Lecture plan
Book:
Gali, Jordi: Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, 2008. Princeton University Press.
Walsh, C: Monetary Theory and Policy, Second ed. 2003. The MIT Press: Ch. 7.
Articles (changes may occur):
Bernanke, Ben S: The crisis and the policy response, Speech Jan. 13.
Bernanke, Ben S., Mark Gertler and Simon Gilchrist: The Financial Accelerator in a Quantitative Business Cycle Framework, Handbook of Macroeconomics, Vol. 1, 1999 (eds: J.B. Taylor and M. Woodford).
Brunnermeier, Markus. K.: "Deciphering the Liquidity and Credit Crunch 2007-2008" in Journal of Economic Perspectives (2009) vol 23, number 1, pp 77-100.
Christiano, L. J., M. Eichenbaum og C.L. Evans: Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy, Journal of Political Economy, feb 2005, vol. 113, Issue 1, pp. 1-45.
Diamond, Douglas W: "Banks and Liquidity Creation: A Simple Exposition of the Diamond-Dybvig Model" in Economic Quarterly, Vol 93, Number 2. pp 189–200.
Faust, J. and Henderson, D: Is Inflation Targeting Best-Practice Monetary Policy?, 2004. Federal Reserve Bank of St. Louis Review. Vol. 86, No. 4. link.
Gali, J: Modern Perspectives on Fiscal Stabilization Policies, 2005. CESifo Economic Studies, Vol. 51, 4/20. p. 587-599. link.
Gali, J, Mark Gertler and J. David López-Salido: Markups, Gaps, and the Welfare Costs of Economic Fluctuations, The Review of Economics and Statistics February 2007, 89 (1), pp. 44-50.
Holmsen, A, J.F. Qvigstad, ?. R?island and K. Solberg-Johansen: Communicating monetary policy intentions: The case of Norges Bank, Norges Bank Working Paper 2008/20.
Woodford, M: Central Bank Communication and Policy-Effectiveness, August 25-27, 2005. Publication draft of paper presented at FRB Kansas City Symposium on “The Greenspan Era: Lessons for the Future,” Jackson Hole, Wyoming.
Material distributed in connection with lectures.
Supplementary reading
Chari and Kehoe : Modern Macroeconomics in Practice: How Theory Is Shaping Policy, 2006. Journal of Econ Perspectives. link.
Chari, V.V., P. J. Kehoe and E.R. McGrattan: "New Keynesian Models: Not Yet Useful for Policy Analysis" in merican Economic Journal Macroeconomics, vol 1, number 1, pp 242-266.
Mankiw G., N.: The Macroeconomist as Scientist and Engineer, 2006. Journal of Econ Perspectives. link.
Rebelo S.,: Real business cycle models: Past, present and future, 2005. Scandinavian Journal of Economics. link.
Woodford, M: "Convergence in Macroeconomics: Elements of a New Synthesis" in American Economic Journal Macroeconomics, vol 1, number 1, pp 267-279.