AØKA08068U Monetary Economics: Macro Aspects
The course is part of the Financial line symbolized by "F".
The aim of the course is to offer an understanding of several
aspects of money and the macro economy, thereby providing insights
into how and why monetary phenomena and policy affect important
macroeconomic aggregates such as output, consumption, inflation and
unemployment. Moreover, focus will be on the characteristics of
“good” monetary policymaking in the sense of assessing the
advantages and disadvantages of various monetary policy strategies.
To secure a firm foundation for the aspects covered, emphasis will
be on rigorously formulated theoretical models. Economic intuition,
however, is just as important as mathematical formalism. Although
the curriculum will be mainly theoretical, the empirical relevance
of the material will not be underplayed.
Particular aspects to be covered include:
- money’s role in flexible-price general equilibrium models
- money’s role with incomplete nominal adjustment
- credibility problems in monetary policy
- the importance of institutional frameworks for monetary policy
- international monetary policy coordination
- inflation targeting
For a detailed look into the general workings of the course, please consult last year’s public course home page at http://www.econ.ku.dk/personal/henrikj/monec2014/.
In this course, students are trained to use formal macroeconomic
theory to assess real-life monetary policy issues as well as being
able to understand modern research papers in the area. The course
is based on a combination of lectures and classes where the
lecturer and students together solve various problems.
In order to follow this course, students must be familiar with
advanced macroeconomic theory. Hence, basic intertemporal
optimization techniques (as used in, for example, Ramsey growth
models), and analyses of static and dynamic systems with rational
expectations should be known. Students should therefore not be
afraid of mathematical rigor.
Notably, students are expected to be able to move beyond the mere
mechanics of the theories and be capable of presenting formal
results in economic and intuitive terms. This provides the students
with valuable skills for later employment in both public and
private institutions with financial and macroeconomic focus.
The evaluation is based on a three-hour closed-book written exam,
where students will be tested in their skills in mathematical
derivation of central results in the macroeconomics of monetary
theory as well as in their capabilities of explaining results in
plain words. Hence, in order to pass the course with the highest
grade, the students must demonstrate both knowledge about the
mathematical details of various models covered in the course, as
well as showing a solid understanding of the economic mechanisms
that are behind the mathematical results.
Syllabus:
The curriculum will consist of a large part of Carl. E. Walsh
(2010): Monetary Theory and Policy. Third Edition, The MIT Press,
and a number of articles
Most importantly, one should not be afraid of mathematical rigor. At the end of the day it merely serves to create conclusions and policy implications that are internally consistent. Not a bad starting point for organizing your thoughts. And remember that it's the economics which is the important stuff; the math is just a helpful tool!
The lectures will be divided in 2/3 lectures and 1/3 classes where students and teacher solve problems together.
Time and room:
Time and room for the lectures and exercise classes: Please press the link under "Se skema" (See schedule). 15F means Spring (Forår) 2015.
The springsemester is available partly in English at this link:
https://skema.ku.dk/KU1415/reporting/textspreadsheet?objectclass=module&idtype=id&identifier=43795&t=SWSCUST+module+textspreadsheet&days=1-5&weeks=27-52&periods=1-68&template=SWSCUST+module+textspreadsheet
The first lecture in the springsemester will be the 2.th of February 2015 at 13.00 o´clock (1.00 PM).
- Category
- Hours
- Exam
- 3
- Lectures
- 42
- Preparation
- 161
- Total
- 206
- Credit
- 7,5 ECTS
- Type of assessment
- Written examination, 3 hours under invigilationA 3 hours written assignment without aids.
- Aid
- Without aids
- Marking scale
- 7-point grading scale
- Censorship form
- External censorship
100 % censorship
- Exam period
- For the Spring semester 2015: From 26 May to 28 June 2015 Written exam will be the 12 of June 2015 The written exam takes place at Peter Bangsvej 36, 2000 Frederiksberg http://pc-eksamen.ku.dk/pc_exam More information is available at https://intranet.ku.dk/economics_ma/examination/Pages/default.aspx
- Re-exam
- Same as ordinary. But if only a few students have registered for the re-exam, the exam might change to an oral exam with a synopsis to be handed in. This means that the examination date also will change.
Criteria for exam assesment
The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.
Course information
- Language
- English
- Course code
- AØKA08068U
- Credit
- 7,5 ECTS
- Level
- Full Degree Master
- Duration
- 1 semester
- Placement
- Spring
- Schedule
- Spring (week 6-21)
- Course capacity
- No limits
- Continuing and further education
- Price
320 DKK per ECTS.
- Study board
- Department of Economics, Study Council
Contracting department
- Department of Economics
Course responsibles
- Henrik Jensen (13-6a6770746b6d306c67707567704267657170306d7730666d)