This seminar is designed to help participants to develop the ability to build, operate and interpret monetary policy models and conduct policy analyses using these models. The seminar will start by setting up workhorse quantitative macroeconomic models from the basics. Later, benchmark New Keynesian models, their potential limitations, and recent modelling advances will be presented to provide a framework to address issues directly relevant for monetary and macroprudential policies. The seminar will include computer-based applications (calibration, simulation and forecasting exercises) for each family of models.
• Basics of real and monetary business cycle models
• Basic New Keynesian models
• Open economy New Keynesian models
• Monetary policy models with financial market imperfections
• Monetary policy models, macroprudential policy and the banking sector
• Policy experiments using monetary policy models