The first module (20 hours) of the course aims to provide students with the tools needed to understand the functioning of a monetary economy, the structure of interest rates, and the operative aspects of Central Bank monetary policies. It explains what money is, the debate on its origins, the different approaches to the determinants of the demand for money and its supply, monetary policy instruments, and equilibrium in the asset markets.
The second module (40 hours) concentrates on the relations between money, prices, and outputs in the short as well as the long run. It also analyses the debate on rules and discretion in monetary policies, the Taylor rule, issues related to exchange rates, and the sustainability of public debt. These themes are developed according to both a traditional and heterodox approach.
The second module (40 hours) concentrates on the relations between money, prices, and outputs in the short as well as the long run. It also analyses the debate on rules and discretion in monetary policies, the Taylor rule, issues related to exchange rates, and the sustainability of public debt. These themes are developed according to both a traditional and heterodox approach.
Curriculum
teacher profile teaching materials
1. The Debate on the Origin of Money
2. The Money Supply and Its Endogeneity
2.1 Central Bank Analyses - 2.2 Horizontalists and Structuralists
3. The Equilibrium of the Financial Sector
3.1 The Degree of Substitutability between Financial and Real Assets - 3.2 The Stock-Flow Matrix
4. Conventional and Unconventional Monetary Policies
5. The Structure of Interest Rates
5.1 The Expectations Theory and the No-Arbitrage Condition - 5.2 The Preferred Habitat Theory - 5.3 The
Liquidity Preference Theory - 5.4 The Inverted Yield Curve
Second Module
6. Money, Prices, and Output in Traditional and Post-Keynesian Models
6.1 Money Neutrality and the Dichotomy between the Real and Monetary Sectors in a Simple Neoclassical
Model - 6.2 The Sidrauski model with money in the utility function - 6.3 Samuelson's overlapping-
generation model - 6.3 Keynes' analysis and the critique of the notion of the natural rate of interest - 6.4
Keynes' method of analysis and the simultaneous determination of real and monetary equilibrium in the IS-
LM model - 6.5 The debate on fiscal and monetary multipliers - 6.6. The New Keynesian model: the
dynamic IS curve and the Taylor rule - 6.7 The post-Keynesian model - 6.8 The price system - 6.9 Conflict
inflation and the idea of a monetary determination of distribution
7. The transmission channels of monetary policies
7.1 Traditional transmission mechanisms of monetary policy - 7.2 The wealth channel - 7.3 Tobin's stock-
flow model and the value of the fiscal multiplier - 7.3 The foreign channel
8. Monetary policy, capital movements, and the exchange rate
9. The price puzzle and the cost channel of monetary policy
10. Rules and Discretion
10.1 The debate on the Taylor Rule - 10.2 The Inflation Targeting Model - 10.3 Derivation of the Reaction
Function - 10.4 The Effect of an Expansionary Fiscal Policy and of a Change in the Inflation
Target
11. Money and Public Finance
11.1 The Intertemporal Budget Constraint - 11.2 Fiscal and Monetary Dominance Regimes - 11.3 The
Limits of Seigniorage - 11.4 The Debate on Public Debt Sustainability - 11.5 The Domar Condition - 11.6
Public Debt-to-GDP Ratio and Fiscal Policy
N.S. Balke and K.M. Emery, “Understanding the price puzzle”, Economic Review— Fourth Quarter 1994, Federal Reserve Bank of Dallas, pp. 15-26 (Module 2)
R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in E.S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory: volume 2. Aggregate Demand, Policy Analysis and Growth, Palgrave Macmillan, 2013, pp. 15-28 (Module 2)
B. Friedman, “Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits”, Brookings Papers on Economic Activity, 3:1978, pp. 599-603 and 609-620 (Module 2)
C.A.E Goodhart, Money, information and uncertainty, Second edition, Macmillan, 1989, pp. 24-50, 51-57, 129-137 (Module 1)
A. Lavoie, Post-Keynesian Economics: New Foundations, Edward Elgar, 2014, pp. 186-225 and 245-252 (Module 1)
M. Pivetti, “Interest and profits in Smith, Ricardo and Marx”, Political Economy. Studies in the surplus approach, 3, 1, 1987, pp. 63-74 (Module 2)
W. Poole, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model”, The Quarterly Journal of Economics, 84, 2, 1970), pp. 197-203 (Module 2)
J. Smithin, The theory of interest rates, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 273-290 (Module 2)
M. Vernengo, Money and inflation, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 476-489 (Module 1 and 2)
C.E. Walsh, Monetary Theory and Policy, third edition, The Mit Press, 2010, pp. 21-24, 33-71, 134-162, 195-209, 465-475 (Module 1 and 2)
C. E. Walsh, “Teaching Inflation Targeting: An Analysis for Intermediate Macro”, Journal of Economic Education, Fall 2002, pp. 333-346 (Module 2).
Programme
First Module1. The Debate on the Origin of Money
2. The Money Supply and Its Endogeneity
2.1 Central Bank Analyses - 2.2 Horizontalists and Structuralists
3. The Equilibrium of the Financial Sector
3.1 The Degree of Substitutability between Financial and Real Assets - 3.2 The Stock-Flow Matrix
4. Conventional and Unconventional Monetary Policies
5. The Structure of Interest Rates
5.1 The Expectations Theory and the No-Arbitrage Condition - 5.2 The Preferred Habitat Theory - 5.3 The
Liquidity Preference Theory - 5.4 The Inverted Yield Curve
Second Module
6. Money, Prices, and Output in Traditional and Post-Keynesian Models
6.1 Money Neutrality and the Dichotomy between the Real and Monetary Sectors in a Simple Neoclassical
Model - 6.2 The Sidrauski model with money in the utility function - 6.3 Samuelson's overlapping-
generation model - 6.3 Keynes' analysis and the critique of the notion of the natural rate of interest - 6.4
Keynes' method of analysis and the simultaneous determination of real and monetary equilibrium in the IS-
LM model - 6.5 The debate on fiscal and monetary multipliers - 6.6. The New Keynesian model: the
dynamic IS curve and the Taylor rule - 6.7 The post-Keynesian model - 6.8 The price system - 6.9 Conflict
inflation and the idea of a monetary determination of distribution
7. The transmission channels of monetary policies
7.1 Traditional transmission mechanisms of monetary policy - 7.2 The wealth channel - 7.3 Tobin's stock-
flow model and the value of the fiscal multiplier - 7.3 The foreign channel
8. Monetary policy, capital movements, and the exchange rate
9. The price puzzle and the cost channel of monetary policy
10. Rules and Discretion
10.1 The debate on the Taylor Rule - 10.2 The Inflation Targeting Model - 10.3 Derivation of the Reaction
Function - 10.4 The Effect of an Expansionary Fiscal Policy and of a Change in the Inflation
Target
11. Money and Public Finance
11.1 The Intertemporal Budget Constraint - 11.2 Fiscal and Monetary Dominance Regimes - 11.3 The
Limits of Seigniorage - 11.4 The Debate on Public Debt Sustainability - 11.5 The Domar Condition - 11.6
Public Debt-to-GDP Ratio and Fiscal Policy
Core Documentation
Bank of England, Quarterly Bulletin, Q1, 54, 1, 2014, pp. 4-28 (Module 1)N.S. Balke and K.M. Emery, “Understanding the price puzzle”, Economic Review— Fourth Quarter 1994, Federal Reserve Bank of Dallas, pp. 15-26 (Module 2)
R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in E.S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory: volume 2. Aggregate Demand, Policy Analysis and Growth, Palgrave Macmillan, 2013, pp. 15-28 (Module 2)
B. Friedman, “Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits”, Brookings Papers on Economic Activity, 3:1978, pp. 599-603 and 609-620 (Module 2)
C.A.E Goodhart, Money, information and uncertainty, Second edition, Macmillan, 1989, pp. 24-50, 51-57, 129-137 (Module 1)
A. Lavoie, Post-Keynesian Economics: New Foundations, Edward Elgar, 2014, pp. 186-225 and 245-252 (Module 1)
M. Pivetti, “Interest and profits in Smith, Ricardo and Marx”, Political Economy. Studies in the surplus approach, 3, 1, 1987, pp. 63-74 (Module 2)
W. Poole, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model”, The Quarterly Journal of Economics, 84, 2, 1970), pp. 197-203 (Module 2)
J. Smithin, The theory of interest rates, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 273-290 (Module 2)
M. Vernengo, Money and inflation, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 476-489 (Module 1 and 2)
C.E. Walsh, Monetary Theory and Policy, third edition, The Mit Press, 2010, pp. 21-24, 33-71, 134-162, 195-209, 465-475 (Module 1 and 2)
C. E. Walsh, “Teaching Inflation Targeting: An Analysis for Intermediate Macro”, Journal of Economic Education, Fall 2002, pp. 333-346 (Module 2).
Attendance
There is no obligation to attendType of evaluation
The course assessment is based on both written and oral examinations. As part of the final assessment, small dissertations on aspects related to the exogeneity or endogeneity of money supply, the Taylor rule, the Gibson Paradox and the sustainability of public debt may be submitted. teacher profile teaching materials
1. The Debate on the Origin of Money
2. The Money Supply and Its Endogeneity
2.1 Central Bank Analyses - 2.2 Horizontalists and Structuralists
3. The Equilibrium of the Financial Sector
3.1 The Degree of Substitutability between Financial and Real Assets - 3.2 The Stock-Flow Matrix
4. Conventional and Unconventional Monetary Policies
5. The Structure of Interest Rates
5.1 The Expectations Theory and the No-Arbitrage Condition - 5.2 The Preferred Habitat Theory - 5.3 The
Liquidity Preference Theory - 5.4 The Inverted Yield Curve
Second Module
6. Money, Prices, and Output in Traditional and Post-Keynesian Models
6.1 Money Neutrality and the Dichotomy between the Real and Monetary Sectors in a Simple Neoclassical
Model - 6.2 The Sidrauski model with money in the utility function - 6.3 Samuelson's overlapping-
generation model - 6.3 Keynes' analysis and the critique of the notion of the natural rate of interest - 6.4
Keynes' method of analysis and the simultaneous determination of real and monetary equilibrium in the IS-
LM model - 6.5 The debate on fiscal and monetary multipliers - 6.6. The New Keynesian model: the
dynamic IS curve and the Taylor rule - 6.7 The post-Keynesian model - 6.8 The price system - 6.9 Conflict
inflation and the idea of a monetary determination of distribution
7. The transmission channels of monetary policies
7.1 Traditional transmission mechanisms of monetary policy - 7.2 The wealth channel - 7.3 Tobin's stock-
flow model and the value of the fiscal multiplier - 7.3 The foreign channel
8. Monetary policy, capital movements, and the exchange rate
9. The price puzzle and the cost channel of monetary policy
10. Rules and Discretion
10.1 The debate on the Taylor Rule - 10.2 The Inflation Targeting Model - 10.3 Derivation of the Reaction
Function - 10.4 The Effect of an Expansionary Fiscal Policy and of a Change in the Inflation
Target
11. Money and Public Finance
11.1 The Intertemporal Budget Constraint - 11.2 Fiscal and Monetary Dominance Regimes - 11.3 The
Limits of Seigniorage - 11.4 The Debate on Public Debt Sustainability - 11.5 The Domar Condition - 11.6
Public Debt-to-GDP Ratio and Fiscal Policy
N.S. Balke and K.M. Emery, “Understanding the price puzzle”, Economic Review— Fourth Quarter 1994, Federal Reserve Bank of Dallas, pp. 15-26 (Module 2)
R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in E.S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory: volume 2. Aggregate Demand, Policy Analysis and Growth, Palgrave Macmillan, 2013, pp. 15-28 (Module 2)
B. Friedman, “Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits”, Brookings Papers on Economic Activity, 3:1978, pp. 599-603 and 609-620 (Module 2)
C.A.E Goodhart, Money, information and uncertainty, Second edition, Macmillan, 1989, pp. 24-50, 51-57, 129-137 (Module 1)
A. Lavoie, Post-Keynesian Economics: New Foundations, Edward Elgar, 2014, pp. 186-225 and 245-252 (Module 1)
M. Pivetti, “Interest and profits in Smith, Ricardo and Marx”, Political Economy. Studies in the surplus approach, 3, 1, 1987, pp. 63-74 (Module 2)
W. Poole, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model”, The Quarterly Journal of Economics, 84, 2, 1970), pp. 197-203 (Module 2)
J. Smithin, The theory of interest rates, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 273-290 (Module 2)
M. Vernengo, Money and inflation, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 476-489 (Module 1 and 2)
C.E. Walsh, Monetary Theory and Policy, third edition, The Mit Press, 2010, pp. 21-24, 33-71, 134-162, 195-209, 465-475 (Module 1 and 2)
C. E. Walsh, “Teaching Inflation Targeting: An Analysis for Intermediate Macro”, Journal of Economic Education, Fall 2002, pp. 333-346 (Module 2).
Programme
First Module1. The Debate on the Origin of Money
2. The Money Supply and Its Endogeneity
2.1 Central Bank Analyses - 2.2 Horizontalists and Structuralists
3. The Equilibrium of the Financial Sector
3.1 The Degree of Substitutability between Financial and Real Assets - 3.2 The Stock-Flow Matrix
4. Conventional and Unconventional Monetary Policies
5. The Structure of Interest Rates
5.1 The Expectations Theory and the No-Arbitrage Condition - 5.2 The Preferred Habitat Theory - 5.3 The
Liquidity Preference Theory - 5.4 The Inverted Yield Curve
Second Module
6. Money, Prices, and Output in Traditional and Post-Keynesian Models
6.1 Money Neutrality and the Dichotomy between the Real and Monetary Sectors in a Simple Neoclassical
Model - 6.2 The Sidrauski model with money in the utility function - 6.3 Samuelson's overlapping-
generation model - 6.3 Keynes' analysis and the critique of the notion of the natural rate of interest - 6.4
Keynes' method of analysis and the simultaneous determination of real and monetary equilibrium in the IS-
LM model - 6.5 The debate on fiscal and monetary multipliers - 6.6. The New Keynesian model: the
dynamic IS curve and the Taylor rule - 6.7 The post-Keynesian model - 6.8 The price system - 6.9 Conflict
inflation and the idea of a monetary determination of distribution
7. The transmission channels of monetary policies
7.1 Traditional transmission mechanisms of monetary policy - 7.2 The wealth channel - 7.3 Tobin's stock-
flow model and the value of the fiscal multiplier - 7.3 The foreign channel
8. Monetary policy, capital movements, and the exchange rate
9. The price puzzle and the cost channel of monetary policy
10. Rules and Discretion
10.1 The debate on the Taylor Rule - 10.2 The Inflation Targeting Model - 10.3 Derivation of the Reaction
Function - 10.4 The Effect of an Expansionary Fiscal Policy and of a Change in the Inflation
Target
11. Money and Public Finance
11.1 The Intertemporal Budget Constraint - 11.2 Fiscal and Monetary Dominance Regimes - 11.3 The
Limits of Seigniorage - 11.4 The Debate on Public Debt Sustainability - 11.5 The Domar Condition - 11.6
Public Debt-to-GDP Ratio and Fiscal Policy
Core Documentation
Bank of England, Quarterly Bulletin, Q1, 54, 1, 2014, pp. 4-28 (Module 1)N.S. Balke and K.M. Emery, “Understanding the price puzzle”, Economic Review— Fourth Quarter 1994, Federal Reserve Bank of Dallas, pp. 15-26 (Module 2)
R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in E.S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory: volume 2. Aggregate Demand, Policy Analysis and Growth, Palgrave Macmillan, 2013, pp. 15-28 (Module 2)
B. Friedman, “Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits”, Brookings Papers on Economic Activity, 3:1978, pp. 599-603 and 609-620 (Module 2)
C.A.E Goodhart, Money, information and uncertainty, Second edition, Macmillan, 1989, pp. 24-50, 51-57, 129-137 (Module 1)
A. Lavoie, Post-Keynesian Economics: New Foundations, Edward Elgar, 2014, pp. 186-225 and 245-252 (Module 1)
M. Pivetti, “Interest and profits in Smith, Ricardo and Marx”, Political Economy. Studies in the surplus approach, 3, 1, 1987, pp. 63-74 (Module 2)
W. Poole, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model”, The Quarterly Journal of Economics, 84, 2, 1970), pp. 197-203 (Module 2)
J. Smithin, The theory of interest rates, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 273-290 (Module 2)
M. Vernengo, Money and inflation, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 476-489 (Module 1 and 2)
C.E. Walsh, Monetary Theory and Policy, third edition, The Mit Press, 2010, pp. 21-24, 33-71, 134-162, 195-209, 465-475 (Module 1 and 2)
C. E. Walsh, “Teaching Inflation Targeting: An Analysis for Intermediate Macro”, Journal of Economic Education, Fall 2002, pp. 333-346 (Module 2).
Attendance
There is no obligation to attendType of evaluation
The course assessment is based on both written and oral examinations. As part of the final assessment, small dissertations on aspects related to the exogeneity or endogeneity of money supply, the Taylor rule, the Gibson Paradox and the sustainability of public debt may be submitted. teacher profile teaching materials
1. The Debate on the Origin of Money
2. The Money Supply and Its Endogeneity
2.1 Central Bank Analyses - 2.2 Horizontalists and Structuralists
3. The Equilibrium of the Financial Sector
3.1 The Degree of Substitutability between Financial and Real Assets - 3.2 The Stock-Flow Matrix
4. Conventional and Unconventional Monetary Policies
5. The Structure of Interest Rates
5.1 The Expectations Theory and the No-Arbitrage Condition - 5.2 The Preferred Habitat Theory - 5.3 The
Liquidity Preference Theory - 5.4 The Inverted Yield Curve
Second Module
6. Money, Prices, and Output in Traditional and Post-Keynesian Models
6.1 Money Neutrality and the Dichotomy between the Real and Monetary Sectors in a Simple Neoclassical
Model - 6.2 The Sidrauski model with money in the utility function - 6.3 Samuelson's overlapping-
generation model - 6.3 Keynes' analysis and the critique of the notion of the natural rate of interest - 6.4
Keynes' method of analysis and the simultaneous determination of real and monetary equilibrium in the IS-
LM model - 6.5 The debate on fiscal and monetary multipliers - 6.6. The New Keynesian model: the
dynamic IS curve and the Taylor rule - 6.7 The post-Keynesian model - 6.8 The price system - 6.9 Conflict
inflation and the idea of a monetary determination of distribution
7. The transmission channels of monetary policies
7.1 Traditional transmission mechanisms of monetary policy - 7.2 The wealth channel - 7.3 Tobin's stock-
flow model and the value of the fiscal multiplier - 7.3 The foreign channel
8. Monetary policy, capital movements, and the exchange rate
9. The price puzzle and the cost channel of monetary policy
10. Rules and Discretion
10.1 The debate on the Taylor Rule - 10.2 The Inflation Targeting Model - 10.3 Derivation of the Reaction
Function - 10.4 The Effect of an Expansionary Fiscal Policy and of a Change in the Inflation
Target
11. Money and Public Finance
11.1 The Intertemporal Budget Constraint - 11.2 Fiscal and Monetary Dominance Regimes - 11.3 The
Limits of Seigniorage - 11.4 The Debate on Public Debt Sustainability - 11.5 The Domar Condition - 11.6
Public Debt-to-GDP Ratio and Fiscal Policy
N.S. Balke and K.M. Emery, “Understanding the price puzzle”, Economic Review— Fourth Quarter 1994, Federal Reserve Bank of Dallas, pp. 15-26 (Module 2)
R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in E.S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory: volume 2. Aggregate Demand, Policy Analysis and Growth, Palgrave Macmillan, 2013, pp. 15-28 (Module 2)
B. Friedman, “Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits”, Brookings Papers on Economic Activity, 3:1978, pp. 599-603 and 609-620 (Module 2)
C.A.E Goodhart, Money, information and uncertainty, Second edition, Macmillan, 1989, pp. 24-50, 51-57, 129-137 (Module 1)
A. Lavoie, Post-Keynesian Economics: New Foundations, Edward Elgar, 2014, pp. 186-225 and 245-252 (Module 1)
M. Pivetti, “Interest and profits in Smith, Ricardo and Marx”, Political Economy. Studies in the surplus approach, 3, 1, 1987, pp. 63-74 (Module 2)
W. Poole, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model”, The Quarterly Journal of Economics, 84, 2, 1970), pp. 197-203 (Module 2)
J. Smithin, The theory of interest rates, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 273-290 (Module 2)
M. Vernengo, Money and inflation, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 476-489 (Module 1 and 2)
C.E. Walsh, Monetary Theory and Policy, third edition, The Mit Press, 2010, pp. 21-24, 33-71, 134-162, 195-209, 465-475 (Module 1 and 2)
C. E. Walsh, “Teaching Inflation Targeting: An Analysis for Intermediate Macro”, Journal of Economic Education, Fall 2002, pp. 333-346 (Module 2).
Programme
First Module1. The Debate on the Origin of Money
2. The Money Supply and Its Endogeneity
2.1 Central Bank Analyses - 2.2 Horizontalists and Structuralists
3. The Equilibrium of the Financial Sector
3.1 The Degree of Substitutability between Financial and Real Assets - 3.2 The Stock-Flow Matrix
4. Conventional and Unconventional Monetary Policies
5. The Structure of Interest Rates
5.1 The Expectations Theory and the No-Arbitrage Condition - 5.2 The Preferred Habitat Theory - 5.3 The
Liquidity Preference Theory - 5.4 The Inverted Yield Curve
Second Module
6. Money, Prices, and Output in Traditional and Post-Keynesian Models
6.1 Money Neutrality and the Dichotomy between the Real and Monetary Sectors in a Simple Neoclassical
Model - 6.2 The Sidrauski model with money in the utility function - 6.3 Samuelson's overlapping-
generation model - 6.3 Keynes' analysis and the critique of the notion of the natural rate of interest - 6.4
Keynes' method of analysis and the simultaneous determination of real and monetary equilibrium in the IS-
LM model - 6.5 The debate on fiscal and monetary multipliers - 6.6. The New Keynesian model: the
dynamic IS curve and the Taylor rule - 6.7 The post-Keynesian model - 6.8 The price system - 6.9 Conflict
inflation and the idea of a monetary determination of distribution
7. The transmission channels of monetary policies
7.1 Traditional transmission mechanisms of monetary policy - 7.2 The wealth channel - 7.3 Tobin's stock-
flow model and the value of the fiscal multiplier - 7.3 The foreign channel
8. Monetary policy, capital movements, and the exchange rate
9. The price puzzle and the cost channel of monetary policy
10. Rules and Discretion
10.1 The debate on the Taylor Rule - 10.2 The Inflation Targeting Model - 10.3 Derivation of the Reaction
Function - 10.4 The Effect of an Expansionary Fiscal Policy and of a Change in the Inflation
Target
11. Money and Public Finance
11.1 The Intertemporal Budget Constraint - 11.2 Fiscal and Monetary Dominance Regimes - 11.3 The
Limits of Seigniorage - 11.4 The Debate on Public Debt Sustainability - 11.5 The Domar Condition - 11.6
Public Debt-to-GDP Ratio and Fiscal Policy
Core Documentation
Bank of England, Quarterly Bulletin, Q1, 54, 1, 2014, pp. 4-28 (Module 1)N.S. Balke and K.M. Emery, “Understanding the price puzzle”, Economic Review— Fourth Quarter 1994, Federal Reserve Bank of Dallas, pp. 15-26 (Module 2)
R. Ciccone, “Public Debt and Aggregate Demand: Some Unconventional Analytics”, in E.S. Levrero, A. Palumbo and A. Stirati (eds), Sraffa and the Reconstruction of Economic Theory: volume 2. Aggregate Demand, Policy Analysis and Growth, Palgrave Macmillan, 2013, pp. 15-28 (Module 2)
B. Friedman, “Crowding Out or Crowding In? Economic Consequences of Financing Government Deficits”, Brookings Papers on Economic Activity, 3:1978, pp. 599-603 and 609-620 (Module 2)
C.A.E Goodhart, Money, information and uncertainty, Second edition, Macmillan, 1989, pp. 24-50, 51-57, 129-137 (Module 1)
A. Lavoie, Post-Keynesian Economics: New Foundations, Edward Elgar, 2014, pp. 186-225 and 245-252 (Module 1)
M. Pivetti, “Interest and profits in Smith, Ricardo and Marx”, Political Economy. Studies in the surplus approach, 3, 1, 1987, pp. 63-74 (Module 2)
W. Poole, “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model”, The Quarterly Journal of Economics, 84, 2, 1970), pp. 197-203 (Module 2)
J. Smithin, The theory of interest rates, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 273-290 (Module 2)
M. Vernengo, Money and inflation, in P. Arestis and M. Sawyer, A Handbook of Alternative Monetary Economics, Edward Elgar, 2006, pp. 476-489 (Module 1 and 2)
C.E. Walsh, Monetary Theory and Policy, third edition, The Mit Press, 2010, pp. 21-24, 33-71, 134-162, 195-209, 465-475 (Module 1 and 2)
C. E. Walsh, “Teaching Inflation Targeting: An Analysis for Intermediate Macro”, Journal of Economic Education, Fall 2002, pp. 333-346 (Module 2).
Attendance
There is no obligation to attendType of evaluation
The course assessment is based on both written and oral examinations. As part of the final assessment, small dissertations on aspects related to the exogeneity or endogeneity of money supply, the Taylor rule, the Gibson Paradox and the sustainability of public debt may be submitted.