Monetary Theory and Policy
Course: Economics 470/570
Professor: Mark Thoma
Office/Hours: PLC 471 on M/W 12:00-1:00 p.m.
Phone/Email: (541) 346-4673,
[email protected]
Web Page:
http://mthoma.uoregon.edu/Economics470/
Text: Principles of Money, Banking, and Financial Markets, 11th edition, by Ritter, Silber, and Udell, Pearson Addison-Wesley.
Prerequisites: Economics 313 or the equivalent.
GTF, Office Hours, Location, and Email Address:
Beilei Cai T/Th 12:00-1:00 PLC 537 [email protected]
Tests: There will be two midterm exams and a comprehensive final. The midterms will be given Monday, January24th and Monday, February 21st, and the final exam will be given on Monday, March 14th at 10:15 a.m. No make-up exams will be given. If you cannot take the midterms and the final exam on the scheduled dates, please do not sign up for the class.
Homework: Problem sets will be assigned periodically. These are not graded, but it is strongly recommended that you do them.
Grading: Grades will be assigned according to your relative standing in the class. The midterms are worth 30% each and the final is worth 40%.
Tentative Course Outline: Introduction
Introduction (ch. 1 )
The Role of Money in the Macroeconomy (ch. 2, 4, pgs. 63-64)
Banks and Other Intermediaries
Financial Intermediation class notes
Central Banking and the Conduct of Monetary Policy
Structure of Central Banks and the Federal Reserve System (ch. 17)
Bank Reserves and the Money Supply (ch. 18)
The Instruments of Central Banking (ch. 19)
Monetary Policy Strategy (ch. 21)
Monetary Theory
The Classical foundations (ch. 22)
The Keynesian Framework (ch. 23)
The IS-LM Model (ch. 24)
Short-Run Stabilization Policy (ch. 25)
The AS-AD Model and Stabilization Policy (ch. 26)
Rational Expectations: Theory and Policy Implications (ch. 27)
Empirical Evidence on Monetary Policy Effectiveness (ch. 28)
