A preliminary version of this reading list, prepared by Fernando Machado Goncalves...
From: Fernando Machado Goncalves
Subject: Re: reading course
Monetary and Fiscal Policy Reading Course: Spring 2003
1. Monetary Policy
A) A framework for analyzing monetary policy
Cecchetti, Stephen G. (1998), "Policy Rules and Targets: Framing the Central Banker's Problem," Economic Policy Review of the Federal Reserve Bank of New York 4 (June 1998) 1-14.
Clarida, Richard, Jordi Gali, and Mark Gertler (1999), "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature 37, 1661-1707.
Svensson, Lars E.O. (2000), "Open-Economy Inflation Targeting," Journal of International Economics 50 (2000), 155-183.
B) The evolution of monetary policy rules
McCallum, Bennett T. (1999), "Issues in the Design of Monetary Policy Rules," in Taylor, John B., and Michael Woodford, eds., Handbook of Macroeconomics, Vol. 1C, North-Holland, chap. 23. (NBER Working Paper No. 6016.)
Svensson, Lars E.O. (2001), "What Is Wrong with Taylor Rules? Using Judgment in Monetary Policy through Targeting Rules," working paper.
Taylor, John B. (1993), "Discretion versus Policy Rules in Practice," Carnegie-Rochester Conference Series on Public Policy 39, 195-214.
C) Monetary-policy issues for the Eurosystem
Begg, David, Paul De Grauwe, Francesco Giavazzi, Harald Uhlig, and Charles Wyplosz (1998), The ECB: Safe at any Speed?, Monitoring the European Central Bank 1, CEPR, London.
Buiter, Willem H. (1999), "Alice in Euroland," CEPR Policy Paper No. 1.
European Central Bank (1999), "The Stability-Oriented Monetary Policy Strategy of the Eurosystem," ECB Monthly Bulletin, January 1999, 39-50.
European Central Bank (2001), The Monetary Policy of the ECB, ECB, Frankfurt.
Gali, Jordi (2001), "Monetary Policy in the Early Years of EMU," working paper.
Svensson, Lars E.O. (1999), "Monetary Policy Issues for the Eurosystem," Carnegie-Rochester Conferences Series on Public Policy 51-1, 79-136.
Svensson, Lars E.O. (2000), "The First Year of the Eurosystem: Inflation Targeting or Not?" American Economic Review: Papers and Proceedings 90, May 2000, 95-99.
D) The Liquidity Trap
Bernanke, Ben S. (2000), "Japanese Monetary Policy: A Case of Self-Induced Paralysis?" working paper.
Goodfriend, Marvin (2000), "Overcoming the Zero Bound on Interest Rate Policy," Journal of Money, Credit, and Banking 32 (November 2000, Part 2), 1007-1035.
Krugman, Paul (1998), "It’s Baaack: Japan’s Slump and the Return of the Liquidity Trap," Brookings Papers on Economic Activity 1998(2), 137-205.
Meltzer, Allan H. (1999), "A Policy for Japanese Recovery," working paper.
Svensson, Lars E.O. (2001), "The Zero Bound in an Open Economy: A Foolproof Way of Escaping from a Liquidity Trap," Monetary and Economic Studies 19(S-1), February 2001, 277-312.
E) Recent New Classical open-economy models of monetary policy
Canzoneri, Matthew B., Robert E. Cumby and Behzad T. Diba (2002), "The Need for International Policy Coordination: What's Old, What's New, What's Yet to Come?" NBER Working Paper No. 8765.
Cole, Harold L, and Maurice Obstfeld (1991), "Commodity Trade and International Risk Sharing: How Much Do Financial Markets Matter?" Journal of Monetary Economics 28, 3-24.
Corsetti, Giancarlo, and Paolo Pesenti (2002), "International Dimensions of Optimal Monetary Policy," working paper.
Friberg, Richard (1998), "In Which Currency Should Exporters Set Their Prices," Journal of International Economics 45, 59-76.
Lane, Philip R. (2001), "The New Open Economy Macroeconomics: A Survey," Journal of International Economics 54, 235-266.
F) Recent New Keynesian open-economy models of monetary policy
Ball, Larry (1999), "Policy Rules for Open Economies," in Taylor (1999)*
Benigno, Gianluca, and Pierpaolo Benigno (2002), "Implementing Monetary Cooperation Through Inflation Targeting," CEPR DP No. 3226.
Clarida, Richard, Jordi Gali, and Mark Gertler (2002), "A Simple Framework for International Monetary Policy Issues," working paper, February.
Nelson, Eward (2002), "Comment on Clarida, Gali and Gertler (2002)."
Schmitt-Grohe, Stephanie, and Martin Uribe (2001), "Closing Small Open Economy Models," Working Paper.
2. Fiscal Policy
A) Budget Deficits and Fiscal Policy
Barro, Robert (1974), "Are government bonds net wealth?" Journal of Political Economy, 82: 1095-1117.
Barro, Robert (1979), "On the determination of public debt" Journal of Political Economy, 87: 940-971.
Bohn, H. (1988), "Why do we have nominal debt?", Journal of Monetary Economics, 21, Issue 1, 127-140.
Bohn, H. (1990), "Tax Smoothing with Financial Instruments", American Economic Review, 80:1217-30.
Calvo, G. (1988), "Servicing the public debt: the role of expectations", American Economic Review, 78:647-61.
Missale, A. and Blanchard, O. (1994), "The debt burden and the debt maturity", American Economic Review, 84, no.1, March.
B) Fiscal Policy and Inflation
Canzoneri, Matthew B., Robert E. Cumby, and Behzad T. Diba (2000): "Is the Price Level Determined by the Need for Fiscal Solvency?" American Economic Review, forthcoming.
Sargent, Thomas J., and Neil Wallace (1981): "Some Unpleasant Monetarist Arithmetic," Federal Reserve Bank of Minneapolis Quarterly Review 5: 1-17.
Sims, Christopher A. (1993): "A Simple Model for the Study of the Determination of the Price Level and the Interaction of Monetary and Fiscal Policy," unpublished manuscript, Princeton University.
Dixit, Avinash, and Luisa Lambertini (2001): "Fiscal Discretion Destroys Monetary Commitment," unpublished manuscript, Princeton University and UCLA.
Taylor, John B. (1995): "Monetary Policy Implications of Greater Fiscal Discipline," in Budget Deficits and Debt: Issues and Options, proceedings of a symposium organized by the Federal Reserve Bank of Kansas City (with commentaries--Mervyn King and Helmut Schieber--and general discussion).
Woodford, Michael (1997): "Control of the Public Debt: A Requirement for Price Stability," in Calvo, G., and M. King, The Debt Burden and Monetary Policy, London: Macmillan (link: NBER WP version).
Woodford, Michael (1998): "Public Debt and the Price Level," unpublished manuscript, Princeton University.
Woodford, Michael (2000): "Fiscal Requirements for Price Stability," Journal of Money, Credit, and Banking, forthcoming.
*Taylor, John B. (1999), "A Historical Analysis of Monetary Policy Rules," in Taylor, John B., ed., Monetary Policy Rules, Chicago: Univ. of Chicago Press.