Monetary Economics Leo Ferraris Office: 40, 2nd floor; office hour: by appointment Email: leo.ferraris@uniroma2.it University of Rome, Tor Vergata November/December 2016

The Course Introduction to theory of money: store of value medium of exchange Three models: Models with Spatial Separation (T) Overlapping Generations (OLG) Search Model (Kiyotaki-Wright)

Material Champ, B. & S. Freeman (2001), Modeling Monetary Economics, CUP (CF) Townsend, R. (1980), Models of Money with Spatially Separated Agents, in Models of Monetary Economies, OUP (T) Wallace, N. (1997), Absence of Double Coincidence Models of Money, MinnFed (W) Lagos, R. & R. Wright (2005), A Unified Framework for Monetary Theory and Policy, JPE (LW)

Lectures 12 lectures, 3 h; first meeting 7th November Monday 10am-1pm; Friday 2-5pm Room P10

Road Map The following list of topics is suggestive and may be modified during the course Lecture 1, November 7: Introduction to the Course; Background Lecture 2, November 11: Models with Spatial Separation (T) Lecture 3, November 14: OLG Model (Ch.1 CF); Inflation (Ch. 3) Lecture 4, November 18: Homework 1, Capital (Ch. 6); Intermediation (Ch.7) Lecture 5, November 21: Central Bank (Ch.8); Money Fluctuations (Ch. 9) Lecture 6, November 25: Homework 2; Bank Runs (Ch. 12) Lecture 7, November 28: Search Model, Basics (W) Lecture 8, December 2: Homework 3; Search Model, Advances (LW) Lecture 9, December 5: Midterm Lecture10, December 9: Midterm Solutions, Search Model, Exercises Lecture 11, December 12: Presentations Lecture 12, December 16: Presentations

Grades 3 homeworks, 1 midterm, 1 presentation, 1 final exam Homeworks: assigned a week in advance; to be handed-in at the beginning of lecture Midterm: December 5 Each homework worth 10% of final grade; Midterm 20%; Presentation 20%; Final exam 30%.