Monetary and Fiscal Policy Study Group
Contents:
Contact Person
Purpose
Meetings
Next Meeting ...
Reading List
Organizer:
Rigot, Office R6
Tel: 022 908 59 21
To study the modeling framework for open economy monetary and fiscal policy, and to become acquainted with new research (theoretical and empirical) in this field. A member of the group presents and derives an item from the reading list agreed on in advance at each meeting. Everyone attending the meeting reads the item in advance.
Participants:
Ahmet, Alessandro, Andrea, Cinzia, Ghislaine, Laurent, Signe, (Hans?)
| Date and Time | Leading the discussion | Topics | Readings |
| June 29, 2pm | Sébastien Wälti | Sebastien started the derivation of the Gali closed economy monetary modeling framework. What we did: 1) Review of key empirical facts. 2) Baseline framework for analysis: utility maximization and demand, and firm behavior. 3) Equilibrium with flexible prices as benchmark analysis. |
*Gali (2002): Section 1, 2:1 – 2:4
Woodford CH 1. (Will not be discussed by Sebastien directly)
Extra copies
of Sebastien's handwritten "Lecture Notes"
|
| 20 July, 2pm | Sébastien Wälti | Sebastien finished the derivation of the closed economy Gali stuff, discussion of optimal monetary policy, and the Rules versus Discretion debate (we did the discretion case). The session was based on the same handout as last time. There are still extra copies in Signe's office. | *Gali (2002) Section 5 *Clarida, Gali and Gertler (1999), whole paper. |
| 22 September 2004, 14:15 | Signe Krogstrup | A few technical issues in Sébastien's derivation of the clarida gali gertler model were discussed, and Signe went over some overall issues of the small open economy version of this model (e.g. brute force derivation of the NKPC, role of the TOT in open econ models, based on Gali and Monacelli (2003). Signe's notes (derivation of Gali and Monacelli, 2003) are available per email upon request. | *Sebastien's Notes *Gali and Monacelli (2003)
|
| Alessandro Flamini | There will be a brief discussion of the Obstfeld Rogoff (1995) paper, in particular its main assumptions and contribution in terms of methodology. The main focus of the session however will be on the model presented in Corsetti and Pensenti (2001). Assumptions, results and methodology will be highlighted. The two abovementioned papers share the methodology in modelling sticky prices, but the latter is more attached to the recent literature. |
*Obstfeld and Rogoff (1995) *Corsetti and Pesenti (2001) (link below) |
|
| 7th Dec, 18:00 in R3 | Andrea and Cinzia | Optimal Fiscal Policy in a Monetary Union. Working paper by Gali and Monacelli (2004). | *Gali and Monacelli (2004) |
13th Jan, 16:00 in R3 |
Signe | Heterogenous Firms and Macroeconomic Dynamics: The Harrod Balassa-Samuelson Effect endogenized.. | *Melitz and Ghironi (2004) |
| TBA | Cinzia | TBA | |
Reading
/ Topic List (tentative, send me your comments):
The “Gali” Framework:
Closed economy:
Open Economy
Redux :
Other:
Seminal Papers??
New Research ????
Laurent, you have references for this topic?