Economics 374 - Monetary Theory and Policy Analysis
Dr. John F. Olson email: jolson@csbsju.edu
Spring 2016 Course Syllabus
Unit One - The Economic Nature and Role of Money
Assigned hand-out of Introductory Class Notes
Assigned article, "The Uses of Money: Money in Theory of an Exchange Economy" by Brunner & Meltzer (reading instructions given in class)
Assigned hand-out on Current Measures of the Money Stock
Assigned "Performance Evaluation of H.6 Statistical Release Money Stock Measures” at http://www.federalreserve.gov/releases/h6/perfeval2015.htm
Article on discontinued M3 measure: "Goodbye to M3" from St. Louis FRB, Monetary Trends, April 2006.
Assigned article about data revisions, forecasting, and policy-making: "Through a Glass, Darkly: How Data Revisions Complicate Monetary Policy" from Dallas FRB, Economic Letter, Vol. 1, No. 12, December 2006.
Data spreadsheets & charts:
1959-2014 money stock measures - monthly
1959-2013/2014 U.S. money & macro-economy - quarterly & annual
Friedman & Schwartz U.S. historical monetary data
Unit Two - The Demand for Money
Assigned selected excerpts from chapter 3 of McCallum's Monetary Economics on the shopping-time and Baumol-Tobin models of money demand
Article about cash and new payments mechanisms: "Are Consumers Cashing Out" from Cleveland FRB, Economic Commentary, Oct. 1, 2007. PDF version
Data Sets for estimating money demand
The estimating equations for the money demand function Unit Three - The Money Supply Process Assigned hand-out on the Money Supply Process
Assigned article
Assigned article
"Excess
Reserves: Oceans of Cash" from Cleveland FRB,
Economic Commentary, February 12, 2015
Links to assigned Federal Reserve's web-page
http://www.federalreserve.gov/monetarypolicy.htm
Policy Making:
the Federal Open Market Committee
Policy Tools descriptions:
Open Market Operations
the Discount Rate
Reserve Requirements
See also the descriptions of (& the supporting materials for) the temporary facilities for additional lending/liquidity:
"New Monetary Policy Tools?"
from St. Louis FRB, Monetary Trends, May 2008
has a good summary of the three facilities.
See also from Unit Five (below), the
Assigned article
“More Money:
Understanding Recent Changes in the Monetary Base” by William T. Gavin,
Unit Four - Money and Economic Activity
For the review of the long-run neo-classical macroeconomic model, these notes and accompanying spreadsheet from my ECON 333 course may be helpful.
As well, for the review of the short-run Keynesian-Cross and IS-LM models, here are the equations and accompanying spreadsheet.
Unit Five - Monetary Policy
Re-read the
assigned Federal Reserve Monetary Policy descriptions (see Unit Three above)
Also assigned: "U.S. Monetary Policy: an introduction -" (San Francisco, Economics Letter,
January/February 2004)
Part 1: How is the Fed structured and what are its policy tools?
Part 2: What are the goals of U.S. monetary policy?
Part 3: How does monetary policy affect the U.S. economy?
Part 4: How does the Fed decide the appropriate setting for the policy
instrument?
Article "A Brief History of Central Banks" from Cleveland FRB, Economic Commentary, December 2007. PDF version
Article: "Operating Procedures for Conducting Monetary Policy" by R. Alton Gilbert in the St. Louis FRB Economic Review, Feb. 1985.
Here are a simple explanation of the Taylor rule and an excerpt by Taylor explaining his reasons for such a monetary policy rule.
Here is Louis Johnston's MNPost piece (January 6, 2015) about Narayana Kocherlakota, former president of the Federal Reserve Bank of Minneapolis, and monetary policy rules vs. discretion.
A set of interesting articles, views and reflections from a St. Louis FRB conference: "Reflections on Monetary Policy 25 Years After October 1979", Economic Review, March/April 2005 (Vol. 87, No. 2, Part 2).
Some interesting pieces on monetary policy in recent past periods:
"The Phases of U.S. Monetary Policy: 1987 to 2001" (Richmond, Economic Quarterly, Fall 2002)
"A Perspective on Monetary Policy" (Cleveland, Economic Commentary, Feb. 1, 2005)
Links to some additional readings from FRBs' publications: Links to Federal Reserve System sites Links to key U.S. economic reports (GDP & NIPAs at the BEA, CPI and labor data at BLS)
Links to the NBER Syllabi and Test Study Guides from earlier years: Spring 2015 Course Syllabus Fall 2012 Course Syllabus Fall 2010 Course Syllabus Study Guides:
Test #1
Test #2
Test #3 Fall 2009 Course Syllabus Study Guides:
Test#1
Test #2
Test #3 Spring 2008 Course Syllabus
Revised Schedule Study Guides:
Test #1
Test #2
Test #3 Spring 2007 Course Syllabus Study Guides:
Test #1
Test #2
Test #3 Spring 2005 Course Syllabus Study Guides:
Test #1
Test #2
Test #3 Spring 2004 Course Syllabus Study Guides:
Test #1
Test #2
Test #3 Spring 2003 Course Syllabus
"The Trime"
from Cleveland, Economic Commentary, January 15, 2004
"The Fate of One-Dollar Coins in the U.S." from Cleveland, Economic Commentary, Oct. 15, 2004
"U.S. Currency at Home and Abroad" from St. Louis, Monetary Trends, March 2007
"Budget Deficits and Interest Rates" from St. Louis, Monetary Trends, March 2004
"Hayek - Social Theorist of the Century" from Dallas, Economic Insights, vol. 4 (1999), no. 1
"Ludwig von Mises" from Dallas, Economic Insights, vol. 6 (2001), no. 4
"Adam Smith - Capitalism's Prophet" from Dallas, Economic Insights, vol. 7 (2002), no. 1
"Milton Friedman - Economist as Public Intellectual" from Dallas, Economic Insights, vol. 7 (2002), no. 2
"Milton Friedman, Teacher, 1912-2006" from Cleveland, Economic Commentary, December 2006
"Frank H. Knight - Origins of the Chicago School of Economics" from Dallas, Economic Insights, vol. 7 (2002), no. 3
"Irving Fisher: Origins of Modern Central Bank Policy" from Dallas, Economic Insights, vol. 10 (2005), no. 1
"Knut Wicksell: The Birth of Modern Monetary Policy" from Dallas, Economic Insights, vol. 9 (2004), no. 1
"Wicksell's Natural Rate" from St. Louis, Monetary Trends, March 2005
"Paul Samuelson and Monetary Analysis" from St. Louis, Monetary Trends, April 2005
"Monetary Explanations of the Great Depression: A Selective Survey of Empirical Evidence" from Atlanta, Economic Review, 3rd quarter, 2004
"October 6, 1979" from San Francisco, Economics Letter, December 3, 2004
direct link to Fed-in-Print at
http://www.fedinprint.org/
business cycles
data and the
Macro History Database
CSB/SJU Economics Department Homepage: http://www.csbsju.edu/economics/
page last up-dated 1/12/2016 - please report any "dead" hyperlinks to jolson@csbsju.edu