Reading list for EC590: Applications of Advanced
Macroeconomic Theory
Introduction:
Why do we need monetary policy?
Monetary
policy and dynamic consistency
* Obstfeld and Rogoff, p. 638-648 (distributed in class)
* Romer, Ch. 10 (distributed in class)
Barro,
Rober J. and David Gordon (1983). “Rules, Discretion and Reputation in a Model of Monetary
Policy.” Journal of Monetary
Economics 12 (July): p. 101-121.
Week 2
Monetary
policy and dynamic consistency , continued
April 12 (Thus.), 6pm, Nina Marini’s lecture “Competing in the Japanese Online Market: The Challenge
of Balancing Global and Local Resources”
Week 3
Monetary
policy and dynamic consistency , continued
The
* Bernanke, Ben and Fredric Mishkin
(1997) “Inflation Targeting: A New Framework for
Monetary Policy?”, The Journal of
Economic Perspectives, Vol. 11, No. 2. (Spring), pp. 97-116.
* Mishkin, F. S. and K. Schmidt-Hebbel (2001) “One Decade of
Inflation Targeting in the World: What Do We Know and What Do We Need to
Know?” NBER Working Paper No. 8397 (July).
* Svensson, Lars E.O. (1997) “Monetary Policy
and Inflation Targeting,” NBER Reporter
Winter 1997/98
Taylor, John
(1993). “Discretion versus Policy Rules in Practice.” Carnegie
Week 4
Uncertainty
and international financial markets
* Obstfeld and
* Sill, Keith
(2001). “The
Gains from International Risk Sharing,”
Business Review, Federal Reserve Bank
of
Week 5
Uncertainty
and international financial markets, continued
May 5, 12am (May 4, midnight) The take-home
exam is available here.
It will be due at 9am on May 9 (Wednesday).
Week 6
May 8,
Tuesday No class.
May 9, 9am The take-home exam is due.
May 10 (Thurs.), 6pm, Ulrike Schaede’s
lecture “
Week 7
Asset markets and monetary policy
Erika: Bernanke, Ben and
Mark Gertler, “Monetary policy
and asset price volatility,” Federal Reserve
Bank of Kansas City, Economic Review, Fourth Quarter 1999, 84(4), pp. 17-52.
James: Cecchetti,
Stephen G (2003), “What the FOMC Says and Does When the Stock Market Booms,” presented at Reserve Bank of
Australia 2003 Conference (August 18-19).
Liquidity
trap
Josh: Krugman, Paul, 2000. “Thinking About the Liquidity Trap,” Journal
of the Japanese and International Economies 14, 221–237. Read
also Krugman (1998), “It’s baaack: Japan’s Slump and the Return of the Liquidity
Trap,” Brookings
Papers on Economic Activity, 2, 137 – 187.
Brien: Goodfriend,
Marvin, 2000, “Overcoming the
Zero Bound on Interest Rate Policy,” Journal of Money, Credit and Banking, Vol.
32, No. 4 (November).
Week 8
Globalization
Anna: Rogoff, Kenneth (2003).
“Globalization and Global Disinflation,” mimeo, IMF.
Monique: Sinn, Hans-Werner (2007). “The Welfare State and the Forces of
Globalization,” NBER Working
Paper No. 12946
International
risk sharing
Basil: Backus, D., Kehoe, P., and Kydland, F., (1992). “International Real Business Cycles,” Journal of Political Economy, 100:
745-775.
Tim: Mélitz, Jacques and Frédéric Zumer
(1999), “Interregional and international
risk-sharing and lessons for EMU,”
Carnegie-Rochester Conference Series on
Public Policy, Volume 51, Pages 149-188
(December)
Week 9
The first round of
write-ups (on two papers) are due!
Transmissions
of international shocks
James: Ehrmann, Michael and Marcel Fratzscher
(2006). “Global
financial transmission of monetary policy shocks,” European Central Bank Working Paper series,
No. 616 (April).
Basil: Connolly, R. and Wang, A. F. (2003),
“International Equity Market Comovements: Economic Fundamentals or Contagion?” Pacific-Basin Finance Journal, 11,
23-43.
Unemployment
issues
Brien: Oswald, Andrew J. (1996). “A Conjecture on the Explanation for High Unemployment in the Industrialized Nations: Part I,” mimeo,
Josh: Blanchard, Olivier and Justin Wolfers
(2000). “The Role
of Shocks and Institutions in the Rise of European Unemployment: The Aggregate
Evidence,” The Economic Journal, Vol. 110, No. 462, Conference Papers. (Mar., 2000), pp. C1-C33.
Week 10
Economic growth
Erica and Tim: Barro, Robert J. (1996). “Determinants of Economic Growth: A Cross-Country
Empirical Study,” NBER Working Paper No. 5698.
Globalization 2
Monique: Bailliu, J. N., 2000.
“Private
Capital Flows, Financial Development, and Economic Growth in Developing
Countries,” Working Papers 00-15, Bank of
Anna: Rajan, Raghuram G., Luigi Zingales (2003). “The Great Reversals: The Politics of Financial
Development in the 20th Century,” Journal of Financial
Economics 69.