Ruhr University Bochum – Summer Semester 2017
This module covers theoretical models on business cycle fluctuations, inflation, unemployment, and economic growth at an intermediate to advanced level. It provides an overview over the most important macroeconomic topics and introduces students to concepts that are important for more advanced studies of macroeconomics and for practical work in this field. The focus of this module is on aggregate models without microfoundations. We use the theoretical models to introduce and to discuss important issues of macroeconomic policy concerning growth, employment, inflation and macroeconomic stabilization.
Lecture slides:
1.Demand and supply dynamics: overview The 3-equations model
2. Expectations, inflation, and the Phillips curve
3. Money, banking and the macro economy
4. The financial sector and crises
5. The global financial crisis: applying models
6. Monetary policy
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Suggested readings on ZLB, Qunatitative Easing, the Japanese experiment:
– article: What Is Money And How Is It Created? (here)
– article: People have no idea how money is created
– article: Paul Krugman, Zero lower bound blogging, NYT, 17 Gennaio 2009
– article:The zero lower bound in our minds, The Economist, 7 gennaio 2012
– official document: Statement della Bank of Japan (Settembre 2013)
– IMF Warns Japan About Using Monetary Policy as Crutch, Wall Street Journal (2013)
– Stiglitz, J. Japan Is a Model, Not a Cautionary Tale, New York Times (2013)
– Miyao R. (Member of the Policy Board, BoJ), 12 Novembre 2014, Economic Activity and Prizes in Japan and Monetary Policy, Speech at meeting with business leaders in Nagasaki
–The zero lower bound in our minds, The Economist, 7 gennaio 2012
–How binding is the zero lower bound?, Speech by Benoît Cœuré, Member of the Executive Board of the ECB, at the conference “Removing the zero lower bound on interest rates”, London, 18 May 2015
Bank of Japan raises the bar for European Central Bank, Novembre 2014, Financial Times
Bank of Japan opts for another dose of shock and awe, Novembre 2014, Financial Times
A bigger bazooka, Japan’s quantitative easing, The Economist, Novembre 2014
The ECB must show leadership to fight threat of deflation, Lorenzo Bini Smaghi, Financial Times, Novembre 2014
Selected research papers:
- Bordo and Filardo, 2004; Deflation and Monetary Policy in a historical perspective: remembering the past or being condemned to repeat it?, NBER working paper 10833
- Mishkin, 2004, Two decades of Japanese Monetary Policy and the deflation problem, NBER working paper
Paola D'Orazio 