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2019/2020  KAN-COECV3008U  Monetary Policy

English Title
Monetary Policy

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Advanced Economics and Finance
Course coordinator
  • Mauricio Prado - Department of Economics (ECON)
Main academic disciplines
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 11-02-2019

Relevant links

Learning objectives
  • explain the different models of monetary policy and their assumptions
  • use the models presented in the course to explain the effects of different monetary policies and shocks on the economy
Course prerequisites
Please note that this course assumes students’ knowledge of calculus/optimization. It is highly desirable that students have taken a graduate-level course of macroeconomics (like Macroeconomics The Global Economy or Advanced Macroeconomics) or similar curriculum.

To sign up send a 1-page motivational letter, a 1-page CV, and a grade transcript to oecon.eco@cbs.dk before the registration deadline for elective courses. You may find the registration deadlines on my.cbs.dk ( https:/​/​studentcbs.sharepoint.com/​graduate/​pages/​registration-for-electives.aspx ).

Please also remember to sign up through the online registration.
Monetary Policy:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Aids Closed book: no aids
However, at all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player), and the student is allowed to bring simple writing and drawing utensils (non-digital). PLEASE NOTE: Students are not allowed to communicate with others during the exam.
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content, structure and pedagogical approach

The course provides an overview of models in monetary economics, with a special emphasis on New Keynesian models and their implications for monetary policy.




 - 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
 - Lessons, Extensions, New Directions

Description of the teaching methods
The course is composed of 12 weekly three-hour classes. These class activities will involve derivation and analysis of models and problem-solving exercises.
Feedback during the teaching period
Office Hours
Student workload
Preparation / exam 170 hours
Classes 36 hours
Expected literature

Jordi Gali (2015): Monetary Policy, Inflation and the Business Cycle. An Introduction to the New Keynesian Framework, Princeton University Press (Princeton, NJ), ISBN: 9780691164786.


Further recommended readings and journal articles will be posted in Learn.

Last updated on 11-02-2019