Course description
The course aims at providing students with knowledge and understanding of recent research in the fields of monetary policy and business fluctuations: The course is focused on the following: Business cycles - theory and evidence. Why and how does the activity level of the economy vary over time, and what can the policymakers do to stabilise the economy? The course discusses these questions in light of real business cycle theory and New-keynesian theory. Inflation and monetary policy. The course will in particular discuss (i) The international monetary system (ii) Monetary policy in the history of economics and (iii) Inflation targeting (macroeconomics of inflation targeting, financial stability and policy rules).
Reading list
Arnold, L. G., 2002, Business Cycle Theory, Oxford University Press
Favero, C. A., 2001, Applied Macroeconometrics, Oxford University Press. Chp 2.1-2.2, 2,6, 6.1-6.6. K
Walsh, C. E., 1998, Monetary Theory and Policy, MIT Press. Chp 1, 4, 5, 6, 7, 8, 9, 10, 11.
Bernanke, B.S., and F.S. Mishkin (1997), "Inflation Targeting: A New Framework for Monetary Policy?" Journal of Economic Perspectives 11, p 97-116. (Download the article from www.jstor.org)
Clarida, R., Gali, J. og M. Gertler, 1999, "The Science of Monetary Policy: A New Keynesian Perspective", Journal of Economic Literature, 37(4): p 1661-1707. (Download the article from www.jstor.org)
Kydland, F. E. og E. C. Prescott (1990): "Business cycles: Real facts and a monetary myth", Federal Reserve Bank of Minneapolis Quarterly Review, Spring 1990, p 3-18. K
Svensson, L.E.O. 1997, "Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets", European Economic Review, 41(6): p 1111-46. K
Romer, C.D. (1999), "Changes in Business Cycles: Evidence and Explanations", Journal of Economic Perspectives, 13, p 23-44. (Download the article from www.jstor.org)
References maked with K will be part of a compendium and for sale at Kopiutsalget, Akademika.
Additional reading list
Morgan, M. S., 1990, The history of econometric ideas, Cambridge University Press. Chp 2, 3.0(Introduction)-3.1. K
Bergman, U. M., M.D. Bordo and L. Jonung (1998), "Historical evidence on business cycles: The international experience" in J. C. Fuhrer og S. Schuh: "Beyond shocks: What Causes Business Cycles", Federal Reserve Bank of Boston Conference Series no. 42, p 65-119. K
Bj?rnland, H. C, 2000, "Detrending Methods and Stylized Facts of Business Cycles in Norway - An international comparison". Empirical Economics, 25, p 369-392. K
Hartley, J.E., Hoover, K.D. and K.D. Salyer (1997), "The Limits of Business Cycle Research: Assessing the Real Business Cycle Model", Oxford Review of Economic Policy, 13, p 34-54. K