Monetary Policy (GRAE012)

This course will analyse a range of current questions in monetary economics through a variety of lenses. Students will develop a critical understanding of both theoretical and empirical strategies used in the literature. We will study the evolving role of the central bank, starting from the importance of its independence, considering the role of commitment and credibility in monetary policy, and progressing to the frontier of unconventional monetary policy (such as forward guidance and quantitative easing) and macroprudential policy. The recent experience of the Great Recession followed by disinflation and post-Covid increase in inflation have raised questions in effectiveness of monetary policy. At the same time, new methods to address these challenges have been developed, and new tools have been used. We will also explore a variety of other topics in monetary economics, including financial stability issues, exchange rate regimes, sovereign debt, and the European debt crisis. The students will also gain practical experience in research, report writing, and organizing and delivering professional presentations. The course requires a substantial amount of preparation by the students and active involvement during and outside of class. Feedback from students regarding course content and delivery is always welcome. The students will be asked to read various articles before every lecture and be prepared to discuss those articles in class.

• Students will be able to identify underlying assumptions, limitations of previous research; evaluate managerial solution alternatives.
• Students will become independent learners and develop their own comprehension of scientific theories, models, and concepts.
• Students will be able to evaluate past and current practices in their discipline from an ethical perspective.
• Students will develop and deliver a coherent oral presentation.
• Students will develop and deliver a coherent written research paper.