JEB124 - Global Financial Crisis
|Status:||Bachelors - All
Bachelors - elective
BEF - elective
Masters - all
MEF - elective
Semester - winter
|Obligatory courses:||JEB010 - Macroeconomics II
|Course supervisors:|| Dr Jan Libich
|Assistants:|| PhDr. Ihor Kruchynenko
|Schedule:||Room 105 Thursday Nov 15, 12:30 - 13:50 h: Lecture Monday Nov 19, 14-15.20 h: Lecture Tuesday Nov 20, 8-9.20 h: Lecture Monday Nov 26, 14-15.20 hod: Seminar Tuesday Nov 27, 8-9.20 hod: Lecture Monday Dec 3, 12:30-15.20 hod: Writing exam|
|Announcements:||Please note Lecture 2, Assignment 2 and paper for Assignment 2 are now posted below in the attachment.|
|Literature:||Bank of England (1999), ‘The Transmission Mechanism of Monetary Policy’, available at
*Carlin, W and Soskice, D. (2005), ‘The 3-Equation New Keynesian Model – A Graphical Exposition’, Contributions to Macroeconomics, Volume 5, Issue 1 (it will be posted on LMS)
Friedman, M. (1968), ‘The Role of Monetary Policy’, American Economic Review 58 (1): pp1–17
Jarvis (2009), ‘The Crisis of Credit Visualized’, video available at www.crisisofcredit.com.
*Kotlikoff, L. (2006), “Is the United States Bankrupt?’, Federal Reserve Bank of St. Louis Review, July/August, 88(4), pp 235-49.
*Libich (2012), Video-interviews with academics and policymakers at www.youtube.com/user/JanLibich1. Most importantly interviews with Prof Warwick McKibbin (ex-Reserve Bank of Australia board member) on the global financial crisis (forthcoming Nov 2012); Dr Don Brash (ex-Governor of the Reserve Bank of New Zealand) and Prof Eric Leeper (Indiana University) – both on monetary-fiscal interactions
Libich, J., Stehlík P. and Savage, J. (2010), ‘Fiscal Neglect in a Monetary Union’, Economic Papers, 29(3), pp301-309 (non-technical)
Libich, J., Nguyen, D., and Stehlík P. (2012), ‘Monetary Exit Strategy and Fiscal Spillovers’, CAMA WP 4/2011, revise/resubmit at the Journal of Money, Credit, and Banking
MoPoS (2012), Monetary policy simulation game, various online version are available at www.iconomix.ch/en/resources/m04.
Rose, C. and Goll, L. (1992), Accelerate Your Learning: The Action Handbook, Surrey, Unwin Bros Ltd
Taylor, J. (2011), ‘An Empirical Analysis of the Revival of Fiscal Activism in the 2000s’, Journal of Economic Literature, 49(3), pp 686-702: www.stanford.edu/~johntayl/JEL_Taylor_Final%20Pages.pdf.
The Bailout Game, available at: www.thebailoutgame.
The Federal Reserve of St. Louis (2012), The Financial Crisis: A Timeline of Events and Policy Actions, available at: http://timeline.stlouisfed.org/index.cfm?p=timeline.
|Description:||In this short course, students will get a better understanding of the global financial crisis (GFC) of 2008 and its aftermath. We will discuss the causes of the crisis, its propagation, the macroeconomic and regulatory responses of policymakers, and the observed macroeconomic outcomes. To do so effectively the course will provide a brief refresher of the key macroeconomic relationships using a simple three equation model (of the sort that most central bankers use to think through the intuition of how the macro economy works). Students will practice solving the model and depicting graphically policy responses to various shocks. We will also discuss the main lessons from the crisis, and whether or not they have been learnt.|
|Content:||Course will be taught by Dr. Jan Libich for bachelors 3rd year + MEF students|
|Seminar:||For details see the Course Guidelines below|
|Examination dates:||Monday Dec 3, 12:30-15.20 hod: Writing exam|
|Course requirements:||In order to ensure the right incentives on your part each assessment has a hurdle. You need to score at least 40% from each tutorial assignment (i.e. 8 marks each), and at least 40% of the exam (i.e. 24 marks).|
Assignment 1 - Solutions
Assignment 2 - Solutions
Global Financial Crisis - Course Guidelines
Grades (incl 2 assignment)