ECON 820 Money in the Macroeconomy, Fall 2015

News: 

Nov 30, 2015: Practice questions posted

Nov 25, 2015: Lecture note 5a posted

Nov 17, 2015: Lecture note 4a and assignment 3 posted

Nov 10, 2015: Lecture note 3b posted

Oct 27, 2015: Practice questions and lecture note 3a posted

Oct 20, 2015: the date of final exam announced - Dec 9, 2015 9:00AM‐12:00PM @ DUN 213

Oct 13, 2015: Solution to assignment 1, Lecture notes 2c and 2d posted. MATLAB code and data to estimate the model to compute welfare cost of inflation also posted 

Oct 6,2015: Assignment 2 posted

Oct 6, 2015: Lecture note 2a and 2b posted.  

Sept 29, 2015: We will go line-by-line the tricks to write smart programs in MATLAB. References and an example code to solve bargaining problem are posted. 

Sept 22, 2015: Assignment 1 posted, lecture notes 1d and 1e posted

Sept 20, 2015: Lecture note 1c posted

Sept 17, 2015: Lecture notes 1a and 1b posted (minor update on Sept 19)

Sept 14, 2015: syllabus posed (update on Sept 19)

Final Exam: Dec 9, 2015, 9:00AM‐12:00PM @ DUN 213

Practice 4

Practice 5

Practice 6

Assignment 3: due in class on Nov 25

Assignment 2: due in class on Oct 14

Assignment 1: due in class on Sept 30

Midterm Exam: Nov 4, 2015 in class

Practice 1

Practice 2

Practice 3

Syllabus

Lecture notes

1.       Foundation of monetary theory 

    1a. Basic model

    1b. Pure credit economy

    1c. Money is memory

    1d. Tractable models of monetary exchange

    1e. (Supplementary) Nash bargaining and proportional bargaining, a MATLAB example to solve bargaining problem

    MATLAB references:  a brief intro to MATLAB, how to write fast codes, good style, Matrix cookbook

2.       Long-run effect of monetary policy

    2a Friedman Rule, a MATLAB code to solve and plot money demand curve 

    2b Hot potato effect

    2c Welfare cost of inflation

    MATLAB example: the U.S. monetary data 1900-2000, a code to compute welfare cost of inflation  

    2d (Supplementary) Monotone comparative statics

    

3.       Short-run non-neutrality

    3a Monetary data and structural vector autoregressions (by Larry Christiano)

    3b Market segmentation and liquidity effects

     3c More on market segmentation and Taylor rule

4.       Monetary policy implementation

    4a Settlement and discount window

    4b Channel system

5.       Banking and crises

    5a Bank runs