Monetary Economics

Module outline 

Part 1. Stylised facts of monetary economics 

• Stylised monetary facts | Ellison - Scott data 
• Empirical monetary economics | Ehrmann - Ellison data 
• The changing response of US industry to monetary policy, Ehrmann and Ellison

Part 2. Money in dynamic general equilibrium models 

• Lucas islands model
• Cash in advance model

Part 3. Real-nominal interactions in the short run

• Sticky wages and prices
• The persistence puzzle
• IS-LM is back
• The liquidity effect

Part 4. Monetary policy

• Monetary policy rules
• Monetary policy under uncertainty
• Learning

Sample exam questions

January 2002 exam

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