Economics 522, Spring 2007 | Princeton University
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Courses 2006-2007: 504 522 554 | Blackboard | Calendars | Students | Graduate Program
Advanced Macroeconomics II, Part 1
This is the first half of a second-year one-semester graduate course in the Graduate Program, Department of Economics, Princeton University.
Part 1 is taught
by Lars Svensson. Part 2 will be taught
by Nobu Kiyotaki.
Announcements regarding part 1 of the course will be made on this page, and the page will be frequently updated. (Course plan and readings are preliminary and will be updated until the end of classes.) Students are required to check the page regularly.
March 13: Lecture notes for Blinder's presentation posted.
On part of the class on March 13, Alan Blinder will present his paper Blinder (2006) (see readings under topic 8, "Current issues in monetary policy").
On part of the class on February 27, Ricardo Reis will present his work on monetary policy in inattentive economies (see readings under topic 4, "Monetary policy in inattentive economies").
Teacher: Lars Svensson,
Office: 106 Fisher Hall, Tel: 258-0329, Email: svensson@princeton.edu.
Office hours: By appointment.
Administrative assistant: Kathleen Hurley, Office: 107
Fisher Hall, Tel: 258 4023, Email:
kahurley@princeton.edu.
Class schedule: Tuesday, 1:00-4:00 pm, B-06 Fisher Hall.
Part 1 starts Feb 6 and ends Mar 13.
Part 2 starts Mar 27 and ends May 1.
Final exam for 522 and general macro exam (521 and 522): T.b.a.
Prerequisites: Students are expected to be familiar with the material in Economics 521, Macroeconomics I.
Topics: (preliminary)
Slides: Copies of slides or notes will be available before each class on this page, as pdf files. Students are expected to download and print these before each class.
Notice: These slides are not self-contained but incomplete. They are not a substitute for coming to class. In particular, the slides are simplified and sometimes provocative. They should therefore not be interpreted as definitive statements. The slides should never be quoted without my permission.
Lecture notes 1
Lecture notes 2
Orphanides 2003b Figure 2
Lecture notes 3
Lecture notes 4
Lecture notes Reis
Lecture notes 5
Lecture notes 6
Lecture notes 7
Lecture notes Blinder
Readings and course plan (preliminary)
1. Linear-quadratic optimization with forward-looking variables: Sequential and recursive methods
Anderson (2005)
Anderson, Hansen, McGrattan, and Sargent (1995)
Dennis (2005)
Golub and van Loan (1989)
Harville (1997)
King and Watson (1998, 2002)
*Klein (2000)
*Ljungqvist and Sargent (2004, Ch. 5)
Marcet and Marimon (1998)
McCallum (1998)
McCallum (2005)
Messner and Pavoni (2004)
*Söderlind (1999)
Sims (2000)
Svensson (2005a)
*Svensson (2007a)
Van Loan (2000)
2. Optimal policy under partial information
Dotsey and Hornstein (2003)
*Ehrmann and Smets (2003)
Gerali and Lippi (2006)
Coenen, Levin, and Wieland
(2005)
Hamilton (1994)
Harvey (1981, 1989)
*Ljungqvist and Sargent (2004, Sect. 5.6, App. B)
Orphanides (2003a,b)
*Svensson and Woodford (2003)
Svensson and Woodford (2004)
Swanson (2004)
3. Optimal policy under model uncertainty
Blake and Zampolli (2006)
Brainard (1967)
Chow (1975)
Costa, Fragoso, and Marques (2005)
Farmer, Waggoner, and Zha (2006a,b)
Miranda and Fackler (2002, Ch. 6.8, 8, 9)
*Onatski and Williams (2003)
*Söderström (2002)
*Svensson (1999b, 2007b)
*Svensson and Williams (2007, DFT)
*Svensson and Williams (2006, BOP)
Zampolli (2006)
4. Monetary policy for inattentive economies
*Ball, Mankiw, and Reis (2005)
*Mankiw and Reis (2002)
Mankiw and Reis (2007)
Reis (2006)
5. Commitment, discretion, and optimal delegation in monetary policy
Abreu, Pearce, and Stacchetti (1990)
Athey, Atkeson, and Kehoe (2005)
Blinder (1998, chap. 2, sec. 4)
Chang (1998)
Clarida, Gali and Gertler (1999)
Kydland and Prescott (1977)
McCallum and Nelson (2000)
Persson, Persson, and Svensson (2006)
Söderlind (1999)
Svensson (1997b)
Walsh (2003, chap. 8)
Woodford (2003, chap. 7)
7. Transparency
Angeletos and Pavan (2005)
Bergo (2007)
Blinder and Wyplosz (2004)
Geraats (2002)
Gosselin, Lotz, and Wyplosz
(2006)
Govil (2006)
Lomax (2007)
*Morris and Shin (2002)
Norges Bank (2005, 2006)
Rosenberg (2007)
Rudebusch
and Williams (2006)
Svensson (2006a)
*Svensson (2006b)
Walsh (2007)
*Woodford (2006, p.
399-421, 439-460)
8. Current issues in monetary policy
Bergo (2007)
*Blinder (2006)
Lomax (2007)
Rosenberg (2007)
Svensson (2006a)
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Zampolli, Fabrizio (2006), "Optimal Monetary Policy in a Regime-Switching
Economy: The Response to Abrupt Shifts in Exchange-Rate Dynamics," Working Paper
No. 297, Bank of England.
Errors: Please email me about errors, for instance in the reading list and URLs.
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