• Class Number 6401
  • Term Code 2950
  • Class Info
  • Unit Value 6 units
  • Mode of Delivery In Person
    • Prof Ippei Fujiwara
    • Prof Ippei Fujiwara
  • Class Dates
  • Class Start Date 15/07/2019
  • Class End Date 26/09/2019
  • Census Date 02/08/2019
  • Last Date to Enrol 22/07/2019
SELT Survey Results

This course examines key analytical, empirical and policy issues in monetary policy and central banking. There is a strong emphasis on theory supported by a range of applications, in particular to the Asia Pacific region. Topics covered include empirical features of inflation and output, the monetary transmission mechanism, MIU and CIA models of inflation, the Cagan model of inflation, the credit channel, welfare costs of inflation and deflation, public finance aspects of monetary policy, structural uncertainty, time inconsistency, targeting regimes, instrument choice, open economy issues of monetery economics, New Keynesian models of inflation, and models with microfoundations. Time permitting, additional topics will include recent evidence on money illusion, indeterminacy, multiple equilibria, sunspots, and other advanced topics. Two of the lectures will be guest lectures given by eminent academic/central bankers with decades of policy experience.

The course material is very technical and students are expected to have a very good understanding of static and dynamic optimisation methods.

Text books below are considered the standard textbooks for the modern central banking and useful to understand above topics.

- Gali, Jordi, 2008, Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, Princeton University Press

- Walsh, Carl, 2010, Monetary Theory and Policy, MIT Press.

- Woodford, Michael, 2003, Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press.

Staff Feedback

Students will be given feedback in the following forms in this course:
  • Written comments
  • Verbal comments
  • Feedback to the whole class, to groups, to individuals, focus groups

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Class Schedule

Week/Session Summary of Activities Assessment
1 Week1, 22/7, VAR(1) VAR (1) and (2): Short-Run Restriction - Sims, Christopher, 1980, •Macroeconomics and Reality, Econometrica. - Christiano, Lawrence, Martin Eichenbaum, and Charles Evans, 1999, Monetary Policy Shocks: What Have We Learned to What End?? Handbook of Macroecononomics. - Leeper, Eric, Christopher Sims and Tao Zha, 1996, What Does Monetary Policy Do? Brooking Paper on Economic Activities.
2 Week2, 29/7, VAR(2)
3 Week3, 5/8, VAR(3) VAR (3): Long-Run Restriction - Blanchard, Olivier and Danny Quah, 1989, "The Dynamic Effects of Aggregate Demand and Supply Disturbances," American Economic Review. - Gali, Jordi and Pau Ravanal, 2005, Technology Shocks and Aggregate Fluctuations: How Well Does the Real Business Cycle Model Fit Postwar U.S. Data? NBER Macroeconomics Annual.
4 Week4, 12/8, VAR(4) VAR (4): Sign Restriction and Panel VAR - Canova, Fabio, and Gianni De Nicol , 2002, "Monetary Disturbances Matter for Business Fluctuations in the G-7," Journal of Monetary Economics. - Uhlig, Harald, 2005, "What are the Effects of Monetary Policy on Output? Results from an Agnostic Identification Procedure," Journal of Monetary Economics. - Canova, Fabio, and Ciccarelli, Matteo, 2013. "Panel Vector Autoregressive Models: A Survey," CEPR Discussion Papers.
5 Week5, 19/8, DSGE(1) DSGE (1): Real Business Cycle Model - Kydland, Finn and Edward Prescott, 1982, "Time to Build and Aggregate Fluctuations," Econometrica. - King, Robert, Charles Plosser, and Sergio Rebelo, 1988, "Production, Growth and Business Cycles : I. The Basic Neoclassical Model," Journal of Monetary Economics.
6 Week6, 26/8, DSGE(2) DSGE (2): New Keynesian Model - Clardia, Richard, Mark Gertler and Jordi Gali, 1999, "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature - Christiano, Lawrence, Martin Eichenbaum, and Charles Evans, 2005, Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy, Journal of Political Economy.

Assessment Summary

Assessment task Value Due Date Return of assessment
Short Paper on VAR or DSGE 50 % 31/10/2019 28/11/2019
practical questions on VAR and DSGE 50 % 30/08/2019 28/11/2019

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details


ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Assessment Task 1

Value: 50 %
Due Date: 31/10/2019
Return of Assessment: 28/11/2019
Learning Outcomes: 

Short Paper on VAR or DSGE

Students are asked to write a short paper using the VAR, which is less than 10 page long. The paper does not have to be very unique, but must at least contains some new featues, such as new data, or new relationship among macroeconomic variables.

The evaluation of the assignments should be based on the three criteria below:

- whether the structure of the paper is consistent with the standard format in academic papers;

- how the students understand the basic theory of the VAR or the DSGE;

- how unique their findings are.

Assessment Task 2

Value: 50 %
Due Date: 30/08/2019
Return of Assessment: 28/11/2019
Learning Outcomes: 

practical questions on VAR and DSGE

Final exam will be held in the mid-semester exam period in Semester 2.

Details are TBA.

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service — including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).
Prof Ippei Fujiwara

Research Interests

Prof Ippei Fujiwara

Prof Ippei Fujiwara
02 6125 0093

Research Interests

Prof Ippei Fujiwara

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