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### lab1spring09

Course: ECON 205, Fall 2009
School: UCSC
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Word Count: 854

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205c Economics Advanced Macroeconomic Theory III UCSC Economics Dept. - Spring 2008 LAB 1 - Tuesday April 14 Problem 1 [THIS IS NOT A PROBLEM YOU NEED TO PROVIDE A WRITTEN ANSWER FOR. READ THE PROBLEM CAREFULLY, THINK ABOUT WHETHER YOU WOULD KNOW HOW TO ANSWER EACH POINT, AND WE WILL DISCUSS IN CLASS HOW TO GO ABOUT SOLVING IT ] : Optimal Monetary Policy The economy is described by the following log-linearized...

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205c Economics Advanced Macroeconomic Theory III UCSC Economics Dept. - Spring 2008 LAB 1 - Tuesday April 14 Problem 1 [THIS IS NOT A PROBLEM YOU NEED TO PROVIDE A WRITTEN ANSWER FOR. READ THE PROBLEM CAREFULLY, THINK ABOUT WHETHER YOU WOULD KNOW HOW TO ANSWER EACH POINT, AND WE WILL DISCUSS IN CLASS HOW TO GO ABOUT SOLVING IT ] : Optimal Monetary Policy The economy is described by the following log-linearized equations: xt = [it Et t+1 ] + Et xt+1 + gt , t = xt + Et t+1 + ut , ut = u ut1 + u,t gt ...
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