Money and Monetary Policy (ECOM-434)

August 12, 2019

Please note that, if you happen to find conflicting information between this page and Courses/Sisu page, consider the Courses/Sisu page the primary source of information.

Method of completion: contact teaching

Schedule:

  • Courses page (you can view the information on this site without logging in or registering, but some of the content added by teachers to course pages may be available to course participants only, for example Moodle course enrolment key) and/or
  • Sisu page

 

Study material:

  • Can be found in the Moodle learning platform
  • A link and a Moodle course key will be sent by email before the course starts and/or they will be provided on the Courses page, see above
  • Log in with your UH username to be able to use all the features of the course workspace

 

Enrollment:

  • In UH’s Sisu with your UH username
  • To be able to register for the course in Sisu, please note that
    • You must have a valid right to study at the course host university
    • You have created your primary personal study plan (HOPS) based on your study right
    • You have added the course for which you are registering to your HOPS
    • More information can be found on the webpage How to enroll in the courses?

 

Content:

The goal of the course is to provide an introduction to monetary macroeconomics and the role of money and monetary policy in the economy. After describing what monetary macroeconomics is about, students will learn how the money supply is determined in the economy and how it changes. The course emphasises price stickiness as the key factor underlying the short-run effectiveness of monetary policy. Different models are used to show how an economy can fall into a liquidity trap and what the potential measures are through which policy makers can try to lift an economy from the liquidity trap. The core of the course is optimal monetary policy. Different models also show how the time inconsistency of the optimal pre-commitment policy emerges when policy makers are dynamically optimising their policy choices and how the inflation and stabilisation bias bedevil optimal discretionary monetary policy. The aim of the course is to learn to use simple analytical tools to understand basic features of money and monetary policy from the point of view of the shortrun macroeconomic equilibrium of an economy.