Beatriz de Blas Pérez's web page
Contact

Monetary Theory and Policy (Reading course)
2004-2005

Money and Economic Activity: The Evidence October, 9

• (*)Christiano, L.J., M. Eichenbaum, and C. Evans. 1998. "Monetary Policy Shocks: What Have We Learned and to What End?," in J.B. Taylor and M. Woodford eds., Handbook of Macroeconomics, vol. 1A, 65-148. Also available as NBER WP#6400
• (*)Cooley, T.F. y G.D. Hansen. 1995. "Money and the Business Cycle," in T. Cooley ed., Frontiers of Business Cycle Research (Princeton University Press), section 2.
• (*)McCandless, G.T.Jr. y W.E. Weber. 1995. Some Monetary Facts Federal Reserve Bank of Minneapolis Quarterly Review, vol. 19, no. 3, Summer.
• Coleman, W.J.II. 1996. "Money and Output: A Test of Reverse Causation." American Economic Review, vol. 86, no. 1, March: 90-111.
• Eichenbaum, M. and C. Evans. 1995. "Some Empirical Evidence on the Effects of Shocks to Monetary Policy on Exchange Rates," Quarterly Journal of Economics, 110, no. 4, 975-1010. Also available as NBER WP#4271
• Peersman, G. and F. Smets. 2001. The Monetary Transmission Mechanism in the Euro Area: More Evidence from VAR Anaysis, ECB Working Paper #91.

Some Frameworks for Monetary Analysis

Flexible Price Models November, 9

• (*)Walsh, C.E. 2003. Monetary Theory and Policy. Second Edition, MIT Press, chapters 2-3.
• (*)Cooley, T.F. y G.D. Hansen. 1989. "The Inflation Tax in a Real Business Cycle Model." American Economic Review, 79, no. 4, September: 733-748.
• (*)Hellwig, Martin F., 1993. "The Challenge of Monetary Theory," European Economic Review, Elsevier, vol. 37(2), pages 215-242, 4.
• Fuerst, T. 1992. "Liquidity, Loanable Funds, and Real Activity." Journal of Monetary Economics, 29, 3-24.
• Christiano, L. 1991. Modelling the Liquidity Effect of a Money Shock. Federal Reserve Bank of Minneapolis, Quarterly Review, 15, 1, Winter, 3-34.
• Lucas, R.E.Jr. 1990. "Liquidity and Interest Rates."Journal of Economic Theory, 50, 2, April, 237-264.
• Carlstrom C.T. and T.S. Fuerst. 2001. "Timing and Real Indeterminacy in Monetary Models," Journal of Monetary Economics, 47, 2, April, 285-298.

Sticky Prices November, 23

• (*)Galí, J. 2003. "New Perspectives on Monetary Policy, Inflation, and the Business Cycle," in Advances in Economics and Econometrics, vol. III, ed. by M. Dewatripont, L. Hansen, and S. Turnovsky, CUP also as NBER WP#8767 and here
• (*)Christiano, L.J., M. Eichenbaum, and C. Evans. 1997. "Sticky Price and Limited Participation Models of Money: A Comparison," European Economic Review,41, 1201-1249. Also available as NBER WP#5804
• (*)Walsh, C.E. 2003. Monetary Theory and Policy. Second Edition, MIT Press, chapter 5?.

Sticky Wages November, 23

• (*)Walsh, C.E. 2003. Monetary Theory and Policy. Second Edition, MIT Press, chapter 5?.
• (*)Erceg, C.H., D.W. Henderson, and A.T. Levin. 2000. "Optimal Monetary Policy with Staggered Wage and Price Contracts," Journal of Monetary Economics, vol 46, no. 2: 281-314.

The New Phillips Curve November, 30

• (*)Galí, J. and M. Gertler. 1998. "Inflation Dynamics: A Structural Econometric Analysis," Journal of Monetary Economics, vol. 44, no. 2, 195-222. Also available here
• (*)Mankiw, N.G. and R. Reis. 2002. "Sticky Information vs. Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve," Quarterly Journal of Economics, vol. 117, issue 4, 1295-1328. Also available here

Criticism December, 17

Monetary Theory vs. Shortcuts

• (*)Hellwig, Martin F., 1993. "The Challenge of Monetary Theory," European Economic Review, Elsevier, vol. 37(2), pages 215-242, 4.
• (*)Wallace, Neil, 1998. A Dictum for Monetary Theory, Federal Reserve Bank of Minneapolis Quarterly Review, pages 20-26.

Price Theory and Money - Aggregation Theory

• (*)Pesek, Boris P., 1992, "Microeconomics of Money Supply and Demand," Revue économique politique, Vol. 102, p. 45-68.
• (*)Barnett, William A., 1997. "Which Road Leads to Stable Money Demand?," The Economic Journal, Royal Economic Society, vol. 107(127), pages 1171-85, July.

Monetary Policy Rules December, 9

• (*)Clarida, R., J. Galí, and M. Gertler. 1997. "Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory," Quarterly Journal of Economics, vol. 115, no. 1, 147-180. Also available here
• (*)Rotemberg, J. and M. Woodford. 1999. "Interest Rate Rules in an Estimated Sticky Price Model," in J.B. Taylor ed., Monetary Policy Rules, University of Chicago Press. Also available as NBER WP#6618
• Orphanides, A. 2003. "The Quest of Prosperity without Inflation," Journal of Monetary Economics, 50, 633-663. Also available as ECB WP#15