Following the onset of the financial crisis, liquidity shortages caused great concern. Meanwhile, excess liquidity has become a challenge. In this lecture, we will be asking what function liquidity fulfills in a modern economy. We will be looking at the kind of frictions that make money essential and consider the role of credit and financial intermediation in the economy. On this basis, we will discuss various micro- and macroeconomic aspects of monetary theory and monetary policy.
Lecturer | Oliver Sigrist [contact] |
Assistant | Romina Ruprecht [contact] |
Lecture | Wednesday, 14:15 - 18:00 |
Room | WWZ, S15 |
Start date | February 22, 2017 |
Date | Room | Topic |
22.02. | S15 | 14:15-18:00: Introduction, The Basic Environment & Pure Credit Economies (Part I) |
01.03. | S15 | 14:15-18:00: Pure Credit Economies (Part II) |
08.03. | S15 | Fasnachtsferien |
15.03. | S15 | 14:15-18:00: Money in Equilibrium (Part I) |
22.03. |
| No Lecture |
29.03. | S15 | 14:15-16:00: Money in Equilibrium (Part II) 16:15-18:00: Exercises Set 1 (Credit Economies) / Solutions |
05.04. | S15 | 14:15-18:00: Money in Equilibrium Part (III) & Monetary Policy, the Friedman rule, and the cost of inflation (Part I) |
12.04. | S15 | 14:15-16:00: Monetary Policy, the Friedman rule, and the cost of inflation (Part II) |
19.04. | S15 | 14:15-16:00: Questions and Discussion regarding the lecture 16:15-18:00: Exercise Set 3 (Search Externalities) / Solutions |
26.04. | S15 | 14:15-16:00: Exercise Set 4 (Hot Potato Effect) / Solutions 16:15-18:00: Questions and Discussion regarding the tutorials |
03.05. | S15 | 14:45 - 15:45 Written Exam (60 Minutes) |
23.05. | tba | no seminar |
24.05. | S15 | 14:30-18:00 Presentations of individual papers (participation is mandatory) |
22.05. | tba | no seminar |
The course consists of two parts: a lecture and the study of individual papers. The lecture is based on the book "Money, Payments, and Liquidity" by Ed Nosal from the Federal Reserve Bank of Chicago and Guillaume Rocheteau from the University of California-Irvine, MIT-Press.
Stephen Williamson and Randall Wright discuss the foundations of New Monetarist Economics in two articles worth reading:
The Lagos-Wright Model:
The BCW Model:
Supplementary slides:
Individual papers: to be announced
Randall Wright: http://www.ssc.upenn.edu/~rwright/
NBER homepage: http://www.nber.org/
JSTOR homepage: http://www.jstor.org/cgi-bin/jstor/listjournal
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