|This is an advanced course that brings together topics in macroeconomics, international economics, and finance. It is designed for students who recognize that central banks are often dominant players in financial markets and are looking for a framework for understanding their actions. In the first week we go through an overview of the key issues that confront all central banks. Over the next few weeks we then show how the Federal Reserve, the Bank of Japan, and the European Central Bank resolve these issues. We contrast their approaches with those taken by central banks in other industrialized countries and in developing countries. We also study how central banks actions interact with asset markets. The class will consist of a blend of lectures, cases, and general discussion, with a heavy emphasis on current events. There will be one or two guest speakers who are prominent members of world's central banking community.
To accommodate one of the guest speakers I may also have to reschedule a class. A detailed week-by-week syllabus and answers to a set of frequently asked questions (including who the guest speakers will be and the time of any rescheduled classes) will be posted on my personal website teaching page for the course by February 1.
Preassignment: For the first class, bring your name card, along with a completed copy of the student information sheet that is posted on my personal website teaching page. There will be a first class reading assignment that lays out the basic facts and framework that we will use to analyze central banks. It is very costly to miss the first class and will impair your class participation grade.