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EC924: Monetary Economics

  • Alexander Karalis Isaac

    Module Leader
  • Vasiliki Dimakopoulou

    Module Lecturer
18 CATS - Department of Economics
Spring Module

Principal Aims

EC924-18 Monetary Economics

Principal Learning Outcomes

Have some critical awareness of the limitations and strengths of the models studied, the empirical procedures used alongside these in monetary economics, and the discussion between these two approaches in the literature. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem sets, Examination

Show an understanding of monetary policy trade-offs, the design of monetary policy, and the optimal policy implied by New Keynesian models. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem sets, Examination

Show an understanding of the role of credit frictions in the business cycle and the transmission of monetary policy. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem sets, Examination

Demonstrate a thorough understanding of the role of nominal rigidities in generating a role for monetary policy and matching ‘stylised facts’ of the business cycle.The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem sets, Examination

Demonstrate a thorough understanding of the estimation of the effects of monetary policy using suitably identified Vector Autoregressions. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem sets, Examination

Solve simple dynamic optimisation problems. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem sets, Examination

Demonstrate an awareness of the Real Business Cycle research agenda and simple versions of that model. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem sets, Examination

Demonstrate a thorough understanding of the Basic New Keynesian Model. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem sets, Examination

Use specialist software for the solution and evaluation of New Keynesian and RBC models. The teaching and learning methods that enable students to achieve this learning outcome are: Seminars and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem set

Syllabus

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.

Context

Optional Module
L1P6 - Year 1, L1P7 - Year 1
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

Assessment Method
Coursework (30%) + 2 hour examination (May) (70%)
Coursework Details
Problem Set 1 (15%), Problem Set 2 (15%), 2 hour examination (May) (70%)
Exam Timing
N/A

Exam Rubric

Time Allowed: 2 Hours

Read all instructions carefully- and read through the entire paper at least once before you start entering your answers.

There is ONE Section in this paper. Answer TWO questions (worth 50 marks each).

Approved pocket calculators are allowed.

You should not submit answers to more than the required number of questions. If you do, we will mark the questions in the order that they appear, up to the required number of questions in each section.

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.

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