Monetary Policy and Business Cycles (expired)

ECS567 Monetary Policy and Business Cycles (expired)

Spring 2021

  • Topics

    This course aims to provide students with a strong understanding of Monetary Policy and Business Cycles. The reading group complements the BI course DRE 7028 Monetary Economics by Prof. Larry Christiano given intensively, and adds to their competence in macroeconomics. The students will read papers and give a presentation on a selected research paper and term paper.

    The course will cover the following topics:

    1) Tech Shocks, Nominal Rigidities and Business Cycles

    2) Financial Accelerator and Credit Cycles

    3) Housing Markets and Business Cycles

    4) ZLB and Monetary Policy

  • Learning outcome


    At the end of the course students will acquire;

    • knowledge on key papers in Monetary Policy and Business Cycles, and relate them to the literature


    At the end of the course students will be able to;

    • analyze key papers and apply theories in monetary policy


    General Competence:

    At the end of the course students will be able to;

    • critically discuss  articles in monetary policy and communicate their findings in a clear manner

  • Teaching

    Students will critically discuss papers and give a short presentation to the group. The reading group will meet in three sessions (2x45) in the spring semester.

  • Restricted access

    The candidate must have completed the BI course DRE 7028 Monetary Economics

  • Requirements for course approval

    • Active participation in reading group
    • Individual written term paper

  • Assessment

    Individual presentation of a research paper.

    Duration: 30 min.

  • Grading Scale


  • Computer tools

    Presentation tools: Powerpoint, Beamer (TeX), etc.

  • Literature

    Bils, Mark and Pete Klenow (2004). "Some Evidence on the Importance of Sticky Prices". JPE 112(5): 947-985.  

    Gali, Jordi (1999), Technology, Employment, and the Business Cycle: Do technology Shocks Explain Aggregate Fluctuations? AER 89(1): 249-271. 

    Mankiw, N. Gregory, and Ricardo Reis, "A Proposal to Replace the New Keynesian Phillips Curve," Quarterly Journal of Economics, 117 (2002), 1295-1328.

    Bernanke and Gertler (1983), Agency Costs, Net Worth, and Business Fluctuations. AER 79(1):14-31. 

    Brunnermeier, Markus K., and Yuliy Sannikov (2014), "A Macroeconomic Model with a Financial Sector". American Economic Review 104(2): 379-421.

    Kiyotaki, Nobuhiro, and John Moore. (1997). "Credit Cycles." Journal of Political Economy 105 (2): 211-48.

    Iacoviello, Matteo (2005). House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle, AER 95(3): 739-764.

    Mian, Atif and Amir Sufi (2014), What Explains the 2007-2009 Drop in Employment? Econometrica 82(6), 2197-2223.

    Gertler, Mark, and Peter Karadi. 2011. "A Model of Unconventional Monetary Policy." Journal of Monetary Economics 58(1): 17-34. 

    Eggertsson, G., Woodford, M., (2003). The zero lower bound on interest rates and optimal monetary policy, Brookings Papers on Economic Activity 1: 139-211.


ECTS Credits
Teaching language

Spring. Expired.

Course responsible

Professor Gernot Doppelhofer, Department of Economics