, 2019
• Marco Bassetto and Thomas J. Sargent. Shotgun wedding: Fiscal and monetary policy. Annual Review
of Economics, 12(1):null, 2020
The Liquidity Trap and Unconventional Policies
• Gauti B. Eggertsson and Michael Woodford. Zero bound on interest rates and optimal monetary policy.
Brookings Papers on Economic Activity, 2003(1):139–233, 2003
• Gauti B. Eggertsson. What fiscal policy is effective at zero interest rates? In NBER Macroeconomics
Annual 2010, Volume 25, NBER Chapters, pages 59–112. July 2011
• Gauti B Eggertsson and Sergei K Egiev. Fundamental driven liquidity traps: A unified theory of the
great depression and the great recession. Technical report, Working paper, 2020
• Marco Del Negro, Marc Giannoni, and Christina Patterson. The forward guidance puzzle. Staff Reports
574, Federal Reserve Bank of New York, 2015
• John Cochrane. The New Keynesian liquidity trap. Journal of Monetary Economics, 92:47 – 63, 2017

HANK Models
• Adrien Auclert. Monetary policy and the redistribution channel. American Economic Review,
109(6):2333 – 2367, 2019
• Greg Kaplan, Benjamin Moll, and Giovanni L. Violante. Monetary policy according to HANK.
American Economic Review, 108(3):697–743, March 2018
• Ivan Werning. Incomplete markets and aggregate demand. Working Paper 21448, National Bureau of
Economic Research, August 2015
• Morten O Ravn and Vincent Sterk. Macroeconomic fluctuations with HANK & SAM: An analytical
approach. Journal of the European Economic Association, 19(2):1162–1202, 2021
• Adrien Auclert, Matt Rognlie, and Ludwig Straub. The intertemporal keynesian cross. Working Paper
25020, 2018
• Sushant Acharya and Keshav Dogra. Understanding HANK: Insights from a PRANK. Econometrica,
88(3):1113–1158, 2020
Policy Analysis in HANK
• Wei Cui and Vincent Sterk. Quantitative easing. Working papers, UCL, 2019
• Marcus Hagedorn, Iourii Manovski, and Kurt Mitman. The fiscal multiplier. Working paper, 2019
• Marcus Hagedorn, Jinfeng Luo, Iourii Manovski, and Kurt Mitman. Forward guidance. Journal of
Monetary Economics, 102:1–23, 2019
• Alisdair McKay, Emi Nakamura, and Jon Steinsson. The power of forward guidance revisited. American
Economic Review, 106(10):3133, October 2016
• Edouard Challe. Uninsured unemployment risk and optimal monetary policy in a zero-liquidity
economy. American Economic Journal: Macroeconomics, 12(2):241–283, April 2020
• Alisdair McKay and Ricardo Reis. The role of automatic stabilizers in the U.S. business cycle.
Econometrica, 84:141–194, January 2016
• Anmol Bhandari, David Evans, Mikhail Golosov, and Thomas J Sargent. Inequality, business cycles
and monetary-fiscal- policy. Working Paper 24710, National Bureau of Economic Research, June 2018
• Sushant Acharya, Edouard Challe, and Keshav Dogra. Optimal monetary policy according to HANK.
Staff Report 916, Federal Reserve Bank of New York, February 2020

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Page last updated on 05 September 2023

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