Olivier Loisel’s website	Monetary economics
Welcome Papers Research papers Policy papers Courses On financial economics On macroeconomics On monetary economics Others Curriculum vitae Contact information	18-hour master-level course taught in English at ENSAE Paris and the Master in Economics of the Institut Polytechnique de Paris Description This course studies conventional and unconventional monetary policies in the New Keynesian framework, from the basic New Keynesian model to an extended New Keynesian model with financial frictions. It derives the main implications of these models for optimal monetary policy in normal times and in crisis times, highlighting in particular the importance of private agents’ expectations in the transmission and the conduct of monetary policy, and providing illustrations taken from the practice of various central banks. General introduction Part I: Conventional monetary policy Chapter 1: The basic New Keynesian model Chapter 2: Optimal monetary policy Chapter 3: Monetary-policy design Part II: Unconventional monetary policy Chapter 4: Forward guidance Chapter 5: Quantitative vs. credit easing General conclusion Extensions Extension 1: The sticky-wages extension Extension 2: The small-open-economy extension Main references Galí, J., 2015, “Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian Framework and its Applications,” second edition, Princeton University Press Woodford, M., 2003, “Interest and Prices: Foundations of a Theory of Monetary Policy,” Princeton University Press Complete references Last exams 2023-2024 exam 2022-2023 exam 2021-2022 exam