Monetary policy and financial markets 2400-ENSM084B

EXPERTISE:
Upon the seminar completion a student:
- understands the objectives and real effects of monetary policy
- knows monetary policy strategies and central bank’s policy during and after the financial crisis
- is able to analyze the relation between fiscal and monetary policy
-understands the importance of access to financial services
- is able to analyze the role of financial market in dampening cyclical output fluctuations and spurring long-term growth

SKILLS:
Upon the seminar completion a student
- is able to posit hypothesis and verify them
- is able to prepare an undergraduate thesis
- is able to handle the databases of the World Bank, International Monetary Fund, Bank for International Settlements.

SOCIAL SKILLS:
Student
- is able to develop strategies for effective time, task management and work planning
- is able to combine and use multiple sources of information to deepen the knowledge about the role of financial market

The progress in the preparation of the thesis is the sole assessment criterion. During the fall semester students, assisted by the supervisor, select the topic of the thesis, prepare a detailed plan of the thesis and a preliminary version of the thesis. During the spring semester students conduct their own research project and complete the thesis.
To pass the second semester, students have to submit the complete theses.

Aisen, A. and M. Franken (2010), “Bank Credit during the 2008 Financial Crisis: A Cross-Country Comparison”, IMF Working Paper 1047.
Aizenman J, B Pinto and V l Sushko (2013), “Financial sector ups and downs and the real sector in the open economy: Up by the stairs, down by the parachute”, Emerging Markets Review 16, 1–30.
Amiti, M and D E Weinstein (2018), “How Much Do Idiosycratic Bank Shocks Affect Investment? Evidence from Matched Bank-Firm Loan Data”, Journal of Political Economy 126(2), 525-587.
Bernanke, B S and M Gertler (1989), “Agency Costs, Net Worth, and Business Fluctuations”, American Economic Review, 79(1): 14–31.
Bodea, C. and Higashijima, M. (2017), “Central bank independence and fiscal policy: Can the central bank restrain deficit spending?”, British Journal of Political Science 47(1), 47-70.
Bordo, M.D. and Siklos, P.L. (2017) “Central bank credibility before and after the crisis”, Open Economies Review 28(1), 19-45.
De Haan, J., Bodea, C., Hicks, R., and Eijffinger, S.C.W. (2018) “Central bank independence before and after the crisis”, Comparative Economic Studies 60(2), 183-202.
Fratzscher, M., Lo Duca, M., and Straub, R. (2016) “ECB unconventional monetary policy: Market impact and international spillovers”, IMF Economic Review 64(1), 36-74.
Khwaja, A I and A Mian (2008), “Tracing the Impact of Bank Liquidity Shocks: Evidence from an Emerging Market”, American Economic Review, 98(4): 1413–1442.
Marmefelt, T. (2020) COVID-19 and EconomicPolicy Toward the New Normal:A Monetary-Fiscal Nexus after the Crisis?, Publication for the Committee on Economic and Monetary Affairs, Policy Department for Economic, Scientific and Quality of Life Policies, European Parliament, https://www.europarl.europa.eu/RegData/etudes/IDAN/2020/658193/IPOL_IDA(2020)658193_EN.pdf.
Philippon, T, and A Reshef. (2013). “An international look at the growth of modern finance”, The Journal of Economic Perspectives 27 (2): 73-96.
Ramey, V A (1993), “How Important is the Credit Channel in the Transmission of Monetary Policy?”, Carnegie-Rochester Conference Series on Public Policy, 39: 1–45.
Weber, C.S. (2018) „Central bank transparency and inflation (volatility) – new evidence”, International Economics and Economic Policy 15(1), 21-67.
Valickova, P., Havranek, T., and Horvath, R. (2015) “Financial development and economic growth: A meta-analysis”, Journal of Economic Surveys 29(3), 506-526.

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• Description of 2400-ENSM084B in USOSweb