Seminar (Master) during the summer term 2024

In the summer semester of 2024, the master seminar "Current Issues in Macroeconomics and Monetary Policy" will be offered by Honorary Professor Dr. Jörg Krämer (Chief Economist of Commerzbank AG).

Examination:

You can acquire 6 ECTS for the module "Specialization in Economics 1-6". In addition to the preparation and presentation of a term paper (15-20 pages), active participation in the discussion during the seminar counts for your final grade.

Dates:

The seminar will take place on the July 3^th 2024 (from midday) in seminar room 6 (Chair of Marketing & Media, Am Stadtgraben 13-15) and from the 4^thto the July 5^th 2024 (6 PM) in STA2. In addition, there will be an introductory event via Zoom on April 12th, 2024 at 5 pm to give an overview about the topics, to provide introductory literature, and to give instructions on how to prepare the term paper and presentation. The term papers must be submitted to Prof. Dr. Krämer by June 21^st 2024 at the latest.

Registration:

The seminar is designed and supervised entirely by Prof. Dr. Krämer and thus represents an ideal interface between theory and practice. Please register for the introductory event at Joerg.Kraemer@commerzbank.com to receive the link to the video conference one week in advance. For the seminar, please also register at Joerg.Kraemer@commerzbank.com, stating your desired topic. Please note that the number of participants is limited! Registration at the examination office takes place during the early examination phase.

Each topic will be assigned a maximum of twice, the assignment of topics is based on the "first come, first served" principle.


1.	Digital euro – a solution in search of a problem? Few economists ask why digital central bank money (“digital euro”) is needed. What are the problems a digital euro should solve? Are the arguments put forward by ECB officials convincing?
2.	The comeback of money supply M3 In contrast to the Bundesbank era money supply M3 no longer plays a major role at the ECB. However, during Corona M3 helped to explain the huge increase of inflation. Please explain this phenomenon and analyze the performance of M3 in past periods of high inflation. Why did the relationship between M3 and inflation faltered in the low inflation periods prior to Corona? What does all this mean for monetary policy?
3.	Profit Inflation – a real problem? Traditionally, economists focus on labour costs as a dominant driver of inflation. However, during corona higher profits were identified as another source of inflation. What is profit inflation? How can it be calculated for Germany? How should the ECB react to it?
4.	How relevant are consumers‘ inflation expectations? Consumers‘ inflation expectations do not have a good reputation among economists as they are perceived as backward looking. However, Professor Ricardo Reis shows that a rising skewness of the distribution of inflation expectations has been a good leading indicator of inflation. Please describe und critically assess this approach.
5.	The ECB’s operational framework – back to normal? The ECB is currently revising its operational framework which determines the size of banks’ excess liquidity, how many government bonds are on the ECB balance sheet etc. Please analyze the operational framework in the years prior to the Great Financial Crisis and how the crisis changed the system. What are the options to return to a more market driven system?
6.	Hayek’s business cycle theory The Great Financial Crisis led economists to revisit Hayek’s business cycle theory. Please describe the theory using Roger Garrison’s approach. Does it help to understand the Great Financial crisis?
7.	The implications of price controls The current high inflation rates caused some economists to rethink price controls. Please describe President Nixon’s price controls and their implications.