Monetary Policy

Instructors

AOKI Kosuke

Term / Language / Credits

S1 / English / 2

Objectives

To learn various topics on monetary policy. Topics covered include: identification of the monetary transmission mechanism, the New-Keynesian models, optimal monetary policy, central-bank independence, financial markets and monetary policy.

The course will not be based on a single textbook, but the following textbooks are useful: "Monetary Policy, Inflation, and the Business Cycle" by Gali, "Monetary Theory and Policy" by Walsh. Additional readings will be made available to students through the course homepage.

Keywords

central banking, monetary policy, nominal interest rate, money, inflation, price level, money-in-utility function model, opportunity cost of holding money, intertemporal optimization, budget constraint, welfare cost of inflation, monetary transmission mechanism, interest rate channel, credit channel, balance sheet channel, credit frictions, bank balance sheet, bank capital, external finance premium, phillips curve, natural output, natural interest rate, optimal monetary policy, inflation output gap tradeoff, financial crisis

Schedule

Teaching Methods

Lecture

Grading

Examination

Reference Books

"Monetary Policy, Inflation, and the Business Cycle" by Gali, "Monetary Theory and Policy" by Walsh.

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