The Political Economy of Central Banking

This course is about the economics and some of the politics of central banking, especially monetary policy. Special emphasis is given to central banks as unique policymaking institutions and, especially, to the Federal Reserve System, although other central banks are mentioned frequently. Since the focus is on monetary policy, the course presupposes a working knowledge of the relevant macroeconomics, but particular aspects thereof are taught in the course. Attention is paid to the causes, consequences, and central bank behavior during and since the financial crisis and the Covid-19 crisis.