Ph D Course in Monetary Economics 7,5hp
Organized by Uppsala University and Sveriges Riksbank
April-May 2011
Lectures will be given at the Riksbank

Updated schedule - 2011-05-03

The purpose of the course is to introduce students to modern New Keynesian models for monetary policy and business cycle analysis. These models are dynamic stochastic general equilibrium models based on optimizing behaviour and rational expectations. At the same time, they incorporate price and wage rigidity, permitting an important role for aggregate demand shocks and monetary policy to affect activity. They have become a standard tool for central banks and they are used as a framework for much modern research in macroeconomics. The course will cover the basic New Keynesian model, optimal policy, labour market frictions, open economy, and also introduce methods for solution and simulation. Throughout, we will emphasise the microeconomic foundations of these models. We hope that, after finishing this course, participants will feel comfortable working with these models.

More Information
Reading List for Ph D Course in Monetary Economics 2011
Lecture Notes by Jordi Gali

The New Keynesian model
Monetary policy in the basic New Keynesian model
Inflation Persistence and Sticky Information
Solving rational expectations models
Consumption and investment dynamics
Optimal Monetary Policy - Introduction
Optimal Monetary Policy - Additive Uncertainty
Optimal Monetary Policy - Model Uncertainty
Wage rigidity and labour market frictions
Practical monetray policy
Do Sticky Prices Make Sense?
A Small Open Economy Model with Perfect Insurance

Exercise 1
Exercise 2
Exercise 3
Exercise 4

The Riksbank is located in downtown Stockholm about five minutes walking distance from the main train station, at Brunkebergstorg 11, close to Sergelstorg.