Teorìa
y Polìtica Monetaria Home Page (Spring 2000)
Marco
Del Negro
Welcome to the Teoria y Politica
Monetaria home page!
Announcement: Catch
up class Friday April 28, 2:30 pm Room 201 Sta. Teresa
Copies of the articles can be found at 'Coffee
and Copies'
Office: CIE, Camino Sta. Teresa
email: delnegro@itam.mx
Phone: 628 4197, ext. 2962
Office hrs by appointment
(many thanks to Marco Pagano
and Michael Woodford: the material taught in this class is mainly drawn
from their lecture notes. All mistakes are of course my own.)
-
Syllabus
PART I: Preliminaries
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Class
1: ASSET PRICING AND FORWARD LOOKING BEHAVIOR, link to Dow Jones and
other Stock Market indicators (here)
-
What Do Asset Prices Tell Us about the Future?
[Federal Reserve Bank of Atlanta Economic Review, Third Quarter 1999]
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Stocks in trade [The Economist]
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Class
2: THE PRICE OF DURABLE GOODS
PART II: Monetary Theory and Policy
in a Closed Economy
"money, unlike regular goods like
bread, derives its value from convention, institution and, more than any
other good, from expectations" Guillermo
A. Calvo
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Class
3: THE ROLE OF MONEY: A ``CASH IN ADVANCE´´ MODEL
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Who needs money? [The Economist, Jan. 22 2000]
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Class
4: THE VALUE OF MONEY: THE SIDRAUSKI-BROCK MODEL,
figure 5.1, 5.2
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Paper gains [The Economist, December 31 1999]
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Class
5: INFLATION AND THE GROWTH RATE OF MONEY SUPPLY
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Are Money Growth and Inflation Still Related?
[Federal Reserve Bank of Atlanta Economic Review, Second Quarter 1999]
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Class
6: INFLATION AND THE NOMINAL INTEREST RATE
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Class
7: THE BENEFITS FROM REDUCING INFLATION
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The cost of inflation [The Economist]
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How low is low enough? [The Economist, November
7 1992]
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Class
8: THE EFFECTS OF CHANGES IN MONETARY POLICY,
figure;
the end of hyperinflation in Bolivia (here
and here)
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Class
9: THE EFFECTS OF ANTICIPATED CHANGES IN MONETARY POLICY, figures 1,
2
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The End of Four Big Inflations, from Thomas J.
Sargent, 'Rational Expectations and Inflation', Harper-Collins, 1993
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Loads of Money [The Economist, December
31 1999]
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Class
10: THE INTERACTION BETWEEN FISCAL AND MONETARY POLICY: THE INTERTEMPORAL
BUDGET CONSTRAINT OF THE GOVERNMENT
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Reaganomics and credibility, from Thomas J. Sargent,
'Rational Expectations and Inflation', Harper-Collins, 1993
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An open letter to the Brazilian Finance Minister,
from Thomas J. Sargent, 'Rational Expectations and Inflation', Harper-Collins,
1993
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Class
11: ACTIVE/PASSIVE MONETARY AND FISCAL POLICIES, figure 1
Greatest
Hits I
PART III: Monetary policy in an
open economy
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Class
12: MONETARY POLICY IN AN OPEN ECONOMY
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Class
13: FIXED EXCHANGE RATES AND 'CRAWLING PEG'
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The Mirage of Fixed Exchange Rates, M. Obstfeld
and K. Rogoff, Journal of Economics Perspectives, Fall 1995
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Class
14: FIXED EXCHANGE RATES AS A WAY OF STOPPING INFLATION, figure
PART IV: Monetary policy,
production, and employment
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Class
15: MONETARY POLICY, PRODUCTION, AND EMPLOYMENT
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Class
16: IS MONETARY POLICY NEUTRAL?, figure 1,
2
PART V: Credibility and time
inconsistency
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Class
17: POLICY GAMES: MONETARY POLICY AND THE UNEMPLOYMENT/INFLATION
TRADE OFF
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Class
18: REPUTATION AND TARGETING
Problem Sets:
Links to data sources:
data on Mexico: click here
international data (main economic indicators from
OECD): click here
international data (long term growth) from Penn World
Table: click here
read about the 1994 financial crises in Mexico (here)
read all about the financial crises in Asia (here)
Please notice: If
you do not have Adobe Acrobat in your computer, you will not be able to
read pdf files! However, you can download it for free by clicking here(once
you have downloaded the file, just open it with any File Manager,
ie Explorer..., and Adobe will automatically get installed on your computer)
Back to my home
page.