Macroeconomics IV (Monetary Economics)


This part of the Macro course is devoted to Monetary Economics in which we focus on monetary policy. This lecture will be also taught by Edouard Challe from the European University Institute.

We start with the basics of macroeconomic modeling – general equilibrium model, and discussion of monetary policy in the Neoclassical model.

The key part of the course is the New Keynesian model which is the workhorse model for many economists and policy makers. This topic is challenging but we will proceed slowly. 

Edouard Challe will discuss fiscal policy in the New Keynesian model, liquidity traps and will make an overview of Heterogeneous Agent NK models.


Will be interesting for

  • Students, professors, and scientists


After course completion, you will be able to

  • Basic macroeconomic modeling skills;
  • Understanding of the New Keynesian model – the workhorse model for modern monetary theory and policy;
  • Overview of recent topics and issues in monetary economics;



Intermediate Macro (IS-LM model), Calculus (derivatives, optimization, linear algebra)



Kiiashko Sergii – Ph.D. in Economics at Princeton University

Edouard Challe – Ph.D. (European University Institute)





Education format

Twice a week, course duration  –  seven weeks



Monday, Wednesday, 15.30-16.50



10 000 uah


Course outline

1. Огляд портфельного менеджменту

2. Introductory lecture, empirical evidence and the importance of macroeconomic modeling for studying monetary policy

3. General equilibrium model

4. Monetary policy in Neoclassical models

5. Monopolistic competition models

6. New Keynesian model

7. Optimal monetary policy in NK model

8. Fiscal Policy in NK model

9. Liquidity traps

10. Overview of Heterogeneous Agent NK models