Advanced Workshop For Central Bankers September 6-13, 2016

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September 6-13, 2016 Northwestern University Evanston, IL Markus Brunnermeier Jordi Gali Simon Gilchrist Charles Manski Giorgio Primiceri Jeremy Stein

This week-long workshop for central bank economists has two objectives. First, to expose participants to frontier models and techniques in monetary economics. Second, to foster discussion and exchange of ideas about applied monetary policy problems faced by different central banks. The week is organized around lectures and computer-based assignments. The workshop has been held annually since 2004. It has been attended, so far, by roughly 500 participants from 41 central bank institutions. Participating Institutions Central Banks: Armenia, Australia, Austria, Bangladesh, Brazil, Belgium, Canada, Colombia, Costa Rica, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, India, Italy, Israel, Japan, Korea, Malaysia, Mexico, Netherlands, Norway, Philippines, Poland, Slovakia, Spain, South Africa, Sweden, Switzerland and Uruguay. Federal Reserve Banks: Atlanta, Boston, Cleveland, and Dallas, European Central Bank, the Bank of International Settlements, the Inter- American Development Bank, and the International Monetary Fund.

Advanced Course lectures The workshop includes seven three-hour course lectures on the following topics. Empirical methods in monetary economics, Alternative techniques to estimate and empirically evaluate models of the monetary transmission mechanism: (i) structural VARs identified with short run restrictions, longrun restrictions, and sign restrictions; (ii) fitting dynamic models to impulse response functions; (iii) maximum likelihood methods. Specification, estimation, and analysis of monetary models, Structural monetary models: the role of different frictions, such as sticky wages, sticky prices, working capital, and credit market imperfections. The use of Bayesian and other methods to estimate models and a review of recent developments in the use of models in the monetary policy process. Open-economy models, Parity conditions in dynamic open-economy models. Empirical evidence on sources of real exchange rate (RER) fluctuations. Modeling RER fluctuations. An empirical analysis of the failure of uncovered interest parity (UIP). Modeling deviations from UIP. Macroeconomic forecasting Girogio Primiceri A comprehensive review of forecasting methods. Topics include VARs, dynamic factor models, robust Bayes inference, nowcasting, and long-run forecast uncertainty. Macro-prudential regulation, An introduction to the principles underlying macroprudential regulation and an analysis of how macroprudential considerations alter the use of regulatory tools and the design of financial regulation. CENTER FOR I N T E R N AT I O N A L MACROECONOMICS NORTHWESTERN UNIVERSITY

Special-topic lectures Jordi Gali (CREI): Labor markets and monetary policy. Markus Brunnermeier (Princeton): Financial frictions and monetary policy. Charles Manski (Northwestern University): Designing and using expectations surveys. Simon Gilchrist (Boston University): Inflation dynamics during the financial crisis. Jeremy Stein (Harvard University): Credit markets and the business cycle. Practicum The course lectures are complemented with afternoon sessions designed to provide participants with hands-on experience with the techniques presented. Logistics The workshop takes place at the James L., the home of Kellogg s Executive Education Programs. The Center is located on the shores of Lake Michigan at Northwestern University s Evanston campus.

Advanced Dates The workshop will take place between Tuesday, September 6 and Tuesday, September 13, 2016. Participants are expected to arrive on Tuesday, September 6 and leave in the afternoon of Tuesday, September 13, 2016. Participants who are interested in attending the Optional Review Session on Tuesday, September 6, 2016 are expected to arrive on Monday, September 5, 2016. This optional session is devoted to a comprehensive tutorial on what you need to know about Matlab to be able to use the software employed in the course. Schedule A preliminary workshop schedule is attached. Software and lecture materials At the end of the workshop, participants receive all the lecture materials and programs used during the practicum sessions. Price The cost of the program is $6,900 per participant. The fee (payable in U.S. dollars) includes tuition, course materials, accommodations, social program, meals, coffee breaks, and receptions. Enrollment is confirmed only upon receipt of full payment. Cancellations made before June 1st, 2016 are subject to a 25% fee. Cancellations made after June 1st, 2016 are subject to the total charge. CENTER FOR I N T E R N AT I O N A L MACROECONOMICS NORTHWESTERN UNIVERSITY

Advanced for Central Bankers Schedule, 2016 06/Sep Tuesday 07/Sept Wednesday 08/Sept Thursday 09/Sept Friday 10/Sept Saturday 11/Sept Sunday 12/Sept Monday 13/Sept Tuesday 7:30 AM to 9:00 AM 9:00 AM to 10:30 AM Using VARs DSGE models Model estimation Financial frictions Open-economy models Forecasting Giorgio Primiceri Macro-prudential regulation 10:30 AM to 10:45 AM 10:45 AM to 12:15 PM Using VARs DSGE models Model estimation Financial frictions Open-economy models Forecasting Giorgio Primiceri Macro-prudential regulation 12:15 PM to 1:30 PM Lunch Lunch Lunch Lunch Lunch Lunch Lunch 1:30PM to 4:00 PM 4:00 PM to 4:15 PM 4:15 PM to 5:30 PM Optional Matlab Review Session Jordi Gali, Labor makets and monetary policy Simon Gilchrist Inflation Dynamics Practicum Session Practicum Session Chicago Architectural Practicum Session During the Financial Crisis Practicum Session River Cruise (starts at 3:30 pm) Markus Brunnermeier Financial frictions and monetary policy Charles Manski Designing and using expectations surveys Jeremy Stein Credit Markets and the Business Cycle 5:30PM to 6:30 PM Cocktails Cocktails Cocktails 6:30PM to 8:00 PM Optional Celebration dinner at Stained Glass (7:15 pm) Show at Chicago Theater