The main objective of this module is to provide an understanding of the key aspects of monetary dynamic stochastic general equilibrium (DSGE) models, with a focus on recent contributions to the literature and their applications.
Principal Learning Outcomes
Students should gain a knowledge of, and an ability to construct, manipulate and numerically solve, theoretical models in which there is a role for monetary policy or where fluctuations of nominal variables affect the real allocation of resources.
The module will typically cover the following topics and techniques: Empirical Evidence; Classical monetary model; NK model; macrofinance models; Current issues: introduction of financial frictions and unconventional monetary policy measures; Structural VARs; Solving rational expectation models; Introduction to Dynare/Matlab.
- Pre or Co-requisites
- Pre-requisites: Undergraduate macroeconomics and econometrics at intermediate level. Co-requisites: the course will build on material in core macro and econometrics lectures.
- Assessment Method
- Coursework (20%) + 2 hour exam (80%)
- Coursework Details
- Problem set
- Exam Timing
Time Allowed: 2 Hours
Answer TWO questions ONLY. All questions are of equal weight (50 marks each). Answer each question in a separate answer booklet.
Approved pocket calculators are allowed.
Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book. If you answer more questions than are required and do not indicate which answers should be ignored, we will mark the requisite number of answers in the order in which they appear in the answer book(s): answers beyond that number will not be considered.
Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.