ECON 162 Monetary Economics

Dynamic analysis of the role of money and monetary policy in the macro economy, using calculus. Topics: the exchange process and the role of money; inside and outside money; inflation and the inflation tax; international monetary systems; the indeterminacy of floating exchange rates; policies to fix the exchange rate and inflationary incentives; currency crises and speculative attacks; money and interest-bearing government debt; the government's budget constraint and the coordination of monetary and fiscal policies; hyperinflations and stabilizations; the effect of the national debt on consumption, savings, investment and output; time consistency of government policies. Prerequisite: 52. (not given this year)

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