ADVANCED MONETARY THEORY ECON-432 FINAL TERM PAPER
BY DR. DAN OTCHERE
INFLATION TARGETING AS A STRATEGY FOR THE CONDUCT OF MONETARY
POLICY IN CANADA.
SUBMITTED ON APRIL 3RD 2017.
1
TABLE OF CONTENTS
Page
SECTION I: HYPOTHESIS OF THE PAPER 3- 4
Description
PART A:
QUESTION 1
From the money multiplier model of the broadly- defined money supply (M2), which
is defined as:
MS2 = MB *
(1+ CD + T)
(RD + rT.t + eT.t + eD + CD)
WHERE;
As defined earlier, MS2 is the broadly defined money supply,
CD is the currency
ADVANCED MONETARY THEORY ECON-432 SECOND ASSIGNMENT
BY DR. DAN OTCHERE
SUBMITTED ON MARCH 1ST 2017.
The nature of the Rules vs. Discretion debate is one which has been a long-running debate
among economists. This debate is one which seeks whether monetary
ADVANCED MONETARY THEORY ECON-432 FIRST ASSIGNMENT
BY DR. D OTCHERE
SUBMITTED ON JAN 18TH 2016.
ANSWER: QUESTION 1
Explicitly defined, money supply is the total amount of monetary asset available in an economy
at a specific time. There are several ways t
Given that the monetary policy curve function is R = 1.5 + 0.75P,
i.
When inflation rate is 2; then the real interest rate will be;
r = 1.5 + 0.75 (2) = 3
Therefore, the real interest rate is 2.
ii.
When inflation rate is 3; then the real interest rate wi
Econ 432: Dr. Otcheres Class
As we go through the analysis of the macroeconomic framework, students are advised to note
the following points:
Central bank behavior can lead to procyclical money growth because an interest-rate targeting
regime can lead to
CHAPTER 17 NOTES
Overly expansionary monetary policy leads to high inflation
which decreases efficiency of the economy and hampers economic
growth.
Monetary policy that is too tight can produce serious recessions
in which output falls and unemployment r
CONCORDIA UNIVERSITY
SIR GEORGE WILLIAMS CAMPUS
ECONOMICS 432
WINTER 2017
TERM PAPER ASSIGNMENT: 30%
DR. D. OTCHERE
INSTRUCTIONS: Students must base their papers on the topic specified below. The purpose of
the assignment is to familiarize students with t
Chapter 13: Macroeconomic theory of a small open economy
Introduction
Many stories about Canadian economys itneraction with Rest of World in media
Look at these issues in a model of small open economy
Build on previous analysis in 3 ways
1) Take economys
Chapter 5: Measuring a Nations Income
Introduction
Micro concerned with individual decisions and interaction
Macro studies economy as a whole
Some questions involve positive analysis
Some are normative
First two chapters look at measurement
Gross Domestic
Chapter 12: Open Economy Macroeconomics: Basic Concepts
Introduction
Last semester looked at how trade could raise living standards
So far discussion of macro has ignored RoW
The chapter and next look at open economy maro
Begin looking at key macro variab
Chapter 14: Aggregate Demand and Aggregate Supply
Introduction
Economy tends to grow over time due to factor accumulation and technological progress
But in some years growth is slow or even negative
These are recessions (mild) or depressions (severe)
Q1:
Chapter 7: Production and Growth
Introduction
Huge variation in living standards around the World,
Also huge variation of the time within a country
Growth rates also vary greatly across countries
Q1: what causes differences?
Q2: What policies should poore
Chapter 10: The Monetary System
Introduction
In a world without money exchange takes place by barter
Consider the following three people
Person
Has
Wants
A
Apples
Oranges
B
Oranges
Pears
C
Pears
Apples
No double coincidence of wants exists
Suppose ora
Chapter 8: Savings, Investment and the Financial Sector
Introduction
Where do funds for investment in capital come from?
Could be own past savings
or could borrow from others
Financial system matches one persons savings with anothers investment
First loo
Chapter 9: Unemployment and its Natural Rate
Introduction
Higher unemployment means a lower standard of living
Can think of unemployment rate as having two components
1) Natural rate of unemployment
2) Cyclical unemployment
This chapter looks at the natur
Chapter 11: Money and Prices in the Long Run
Introduction
Increase in the overall level of prices over time is inflation
Over past 70 years inflation average about 4% p.a
But also variation over time, and ocasionally deflation
Look at the theory of inflat
Chapter 6: Measuring the Cost of Living
Introduction
1957, gas = 9.5c per litre, 2012 gas - $1.25.
Two possibilities.
1) Gas has become more scarce
2) Value of money decreased
This chapter measures overall cost-of-living
Use consumer price index (CPI)
Inf
Assignment 2
612
February 4, 2017
There will be 7 questions in this assignment. The assignment answers have to
be handed on Tuesday February 14, 2017, in class. Full Grade is 100 points
1. (20 points) Consider the following utility function:
1
1
u(x1 , x2
Assignment 1
612
January 24, 2017
There are 8 questions in this assignment. You will have 8 days to complete
them and hand them to me. The assignment answers have to be handed on
Wednesday , February 1, 2017 . You can drop them in my mailbox, by 2.00
p.m.
Concordia University
Department of Economics
ECON 680: Econometric Theory I
Assignment 1: Due on 06/02/2017
Winter 201716/01/2017
Question 1 (Stock and Watson, Exercise 2.27)
Let X and Z be two random variables. Suppose you know the value of Z, but not th
Lecture 1
January 9, 2017
1
Binary Relations, Preference Relations and Revealed
preference
We start with a an arbitrary set X. Let X X denote the cartesean product of all ordered
pairs (x, y) where both x and y arec from X.
1.1
Binary relation
A Binary re
Concordia University
Department of Economics
ECON 680: Econometric Theory I
Winter 2017
Monday 14:00-16:00
Instructor: Prosper Dovonon
Oce: H 1155-49
Phone: 514-848-2424 (ext. 3479)
E-mail: [email protected]
Oce Hours: Tuesday 13:00-14:30
TA: T
Concordia University
Department of Economics
ECON 680: Econometric Theory I
Assignment 2: Due on 27/02/2017 (before midterm)
Winter 201712/02/2017
Question 1
Consider the classical linear regression model:
Y = X + U,
where Y and U are two n 1-vectors, X a
ECON615: M ACROECONOMICS I
Wintr 2017
Instructor
Name:
Office:
Phone:
email:
Office hours:
Paul Gomme, Professor
H115527
514-848-2424 extension 3934
[email protected]
Mondays 10:00-11:00
Grading
There will be quizes on the following dates:
February
ECONOMETRICS I
ECON 421/521
Final Exam, Fall 2015
December 9, 2015 0900 - 1200
Room: MB2.255/430
Instructor: Prosper Dovonon
NB: Read the questions carefully. Write clear and complete answers. Show your work and get credit. Partial
answers get partial cre