Introduction to liquidity trap economics
SUMMER TERM 2017
Blocked MSc-Course at LMU consisting of lectures and student presentations
Lecturer : Dr. Sebastian Watzka
Lectures: from 03.04.17 until 07.04.17, 10:00 - 12:00 AM, Main Building B 011
Tutorials for Student Presentations: Saturday, 13 May 2017, 10.00 AM - 17:00 PM; Main Building B 011
1. Introduction (Motivation, liquidity trap in the General Theory, recent developments in industrialised economies)
2. Liquidity Trap in modern style New Keynesian DSGE models
3. Computational issues and empirical testing
Introducing students to recent developments in monetary economics, and in particular to issues related to liquidity trap and implications for monetary and fiscal policies.
Selected topics: Liquidity trap, Zero Lower Bound, unconventional monetary policy, inflation expectations, depression economics
- David Romer, Short-Run Fluctuations, Manuscript University of California, Berkeley, in particular Chapter IV, http://eml.berkeley.edu/~dromer/papers/Romer%20Short-Run%20Fluctuations%20January%202012.pdf
- PLUS course reading list in separate pdf
IMPORTANT NOTICE: Please note that students (i) will be required to submit a seminar paper (Hausarbeit) and (ii) to give a short presentation (possibly in groups) on Saturday, 13 May 2017. The modalities for the seminar paper and the presentations will be given in the lectures.