ECON4325 - Spring 2010 (Monetary Policy and Business Fluctuations)

Tentative lecture plan ? Changes may occur

Lectures: Thursdays, 10.15 ? 12.00, Aud 3, Eilerts Sundts hus

Exam 31st May, 14.30

 

21/1?????????? Introduction and empirical evidence (Sveen)

????????????????? Readings: Gal?, ch. 1, Christiano, Eichenbaum and Evans (2005)

 

28/1?????????? A simple RBC model, log-linearization (Sveen)

????????????????? Readings:? Gal?, ch. 2

 

4/2???????????? The basic new Keynesian model (Sveen)

????????????????? Readings: Gal?, ch. 3

 

11/2?????????? The basic new Keynesian model (Sveen)

 

18/2?????????? Interest rate rules (Sveen)

Readings: Gal?, ch. 4

 

25/2?????????? No lecture

 

4/3???????????? The credit channel of monetary policy (Alstadheim)

Readings: Walsh, ch. 7, Bernanke, Gertler, and Gilchrist (1999).

 

11/3?????????? Monetary policy and financial crises (Alstadheim)

Readings: Borio and Disyatat (2009)

 

18/3?????????? Time-inconsistency (R?island)

Readings: Lecture notes

 

25/3?????????? Optimal policy in the New Keynesian model (R?island)

Readings: Gal?, ch. 5.

 

1/4???????????? No lecture

 

8/4???????????? Monetary policy in Norway (R?island)

Readings:? Holmsen, Qvistad, R?island and Solberg-Johansen (2008),

?????????????????? Faust and Henderson (2004), Woodford (2005)

 

15/4?????????? Sticky wages in the new Keynesian model (Holden)

Readings: Gali, ch. 6.

 

22/4?????????? Welfare costs of business fluctuations ?(Holden)

Readings: Gali, Gertler, L?pez-Salido; Gali

 

29/4?????????? New Keynesian models; Interaction of wage setting and monetary policy. The financial crisis (Holden)

Readings: Woodford (2009); Holden; Diamond; Bean, Brunnermeier

 

Tommy.Sveen@Norges-Bank.no, Ragna.Alstadheim@norges-bank.no, Oistein.Roisland@norges-bank.no, Steinar.Holden@econ.uio.no