Monetary Economics

This information is for the 2013/14 session.

Teacher responsible

Dr Pontus Rendahl, room TBC


This course is available on the MPA in European Public and Economic Policy, MPA in International Development, MPA in Public Policy and Management, MPA in Public and Economic Policy, MPA in Public and Social Policy, MSc in Econometrics and Mathematical Economics, MSc in Economics and MSc in Economics (2 Year Programme). This course is available with permission as an outside option to students on other programmes where regulations permit.


Students must have completed Introductory Course in Mathematics and Statistics (EC400).

Course content

The course aims to develop the student's ability to undertake research in monetary economics by studying a number of current issues both theoretical and applied. We discuss alternative frameworks to examine the interaction between money, liquidity, public policy and the aggregate economic activity. Those approaches include reduced form approaches of money-in-utility, cash-in-advance, overlapping generations and dynamic sticky price models. We also discuss more structural approaches to examine the implications of underlying frictions - such as private information, limited contract enforcement and limited market participation - for the allocation and rationale for policy interventions. The substantive issues to be addressed include determination of inflation, optimal inflation rate, interaction between fiscal and monetary policy, transmission of monetary policy, financial crisis and business cycle.


20 hours of lectures and 8 hours of seminars in the MT. 20 hours of lectures and 10 hours of seminars in the LT. 2 hours of seminars in the ST.

There will be both some essays and, probably, a mock examination at the beginning of the LT. This will not count towards the final examination results.

Indicative reading

A reading list will be handed out by the lecturers at the beginning of their sessions.


Exam (50%, duration: 3 hours) in the main exam period.
Essay (50%, 6000 words) in the ST.

Key facts

Department: Economics

Total students 2012/13: 32

Average class size 2012/13: 16

Value: One Unit

Guidelines for interpreting course guide information