Central Banking

1.Introduction: central banking in the age of Artificial Intelligence, Climate Change, Inequality and Populism 2.New shocks and crises in the 21st century as illustration of these old and new policy challenges 3.Why do you need central banks? Stabilization functions, Price and Financial stability and instability 4.Monetary Policy 5.Financial Stability 6.Inflation targeting 7.Challenges for traditional flex IT after 2000s: large capital flows, the GFC, UMP and spillovers 8.Integrated Inflation Targeting (IIT): a response to the new challenges? 9.Macro-Financial Policy Analysis under IIT 10.Central banks and the digital revolution: fintech, DeFi, crypto assets and labor markets 11.Central banks in the era of Climate Change (CC): Green Swans 12.Central banks and inequality hysteresis

lectures, face-to-face sessions, discussions encouraged

Exam, class participation

No textbook but see reference below.

Agénor P.R. and L A Pereira da Silva, (2019) “Integrated inflation targeting – Another perspective from the developing world” Bank for International Settlements, https://www.bis.org/***** Agénor P.R. and L A Pereira da Silva, (2024) “Macro-Financial Policy Analysis in Bank-Dependent Economies: an Operational Manual”, Bank for International Settlements, https://www.bis.org/***** Agénor P.R. and Montiel P. (2008) “Development macroeconomics”, 3rd edition, Princeton University Press. Agénor Pierre-Richard, Marcus Miller, David Vines, Axel Weber (Editors) (2000), “The Asian Financial Crisis: Causes, Contagion and Consequences”, Cambridge University Press Blanchard O.J. (2020) “Macroeconomics” Global edition, 8th edition, Pearson. Blinder A., (1998) “Central bank in theory and practice”, MIT Blinder A., (2013) “After the music stopped”, Peguin Press Blinder A., (2022) “A Monetary and Fiscal History of the United States, 1961-2021”, Princeton University Press Bolton P, M Deprés, L A Pereira da Silva, F Samama and R Svartzman (2020) “The green swan: Central Banking and financial stability in the age of climate change”, Bank for International Settlements, https://www.bis.org/***** Dornbusch R. and S Edwards, (1991) “The macroeconomics of populism in Latin America”, NBER and Chicago Press. Drazen A., (2000) “Political economy in macroeconomics”, Princeton University Press Friedman, Benjamin M., and Michael Woodford, eds. (2010) Handbook of monetary economics” North Holland Friedman, M., & Schwartz, A. J. (1963). A Monetary History of the United States, 1867-1960. Princeton, NJ: Princeton University Press Kindleberger, Charles P. and Robert Aliber, (1978) “Manias, Panics, and Crashes: A History of Financial Crises” Macmillan. Minsky H., (1986) “Stabilizing an unstable economy”, Yale University Press. Pereira da Silva L A, E Kharroubi, E Kohlscheen, M Lombardi and B Mojon (2022) “Inequality hysteresis and the effectiveness of macroeconomic stabilisation policies”, Bank for International Settlements, https://www.bis.org/***** Stiglitz J and B Greenwald (2003), “Towards a New Paradigm in Monetary Economics”, Cambridge University Press Tirole J. (2017) “Economics for the common good”, Princeton

Basic understanding of micro and macroeconomics as well as statistical methods / econometrics are necessary. A prerequisite is Macroeconomics for Public Policy (or its equivalent).