Seminar für Makroökonomie




Advanced Macroeconomics and Money

The lecture will be on Friday 11 a.m. - 2 p.m. The lecture is usually held in Room 004 EG (ground floor), Kaulbachstraße 45

But the fist lecture on 19.10.07 will be held in room 406, Schackstraße 4/IV.

Jin Cao will give the tutorial to the lecture on Monday, 3 p.m. to 5 p.m. in  room 406, Schackstraße 4. The first tutorial will be given on October 22nd 2007.

The written examination takes place on Wednesday, 20.02.08 between 10 a.m. and 12 a.m. in room 406, Schackstraße 4/IV.

Course Outline

Course Outline (PDF 40KB)

Lecture Notes

Lecture Notes 1 (PDF 160 KB)
Lecture Notes 1b (PDF 625 KB)
Lecture Notes 1.3 (PDF 277 KB)

Lecture Notes Part 2 (PDF 381 KB)


For the first weeks, please use the Tutorial Notes prepared by Jin Cao.

Problem Sets

Reading Set (Additional Reading will be provided during the course)


You are expected to read the relevant chapters of the books mentioned in lecture and class. Additional recommended reading are the following recent drafts:

Papers to read (*essential reading)

*Blanchard, Olivier J., and Nobuhiro Kiyotaki (1987)
Monopolistic Competition and the Effects of Aggregate Demand
American Economic Review 77, 647-666.

Christiano, Lawrence J./ Terry J. Fitzgerald
Understanding the Fiscal Theory of the Price Level
Economic Review 2002/2, Federal Reserve Bank of Cleveland

* Clarida, Richard, Jordi Galí, and Mark Gertler (1999)
The Science of Monetary Policy: A New Keynesian Perspective
Journal of Economic Literature, vol. 37, no. 4, 1661-1707

Cochrane, John, (2007)
Financial Markets and the Real Economy (PDF 490 KB), University of Chicago

Cukierman, Alex
Keynesian Economics, Monetary Policy and the Business Cycle - New and Old
CESifo Economic Studies Vol. 51

* Goodfriend, Marvin, and Robert G. King (1997)
The New Neoclassical Synthesis and the Role of Monetary Policy
NBER Macroeconomics Annual 1997, 231-283

* Illing, Gerhard
Mechanism Design for Central Banks - Results and Unsolved Issues (PDF 230 KB)
in: Wagner, Helmut (ed.), Current Issues in Monetary Economics, Springer Verlag, Heidelberg, 1998, 27-51

*King, Robert
The New IS-LM Model: Language, Logic, and Limits, Federal Reserve Bank of Richmond Economic (PDF 413 KB)
Quarterly Volume 86/3 Summer 2000, 45-103