- 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
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 FeedbackStudents 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 FeedbackANU 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.
|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 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
PoliciesANU 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 RequirementsThe 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 AssessmentMarks 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
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
practical questions on VAR and DSGE
Final exam will be held in the mid-semester exam period in Semester 2.
Details are TBA.
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Online SubmissionThe 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 SubmissionFor 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.
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.
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