Econ 453 students will be able to
- Summarize the broad empirical evidence regarding the long-run and short-run relationships between money and inflation and money and output.
- Demonstrate a fundamental knowledge of the institutional and regulatory structure of the U.S. financial system.
- Explain the macroeconomic role of central banks with special emphasis on the role of the Federal Reserve System in the U.S. economy.
- Demonstrate an active understanding of the following elements of modern monetary theory:
The role of expectations, especially rational expectations
Solve simple rational expectations models
Analyze the rudimentary new Keynesian dynamic stochastic general equilibrium models
Theories of the transmission mechanism of monetary policy
- Identify the current issues in the conduct of monetary policy.
- Demonstrate a general understanding of the causes and consequences of financial crises with a focus on the financial crisis of 2007-2009.
- Identify and evaluate the principal issues regarding financial regulation.