Session: One
Prerequisites: Intermediate Macroeconomics
Dr Kosuke Aoki
Dr Gianluca Benigno
How does the recent financial turmoil affect the macroeconomy? Why do some countries experience sharp swings in exchange rates? What are the causes of inflation and deflation? What should central banks do under such circumstances? In order to answer those and related questions, this course provides a set of tools to examine the interaction between monetary policy, the real economy and financial sector. The course will combine the analysis of these theoretical frameworks with recent events and policy debates. Emphasis will be given to the international dimensions of monetary policy, exchange rate determination and financial crisis.
Topics to be covered include:
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Inflation and debt finance
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Banking and management of financial institutions
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Financial markets and macroeconomy
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Monetary transmission mechanism and monetary policy
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Current account dynamics
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Exchange rates and currency crisis
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Financial crisis, liquidity trap and monetary policy