Type of Credit: Elective
Credit(s)
Number of Students
An introduction of theories on banking system and monetary policy.
能力項目說明
In this course, we will learn how to model behavior of the banking firm. By incorporating bank behavior in a dynamic general equilibrium model of monetary economies, we assess the effect of monetary policy and the role of banking firm in the monetary transmission mechanism.
Dynamic Stochastic General Equilibrium (DSGE) models have been a prevalent framework for monetary policy analyses in recent years. In this course, we will learn how to establish a DSGE model and use the model for monetary policy evaluations. This course will cover the framework of fundamental DSGE models, and welfare evaluation of alternative monetary policies.
| 教學週次Course Week | 彈性補充教學週次Flexible Supplemental Instruction Week | 彈性補充教學類別Flexible Supplemental Instruction Type |
|---|---|---|
Weeks 1,2
- Introduction of money in a general equilibrium monetary model
Weeks 3,4,5
- Introduction of optimal monetary policy
Week 6, 7, 8
- Introduction of DSGE models – flexible price and nominal rigidity
Week 9
- Proposals for study
Weeks 11, 12
- Introduction of the credit channel for monetary policy
Weeks 13, 14, 15
- Introduction of theory on the banking firm, banking behavior and credit rationing
Weeks 16, 17
- macroprudential policy and monetary policy
Week 18
- oral presentation
Expected workload per week:
1 topic listed above
3 In-class Hours
4.5 Outside-of-class Hours
- midterm exam , 30%
- term paper, 60%
- class participation, 10%
Galí Jordi, Monetary Policy, Inflation, and the Business Cycle, 1st ed., Princeton, 2008.
Walsh Carl, Monetary Theory and Policy, the MIT Press, 3rd ed., 2010.
Matthews Kent and John Thompson, The Economics of Banking, Wiley, 3rd ed., 2014.
Freixas Xavier and Jean-Charles Rochet, Microeconomics of Banking, the MIT Press, 2nd ed., 2008.
Papers