Monetary Economics
Leo Ferraris
Office: 40, 2nd floor; office hour: by appointment
Email: [email protected]
University of Rome, Tor Vergata
November/December 2016
The Course
• Introduction to theory of money:
1. store of value
2. medium of exchange
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Three models:
Models with Spatial Separation (T)
Overlapping Generations (OLG)
Search Model (Kiyotaki-Wright)
Material
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Champ, B. & S. Freeman (2001), Modeling
Monetary Economics, CUP (CF)
Townsend, R. (1980), Models of Money with
Spatially Separated Agents, in Models of
Monetary Economies, OUP (T)
Wallace, N. (1997), Absence of Double
Coincidence Models of Money, MinnFed (W)
Lagos, R. & R. Wright (2005), A Unified
Framework for Monetary Theory and Policy, JPE
(LW)
Lectures
• 12 lectures, 3 h; first meeting 7th November
• Monday 10am-1pm; Friday 2-5pm
• Room P10
Road Map
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The following list of topics is suggestive and may be modified during the course
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Lecture 1, November 7: Introduction to the Course; Background
Lecture 2, November 11: Models with Spatial Separation (T)
Lecture 3, November 14: OLG Model (Ch.1 CF); Inflation (Ch. 3)
Lecture 4, November 18: Homework 1, Capital (Ch. 6); Intermediation (Ch.7)
Lecture 5, November 21: Central Bank (Ch.8); Money Fluctuations (Ch. 9)
Lecture 6, November 25: Homework 2; Bank Runs (Ch. 12)
Lecture 7, November 28: Search Model, Basics (W)
Lecture 8, December 2: Homework 3; Search Model, Advances (LW)
Lecture 9, December 5: Midterm
Lecture10, December 9: Midterm Solutions, Search Model, Exercises
Lecture 11, December 12: Presentations
Lecture 12, December 16: Presentations
Grades
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3 homeworks, 1 midterm, 1 presentation, 1
final exam
Homeworks: assigned a week in advance; to
be handed-in at the beginning of lecture
Midterm: December 5
Each homework worth 10% of final grade;
Midterm 20%; Presentation 20%; Final exam
30%.