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  • © 2019

Instructor's Manual for Money: Theory and Practice

  • Provides assistance in teaching monetary economics and policies
  • Offers a pedagogic approach, as well as questions and answers for the classroom
  • Gives useful guidelines to instructors in using the textbook Money:Theory and Practice

Part of the book series: Springer Texts in Business and Economics (STBE)

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Table of contents (10 chapters)

  1. Front Matter

    Pages i-ix
  2. Money and Equilibrium in the Long Run

    1. Front Matter

      Pages 1-1
    2. Long Run Growth: The Basic Framework

      • Jin Cao, Gerhard Illing
      Pages 3-33
    3. Money and Long Run Growth

      • Jin Cao, Gerhard Illing
      Pages 35-61
  3. Monetary Policy in the Short Run

    1. Front Matter

      Pages 77-77
    2. New Keynesian Macroeconomics

      • Jin Cao, Gerhard Illing
      Pages 79-103
    3. Optimal Monetary Policy

      • Jin Cao, Gerhard Illing
      Pages 105-137
    4. Monetary Policy Under Uncertainty

      • Jin Cao, Gerhard Illing
      Pages 139-150
  4. Unconventional Monetary Policy, Financial Frictions and Crises

    1. Front Matter

      Pages 153-153
    2. Monetary Policy in Practice

      • Jin Cao, Gerhard Illing
      Pages 155-155
    3. Financial Frictions and Monetary Policy

      • Jin Cao, Gerhard Illing
      Pages 157-168
    4. Monetary Policy and Financial Stability

      • Jin Cao, Gerhard Illing
      Pages 169-179
  5. Back Matter

    Pages 181-219

About this book

This instructor’s manual complements the textbook Money: Theory and Practice which provides an introduction to modern monetary economics for advanced undergraduates, highlighting the lessons learned from the recent financial crisis. The manual provides teachers with exercises and examples that reflect both the core New Keynesian model and recent advances, taking into account financial frictions, and discusses recent research on an intuitive level based on simple static and two-period models.



Authors and Affiliations

  • Research Department, Norges Bank, Oslo, Norway

    Jin Cao

  • Department of Economics, LMU, Munich, Germany

    Gerhard Illing

About the authors

Jin Cao is a research economist in Norges Bank, the Central Bank of Norway. He holds a PhD in economics from Ludwig Maximilians University of Munich, Germany. His research focuses on banking and finance, monetary economics, economics and institutions. 


Gerhard Illing holds the chair in macroeconomics at the Ludwig Maximilian University in Munich, Germany. Previously, he was Professor at the University of Bamberg, Germany from 1993 -1995 and at the Goethe University Frankfurt, Germany from 1995 - 2001. His research focuses on monetary theory, financial stability, systemic risk and lender of last resort policy. He has written several books on macroeconomics, monetary theory and game theory.  

Bibliographic Information

Buy it now

Buying options

eBook USD 54.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book USD 69.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Other ways to access