Embedded Files
Part II
Part II
US Business Cycle
US Monetary policy
Lectures on optimal monetary policy
Class 1. Welfare
Class 2. Linear Quadratic Approach
Class 3. Ramsey Approach
References. Class 1: G (2015: Chapter 3) or ADH (2016: Chapter 5 [less formal]). Class 2: CCG (1999) or G (2015: Chapter 4) or ADH (2016: Chapter 7 [less formal]). Class 3: SGU (2004) and DTA (2015) or ADH (2016: Chapter 7 [less formal]).
Reference list
Reference list
Manin references
G (2015): Jordi Galì (2015), Monetary Policy, Inflation, and the Business Cycle, Princeton University Press.
ADH (2016): Nicola Acocella, Giovanni Di Bartolomeo, Andrew Hughes Hallett (2016), Macroeconomic Paradigms and Economic Policy, Cambridge University Press.
CGG (1999): Richard Clarida, Jordi Gali, Mark Gertler (1999), The Science of Monetary Policy: A New Keynesian Perspective, JEL. A handout with details on computations.
SGU (2004): Stephanie Schmitt-Grohé and Martín Uribe (2004), Optimal Fiscal and Monetary Policy under Sticky Prices, Journal of Economic Theory.
DPA (2015): Giovanni Di Bartolomeo, Patrizio Tirelli, and Nicola Acocella (2015), The Comeback of Inflation as an Optimal Public Finance Tool, International Journal of Central Banking.
Additional references
The LQ approximation, to learn the hard way: Pierpaolo Benigno and Michael Woodford (2012), Linear-Quadratic Approximation of Optimal Policy Problems, Journal of Economic Theory.
Again the hard way but on Ramsey: Lawrence J. Christiano, Roberto Motto, and Massimo Rostagno (2007), Notes on Ramsey-Optimal Monetary Policy, mimeo.
Ramsey monetary/fiscal policy mix and the US business cycle: Nicola Acocella, Giovanni Di Bartolomeo, and Patrizio Tirelli (2014), U.S. Trend Inflation Reinterpreted: The Role of Fiscal Policies and Time-varying Nominal Rigidities, Macroeconomic Dynamics.
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