This course provides a new methodological approach to money and macroeconomics. Realizing that abstract equilibrium models lack descriptions of fundamental issues of a modern monetary economy, the focus of this course lies on the (stylized) balance sheets of the main actors. Money, after all, is born on the balance sheets of the central bank or commercial bank. The course aims to explain how the two monetary circuits – central bank deposits and bank deposits – are intertwined. It is also shown how government spending injects money into the economy. We discuss real world problems with a focus on the economic crisis in the eurozone. Specific issues discussed are quantitative easing, the TARGET2 system and the way the European Central Bank works.
The course is at bachelor level; no prior knowledge of economics or monetary theory necessary.
Dirk H. Ehnts, PhD
18-22 July 2016, mornings (9-12 hrs) and afternoons (13-15 hrs)