Monetary Policy

Recommended Prerequisites

Students attending this module should be familiar with basic economic and statistical terminology. Basic knowledge of statistics and macroeconomics is desirable. 

Teaching Methods

Mixed theoretical-practical classes; discussion of case studies in class; preparation by students of the discussion of case studies.

Learning Outcomes

1. explain the problem of defining the monetary aggregate and compare different solutions;
2. describe and compare the use of different monetary policy instruments;
3. describe and analyze different mechanisms of transmission of economic policy;
4. relate the evolution of central bank statutes and objectives with the evolution of economic analysis;
5. describe and compare different monetary policy strategies;
6. describe the relation between monetary policy and fiscal policy;
7. present and compare the most salient features of monetary policy in the main economic areas of the world.

Work Placement(s)

No

Syllabus

1. Introduction to monetary policy
2. Monetary aggregates
3. Instruments and transmission mechanisms
4. The goals of monetary policy
5. The statutes of the central bank
6. Monetary policy strategies
7. Monetary policy and fiscal policy.

Assessment Methods

Assessment
Presentations: 20.0%
Mini Tests: 40.0%
Project: 40.0%

Bibliography

Bernanke, B.S. (2022). 21st Century Monetary Policy: The Federal Reserve from the Great Inflation to COVID-19. W. W. Norton & Co.
Bindseil, B. (2014). Monetary Policy Operations and the Financial System. Oxford University Press.
Bofinger, P. (2001). Monetary policy: goals, institutions, strategies, and instruments. Oxford University Press.
Buiter, W. (2020). Central Banks as Fiscal Players. Cambridge University Press.
Herger, N. (2019). Understanding Central Banks. Springer.
Hetzel, R.L. (2008). The Monetary Policy of the Federal Reserve: A History. Cambridge University Press.
Issing, O. (2019). The Long Journey of Central Bank Communication. The MIT Press.
Stracca, L. (2018). The Economics of Central Banking. Routledge.
Sumner, S. (2021). The Money Illusion. University of Chicago Press.
Ugolini, S. (2017). The Evolution of Central Banking: Theory and History. Palgrave.