Macroeconomics Reading Group

Linear Rational Expectations Models

·         Blanchard, O.J., and C.M. Kahn (1980), Solution of Linear Difference Models Under Rational Expectations, Econometrica, 38, 1305 - 1311.

·         Binder, M., and M.H. Pesaran (1995), Multivariate Rational Expectations Models and Macroeconometric Modelling: A Review and Some New Results, in: M.H. Pesaran and M. Wickens (eds.): Handbook of Applied Econometrics, Vol. I, Oxford: Basil Blackwell, 139 - 187.

·         Uhlig, H. (1995): A Toolkit for Analyzing Nonlinear Dynamic Stochastic Models Easily, Discussion Paper 101, Federal Reserve Bank of Minneapolis.

DSGE Modeling

·         Clarida, R., J. Gali and M. Gertler, “The Science of Monetary Policy: A New Keynesian Perspective,” Journal of Economic Literature*, vol. 37, no 4, 1661-1707, 1999.

·         Walsh, C., “Labor Market Search, Sticky Prices, and Interest Rate Policies,” Review of Economic Dynamics, 8(2005), 829-849.

·         Lawrence J. Christiano, Martin Eichenbaum, and Charles L. Evans, 2005. "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 1-45, February.

New Keynesian Open Economy Models

·         Monacelli T. (2005): Monetary Policy in a Low Pass-Through Environment, Journal of Money Credit and Banking, Vol. 37, N. 6. 1047-1066.

·         Galí J., T. Monacelli (2005): Monetary Policy and Exchange Rate Volatility in a Small Open Economy, Review of Economic Studies, Volume 72, Number 3.

·         Corsetti G. and Pesenti P., “The simple geometry of transmission and stabilization in closed and open economy” Septemeber 2007, NBER International Seminar on Macroeconomics.

Current Account and Exchange Rate Dynamics.

·         http://currentaccount.lafollette.wisc.edu/academic.htm

Structural VAR Model

·         Sims, C. (1980), "Macroeconomics and Reality," Econometrica, 48, 1-48.

·         Blanchard, O.J. and D. Quah (1989), "The Dynamic Effects of Aggregate Demand and Supply Disturbances", The American Economic Review, 79, 655-673.

·         Gali, J. (1992), "How Well does the ISLM Model Fit Postwar U.S. Data?", Quarterly Journal of Economics, 107, 709-735.

·         Gali, J. (1999). "Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?," American Economic Review, American Economic Association, vol. 89(1), pages 249-271, March.

·         Fisher, Jonas D. M. (2006). "The Dynamic Effects of Neutral and Investment-Specific Technology Shocks," Journal of Political Economy, University of Chicago Press, vol. 114(3), pages 413-451, June.

Modeling Term Structure of Nominal Interest Rates

·         F.X. Diebold, C. Li (2006), Forecasting the term structure of government bond yields, Journal of Econometrics, 130, 337-364

·         F. X. Diebold, G.D. Rudebusch, S. B. Aruoba (2004), The macroeconomy and the Yield curve: A dynamic latent factor approach, NBER, forthcoming(?).

·         Ang, M. Piazzesi (2003), A no-arbitrage vector autoregression of term structure dynamics with macroeconomic and latent variables, Journal of Monetary Economics, 50, 745-787.

Bayesian estimation of DSGE models

·         Smets F.,R. Wouters (2003): "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1123-1175, 09.

Optimal Monetary Policy

·         Fuhrer J, Moore G. 1995. Monetary policy trade-offs and the correlation between nominal interest rates and real output. American Economic Review 85: 219–239.

·         Rudebusch G, Svensson L. 1999. Policy rules for inflation targeting. In Monetary Policy Rules, Taylor J (ed.). University of Chicago Press: Chicago.

·         Favero C, Rovelli R. 2003. Macroeconomic stability and the preferences of the Fed. A formal analysis, 1961–98. Journal of Money, Credit and Banking 35: 545–556.

·         Richard Dennis, 2006. "The policy preferences of the US Federal Reserve," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(1), pages 55-77.