Monetary Economics (2nd year Ph.D. course, Uppsala University and the Riksbank) (joint with Nils Gottfries and Johan Söderberg at Uppsala University, and Ulf Söderström and Andreas Westermark at the Riksbank)
Lecture on Practical Monetary Policy by Lars Svensson on Wednesday, May 18, 14:15-17, Room 10:027.
The main reading for this lecture is Svensson (2011a). There will also be some discussion of issues raised in Svensson (2011a) and Ingves (2011). I will not get into any detail about the relation between monetary policy and stability, but anyone interested in that may want to check out Svensson (2010b) and the references there.
Students not familiar with the Riksbank minutes and other material from the monetary policy meetings may want to check out Sveriges Riksbank (2011b).
Lecture notes (preliminary)
Readings: (* denotes required reading)
Adolfson, Malin, Stefan Laséen, Jesper Lindé, and Lars E.O. Svensson (2011), “Optimal Monetary Policy in an Operational Medium-Sized DSGE Model,”Journal of Money, Credit and Banking, forthcoming. PDF.
Laséen, Stefan, och Lars E.O. Svensson (2011), “Anticipated Alternative Instrument-Rate Paths in Policy Simulations,” forthcoming in International Journal of Central Banking. PDF.
Svensson, Lars E.O. (2003), “Optimal Policy with Low-Probability Extreme Events,” in Macroeconomics, Monetary Policy, and Financial Stability – A Festschrift for Charles Freedman, Proceedings of a conference held by the Bank of Canada, Ottawa, June 2003, 79-104. PDF.
Svensson, Lars E.O. (2010b), “Inflation Targeting and Financial Stability,” Policy lecture at the CEPR/ESI 14th Annual Conference on “How Has Our View of Central Banking Changed with the Recent Financial Crisis?”, hosted by the Central Bank of Turkey, Izmir, October 28, 2010. English.
*Svensson, Lars E.O. (2011b), “Inflation Targeting,” chapter 22 in Friedman, Benjamin M., and Michael Woodford, eds., Handbook of Monetary Economics, Volume 3b, Elsevier. English.
Woodford, Michael (2007), “The Case for Forecast Targeting as a Monetary Policy Strategy,” Journal of Economic Perspectives 21(4), 3-24.