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, 2003 Second ed. The MIT Press. Chapter 8.
Articles (changes may occur):
Aoki, K, J. Proudman and G. Vlieghe: House prices, consumption, and monetary policy: a financial accelerator approach, 2002. Bank of England working paper 169. link.
Bean, Charlie: The great Modernation, the great Panic and the great contraction, Schumpeter Lecture 25. august 2009.
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.
Clarida, R., Galí, J. and Gertler, M. : Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory, 2000. Link.
Clarida, R. Gali, J. and Gertler, M.: The Science of New Monetary Policy - a Keynesian Perspective, 1999. The Journal of Economic Literature. Link.
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.
ECB publication: The Monetary Policy of the ECB, 2004. Chapter 3 "The ECB's Monetary Policy Strategy". Link.
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. 44-59.
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.: Financial Intermediation and Macroeconomic Analysis, 2011. Forthcoming in Journal of Economic Perspectives. link.
Material distributed in connection with lectures.
Supplementary reading
Bernanke, Ben S: The crisis and the policy response, Speech Jan. 13.
Brunnermeier, Markus. K.: "Deciphering the Liquidity and Credit Crunch 2007-2008" in Journal of Economic Perspectives (2009) vol 23, number 1, pp 77-100.
Chari, V.V., P. J. Kehoe and E.R. McGrattan: "New Keynesian Models: Not Yet Useful for Policy Analysis" in American Economic Journal Macroeconomics, vol 1, number 1, pp 242-266.
Disyatat, P: The bank lending channel revisited, 2010. BIS Working Papers No 297. link.
Holden, Steinar: "Monetary regimes and the co-ordination of wage setting" in European Economic Review 49, 2005, 833-843.
Lenza, M., Pill, H. og Reichlin, L. : "Monetary Policy in exceptional times" in ECB Working Paper series . No. 1253, October 2010. Link.
Vasco, C. and Woodford, M.: "Credit Spreads and Monetary Policy" in Journal of Money, Credit and Banking , 42(6 Supp.): 3-35 (2010a).. Available on M. Woodfords homepage.
Vasco, C. and Woodford, M.: "The Central-Bank Balance Sheet as an Instrument of Monetary Policy" in NBER Working Paper, no. 16208, July 2010b.. Available on M. Woodfords homepage.
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.
Woodford, M: "Convergence in Macroeconomics: Elements of a New Synthesis" in American Economic Journal Macroeconomics, vol 1, number 1, pp 267-279.