One lecture session per week. Problem sets are due one week after the sessions they cover; see Assignments and Exams.
| Ses # | Topic | Required preparation / output |
|---|---|---|
| Part I · Money and prices | ||
| 1 | Money, Inflation and Transmission: The Facts | Quantity theory and money demand on U.S. data |
| 2 | Money in General Equilibrium | Money-in-utility, cash-in-advance and the Friedman rule |
| 3 | The Classical Monetary Model | First Dynare model; neutrality and price-level determinacy |
| Part II · The New Keynesian core | ||
| 4 | Price and Wage Setting | Calvo pricing and the New Keynesian Phillips curve |
| 5 | The Basic New Keynesian Model | Impulse responses and the determinacy region |
| 6 | Optimal Monetary Policy | Discretion versus commitment; welfare loss |
| 7 | Policy Rules and Frameworks | Taylor rules; inflation versus price-level targeting |
| Part III · Extensions | ||
| 8 | Monetary Policy in Small Open Economies | Galí–Monacelli model; exchange-rate regimes |
| 9 | Financial Frictions and the Credit Channel | Financial accelerator; credit spreads |
| 10 | The Zero Lower Bound and Unconventional Policy | Liquidity trap; forward guidance puzzle |
| 11 | Monetary–Fiscal Interactions | Active/passive regimes; fiscal theory of the price level |
| Part IV · Heterogeneity and estimation | ||
| 12 | HANK and Monetary Transmission | TANK multiplier; marginal propensities to consume |
| 13 | Bayesian Estimation of Monetary DSGE Models | Posterior mode and Metropolis–Hastings |
| Part V · Evidence and practice | ||
| 14 | Identifying Monetary Policy Shocks | Recursive VAR; local projections with narrative shocks |
| 15 | Central Banking in Practice | Inflation targeting evidence; inflation-at-risk |