Upon successful completion of this course, students will:
- know in depth the debate around fundamental issues of modern monetary theory and policy;
- become able to critically assess public opinions and arguments;
- develop their analytical abilities and to be able for individual or group research.
Course Content (Syllabus)
In this course we discuss the following three themes: A. Monetary policy in the traditional models investigating the impact of money on the real economic activity and inflation. B. Static and dynamic monetary policy theoretical games in closed and open economy (Barro - Gordon model): credibility of monetary policy , independence and transparency of the Central Bank. C.The conduct of monetary policy in the context of the European Monetary Union , the combination of monetary and fiscal policy (policy mix) in the European Monetary Union and the role of the labor market . Emphasis is placed on analytical and systematic presentation of the different economic models as well as the mathematical proof of theories and policy proposals .
Monetary Theory, Monetary Policy, Policy Games, Credibility, Independence, Transparency, European Central Bank
Course Bibliography (Eudoxus)
Carl Walsh , Monetary Theory and Policy, 2003 MIT University Press
Ben Heijdra, Foundations of Modern Macroeconomics, Oxford Universtity Press, 2002