Mon­et­ary Policy

Course content

Monetary policy affects direct or indirect all of us. This course will showcase the start-of-the-art monetary policy models. The course will also discuss the possible implementation of Central Bank Digital Currencies. During the course, the students will have an overview of models in monetary economics, with a special emphasis on New Keynesian models and their implications for monetary policy.

Topics:

• Classical Monetary Model 
• The Basic New Keynesian Model
• Monetary Policy Design in the Baseline Model
• Monetary Policy Tradeoffs: Discretion versus Commitment
• A Model with Sticky Wages and Prices
• Unemployment in the New Keynesian Model
• Monetary Policy in the Open Economy
• Central Bank Digital Currencies

In relation to Nordic Nine principles the course provides a theoretical framework so students can understand, analyze, and communicate monetary policies. And we want our students to be able to participate in interdisplinary work processes to make informed decisions about the business environment. All of this relates to the Value principle that:

“you are critical when thinking and constructive when collaborating”

Second, by the very nature of macroeconomic data and macroeconomic modelling, the course relates to the Knowledge principle that:

“you are analytical with data and curious about ambiguity”

Finally, monetary policy theories taught in this course aim at maximizing welfare to the current and future generations and that directly relates to the Action principle that:

“you produce prosperity and protect the prosperity of next generations”.