ECON 453

Econ 453 students will be able to

Summarize the broad empirical evidence regarding the long-run and short-run relationships between money and inflation and money and output. Demonstrate a fundamental knowledge of the institutional and regulatory structure of the U.S. financial system. Explain the macroeconomic role of central banks with special emphasis on the role of the Federal Reserve System in the U.S. economy. Demonstrate an active understanding of the following elements of modern monetary theory: The role of expectations, especially rational expectations Solve simple rational expectations models Analyze the rudimentary new Keynesian dynamic stochastic general equilibrium models Theories of the transmission mechanism of monetary policy Identify the current issues in the conduct of monetary policy. Demonstrate a general understanding of the causes and consequences of financial crises with a focus on the financial crisis of 2007-2009. Identify and evaluate the principal issues regarding financial regulation.