© 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 Springer Texts in Business and Economics book series (STBE)

Table of contents

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

    1. Front Matter
      Pages 1-1
    2. Jin Cao, Gerhard Illing
      Pages 3-33
    3. Jin Cao, Gerhard Illing
      Pages 35-61
  3. Monetary Policy in the Short Run

    1. Front Matter
      Pages 77-77
    2. Jin Cao, Gerhard Illing
      Pages 79-103
    3. Jin Cao, Gerhard Illing
      Pages 105-137
    4. Jin Cao, Gerhard Illing
      Pages 139-150
  4. Unconventional Monetary Policy, Financial Frictions and Crises

    1. Front Matter
      Pages 153-153
    2. Jin Cao, Gerhard Illing
      Pages 155-155
    3. Jin Cao, Gerhard Illing
      Pages 157-168
    4. 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.


New Keynesian macroeconomics Financial stability Macroprudential regulation Money equilibrium Financial regulations Monetary economics and policies Exercises and solutions for courses on monetary economics

Authors and affiliations

  1. 1.Research DepartmentNorges BankOsloNorway
  2. 2.Department of EconomicsLMUMunichGermany

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

Industry Sectors
Finance, Business & Banking