Short Course in Macroeconomic Policy Games
DIW Berlin, May 2018
Martin Bodenstein
Federal Reserve Board
E-mail: Martin.Bodenstein@gmail.com
Web page: https://sites.google.com/site/martinbodenstein/
Course Description
This is a short topics course in Macroeconomics. I will discuss setting up and solving games under cooperation and open-loop Nash strategies in dynamics stochastic general equilibrium (DSGE) models and I introduce a Matlab-based toolbox that facilitates the computation of equilibria in medium to large-scale models using perturbation techniques. In illustrating the toolbox, I focus on the open economy aspects of monetary policy.
Course material
The current version of the lecture notes is posted here. (Last update: May 24, 2018!)
Link to underlying paper and toolbox.
Links to additional references:
Benigno, G. and P. Benigno (2006). Designing targeting rules for international monetary policy cooperation. Journal of Monetary Economics 53(3), 473–506.
Benigno, P. and M. Woodford (2012). Linear-quadratic approximation of optimal policy problems. Journal of Economic Theory 147(1), 1–42.
Corsetti, G., L. Dedola, and S. Leduc (2010). Optimal Monetary Policy in Open Economies. In B. M. Friedman and M. Woodford (Eds.), Handbook of Monetary Economics, Volume 3 of Handbook of Monetary Economics, Chapter 16, pp. 861–933. Elsevier.