Master
2024/2025
Advanced Monetary Economics
Type:
Elective course (Economics and Economic Policy)
Area of studies:
Economics
Delivered by:
Department of Theoretical Economics
Where:
Faculty of Economic Sciences
When:
2 year, 2 module
Mode of studies:
offline
Open to:
students of all HSE University campuses
Instructors:
Olga Kuznetsova
Master’s programme:
Economics and Economic policy
Language:
English
ECTS credits:
3
Course Syllabus
Abstract
The course is devoted to the main issues in modern monetary economics. First, the course introduces the concept of money and describes the functioning of money market. The factors behind money demand and supply are studied through the set of comprehensive monetary models with a special interest in New Keynesian models. Then, the course proceeds to the links between money and the main economic variables such as output, inflation and unemployment both in closed and open economies. This allows addressing the core issue in monetary economics, which is the role of monetary policy. After the study of transmission monetary channels, we address the most pertinent problem, which is the optimal monetary policy design under uncertainty. Different concepts of uncertainty are analyzed with the special focus on the role of information policy of central banks. All topics discussed during the course will be illustrated with relevant practical examples.
Learning Objectives
- to present the major macroeconomic problems
- to describe the role of central banks in the economy
- to introduce the students to the standard analytical methodology that figures out the optimal monetary policy measures
Expected Learning Outcomes
- be able to acquire the necessary skills to discuss different macroeconomic problems, the fiscal and monetary authorities’ actions and decisions, the consequences of macroeconomic policy changes for the economy
- be able to analyze financial and real data, apply the macroeconomic tools for the analysis of both monetary and financial sphere
- be able to understand the role of monetary policy for output, inflation and exchange rate determination, the difference between monetary policy regimes, the causes and features of financial crises in the modern economy, the opportunities and feasibilities of stabilization policy
Course Contents
- Topic 1. Introduction. The concept of money. Modelling money demand: MIU and CIA
- Topic 2. Monetary policy in a New Keynesian model
- Topic 3. Policy tradeoffs: inflation bias and stabilization bias
- Topic 4. Monetary policy with policy lags
- Topic 5. Monetary policy under adaptive learning
- Topic 6. Optimal monetary policy at a zero lower bound
- Topic 7. Monetary policy in a small open economy. International monetary policy games
Bibliography
Recommended Core Bibliography
- Monetary policy, inflation, and the business cycle : an introduction tj the New Keynesian framework and its applications, Gali, J., 2015
- Monetary theory and policy, Walsh, C. E., 2003
Recommended Additional Bibliography
- Handbook of monetary economics. Vol.1: ., , 2000
- Handbook of monetary economics. Vol.2: ., , 2000