Seminar (Master) during the summer term 2024
In the summer semester of 2025, 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 from July 2nd 2025 (from midday) to July 4th 2025 (6 PM) in STA2. In addition, there will be an introductory event via Zoom on April 11th, 2025 at 4:30 pm to give an overview about the topics, to provide introductory literature, and to advice on how to prepare the term paper and presentation. The term papers must be submitted to Prof. Dr. Krämer by June 20st 2025 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. |
The upcoming ECB strategy review The ECB is currently in the process of revising its monetary policy strategy. Please describe what a monetary policy strategy is, as opposed to an operational framework. How has the ECB's strategy evolved since the introduction of the euro? Please describe the current monetary policy strategy and analyse the necessary revisions in the light of the recent period of high inflation. |
2. |
A comeback for 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 using balance sheets of the ECB, banks and other relevant players. How did M3 perform in other 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. |
Target Imbalances – a real problem? During the sovereign debt crises, huge imbalances developed between the national central banks in the eurozone Target 2 payment system. Please describe, on the basis of balance sheets, how cross-border payments are processed in this system. What were the causes of the high Target imbalances? Do they represent a real risk and what can be done about them? |
4. |
Profit Inflation – a real problem? Traditionally, economists focus on labour costs as the 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? |
5. |
Digital euro – a solution in search of a problem? The ECB is likely to introduce a digital euro. Please analyse the implications of a digital euro using the balance sheets of the ECB, the banks and non-banks. Is a digital bank run a real threat and what can the ECB do to prevent such a bank run? What does a digital euro mean for the role banks play in intermediation? What is your verdict on the digital euro? |
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. Howe does it help to understand the Great Financial Crisis? |