Monetary Policy: Theory and Practice

This course for bachelor students studies money and monetary policy from first principles. It begins by asking what
money is and why monetary exchange can improve on barter, credit, or record keeping. It then
examines how economists model money, how private and central-bank liabilities become liquid, and
how banks, payment systems, and central banks create and manage monetary claims. The final
part develops the New Keynesian model of monetary policy and studies policy rules, credibility,
monetary–fiscal interactions, and the empirical identification of monetary-policy effects.
The course combines monetary theory, economic history, institutional detail, and modern macroeconomics.
Formal models will be connected throughout to historical episodes and to the operating frameworks of the Eurosystem, the Federal Reserve, and other central banks.

 

Assessment will include a final exam. In addition, there may be a mid-semester exam, which will be determined later. Part of
the course grade will be determined by a student presentation of a course-relevant research paper.

→ Syllabus