Monetary Economics

  1. International Monetary Economics
    1. The Foreign Exchange Market
      1. Structure and Participants
        1. Market Size and Turnover
          1. Major Trading Centers
            1. Market Participants
              1. Commercial Banks
                1. Central Banks
                  1. Corporations
                    1. Institutional Investors
                      1. Retail Traders
                    2. Exchange Rate Determination
                      1. Spot Exchange Rates
                        1. Forward Exchange Rates
                          1. Currency Futures and Options
                          2. Exchange Rates in the Short Run: Interest Parity Condition
                            1. Covered Interest Parity
                              1. Forward Premium/Discount
                                1. Arbitrage Conditions
                                  1. Deviations and Transaction Costs
                                  2. Uncovered Interest Parity
                                    1. Expected Exchange Rate Changes
                                      1. Risk Premium
                                        1. Empirical Evidence
                                        2. Real Interest Parity
                                          1. Real Exchange Rates
                                            1. Inflation Differentials
                                          2. Exchange Rates in the Long Run: Purchasing Power Parity (PPP)
                                            1. Law of One Price
                                              1. Arbitrage in Goods Markets
                                                1. Transportation Costs
                                                  1. Trade Barriers
                                                  2. Absolute PPP
                                                    1. Price Level Comparisons
                                                      1. Big Mac Index
                                                      2. Relative PPP
                                                        1. Inflation Differentials
                                                          1. Exchange Rate Changes
                                                          2. Limitations of PPP
                                                            1. Non-Traded Goods
                                                              1. Productivity Differences
                                                                1. Market Imperfections
                                                            2. Exchange Rate Regimes
                                                              1. Fixed Exchange Rate Systems
                                                                1. Pegged Regimes
                                                                  1. Hard Pegs
                                                                    1. Soft Pegs
                                                                      1. Crawling Pegs
                                                                      2. Currency Boards
                                                                        1. Full Convertibility
                                                                          1. Automatic Adjustment
                                                                            1. Examples and Experiences
                                                                            2. Monetary Unions
                                                                              1. Common Currency
                                                                                1. Shared Monetary Policy
                                                                                  1. European Monetary Union
                                                                                2. Floating (Flexible) Exchange Rate Systems
                                                                                  1. Free Float
                                                                                    1. Market Determination
                                                                                      1. No Intervention
                                                                                      2. Managed Float Regimes (Dirty Float)
                                                                                        1. Central Bank Intervention
                                                                                          1. Smoothing Operations
                                                                                            1. Leaning Against the Wind
                                                                                          2. Intermediate Regimes
                                                                                            1. Target Zones
                                                                                              1. Basket Pegs
                                                                                                1. Crawling Bands
                                                                                              2. The Policy Trilemma (The Impossible Trinity)
                                                                                                1. Free Capital Mobility
                                                                                                  1. Capital Account Liberalization
                                                                                                    1. Financial Integration
                                                                                                    2. Fixed Exchange Rate
                                                                                                      1. Exchange Rate Stability
                                                                                                        1. Credibility Benefits
                                                                                                        2. Independent Monetary Policy
                                                                                                          1. Domestic Policy Autonomy
                                                                                                            1. Inflation Control
                                                                                                            2. Trade-offs and Policy Choices
                                                                                                              1. Corner Solutions
                                                                                                                1. Intermediate Regimes
                                                                                                                  1. Country Experiences
                                                                                                                2. Monetary Policy in an Open Economy
                                                                                                                  1. The Mundell-Fleming Model
                                                                                                                    1. Assumptions and Structure
                                                                                                                      1. Small Open Economy
                                                                                                                        1. Perfect Capital Mobility
                                                                                                                          1. Fixed vs. Flexible Exchange Rates
                                                                                                                          2. Policy Effectiveness under Different Regimes
                                                                                                                            1. Fiscal Policy Effectiveness
                                                                                                                              1. Monetary Policy Effectiveness
                                                                                                                                1. Exchange Rate Effects
                                                                                                                              2. Monetary Policy under Fixed Exchange Rates
                                                                                                                                1. Constraints and Adjustments
                                                                                                                                  1. Balance of Payments
                                                                                                                                    1. Reserve Changes
                                                                                                                                      1. Sterilization Operations
                                                                                                                                      2. Speculative Attacks
                                                                                                                                        1. Currency Crises
                                                                                                                                          1. Self-Fulfilling Prophecies
                                                                                                                                        2. Monetary Policy under Floating Exchange Rates
                                                                                                                                          1. Autonomy and Transmission
                                                                                                                                            1. Exchange Rate Channel
                                                                                                                                              1. International Spillovers
                                                                                                                                              2. Coordination Issues
                                                                                                                                                1. Beggar-Thy-Neighbor Policies
                                                                                                                                                  1. Currency Wars
                                                                                                                                              3. Global Financial Crises and Policy Coordination
                                                                                                                                                1. Causes and Transmission of Crises
                                                                                                                                                  1. Financial Contagion
                                                                                                                                                    1. Capital Flow Reversals
                                                                                                                                                      1. Banking Sector Linkages
                                                                                                                                                      2. International Policy Responses
                                                                                                                                                        1. Central Bank Cooperation
                                                                                                                                                          1. Swap Line Arrangements
                                                                                                                                                            1. Coordinated Interest Rate Cuts
                                                                                                                                                            2. Role of International Institutions
                                                                                                                                                              1. International Monetary Fund
                                                                                                                                                                1. World Bank
                                                                                                                                                                  1. Bank for International Settlements
                                                                                                                                                                    1. Financial Stability Board
                                                                                                                                                                    2. Lessons from Recent Crises
                                                                                                                                                                      1. Asian Financial Crisis
                                                                                                                                                                        1. Global Financial Crisis
                                                                                                                                                                          1. European Debt Crisis
                                                                                                                                                                            1. COVID-19 Pandemic Response

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                                                                                                                                                                        7. Modern Monetary Policy in Practice

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                                                                                                                                                                        1. Foundations of Money and the Financial System