Courses Exchange Display 2018-2019

Course Description To PDF
Course title ECB and Monetary Policy
Course code EBC4023
ECTS credits 6,5
Assessment Whole/Half Grades
Period Start End Mon Tue Wed Thu Fri
1 3-9-2018 26-10-2018 X X
Level Advanced
Coordinator Clemens Kool
For more information:
Language of instruction English
* To understand and apply the workhorse (3-equation) model for macroeconomic analysis in a closed economy
* To understand the role of expectations in modern macroeconomics and monetary policy
* To understand the role of the banking sector in the interaction between the monetary policy and the real economy
* To understand and analyse causes and consequences of financial crises
* To understand and discuss the relevance of the institutional design of the central bank
* To understand and discuss the effectiveness of monetary policy in the short run and the long run
The 2008 financial crisis and the subsequent Great Recession have put monetary policy once again in the spot lights. On the one hand central banks are blamed for creating the crisis, on the other hand they are relied on to provide a way out of economic stagnation. Even almost 10 years later, we are still facing extreme monetary conditions. Interest rates are at the zero lower bound and central banks struggle with the question of how long to continue unconventional monetary policies and when and how to reverse these.
This course aims at deepening students’ knowledge of the relation between monetary and real phenomena in an economy, to facilitate a thorough analysis of the role of (ECB) monetary policy. In particular, we focus on
* the role of money in the economy and the effectiveness of monetary policy in the short run and the long run,
* the relation between money and credit and the role of commercial banks and the central bank in their creation
* the transmission channels from monetary policy to the real economy under various conditions, and the role of the banking sector in the transmission- the causes and consequences of financial crises
* the distinction between the goals and implementation of monetary policy (macroeconomic stability) and macro-prudential policy (financial stability)
* the optimal design of monetary policy (independence, transparency and accountability; rules vs discretion; reputation and credibility),
* the actual position and policies of the European Central Bank (including a visit)
* W. Carlin and D. Soskice, Macroeconomics: Institutions, Instability and the Financial System, 3rd edition, 2014, Oxford University Press, selected chapters.
* Selected articles.
Second-year macro-economics (BSC; level book Blanchard Et Al ''Macroeconomics: A European Perspective'').
Exchange students need to have obtained a Bachelor degree with a major in Economics or Ecmonetrics.
Teaching methods PBL / Presentation / Lecture / Papers / Groupwork
Assessment methods Final Paper / Participation / Written Exam
Evaluation in previous academic year For the complete evaluation of this course please click "here"
This course belongs to the following programmes / specialisations
Master Econometrics and Operations Research Free Electives
Master Financial Economics Asset Pricing
Master Financial Economics Banking
Master Financial Economics Financial Analysis
Master Fiscal Economics Economics Electives
SBE Exchange Master Master Exchange Courses
SBE Non Degree Courses Master Courses