The Economics of Money and Banking - EC534

Location Term Level Credits (ECTS) Current Convenor 2018-19 2019-20
(version 2)
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5 15 (7.5) DR C Siegel


• EC304 Economics Principles of Economics
• EC305/EC306 Mathematics Mode A or B
• EC309 Statistics for Economics





The module asks what determines the set of equilibrium prices required to provide an appropriate level of savings in an economy to finance the expected level of expected activity. It tries to link models of money, banking and finance into one generic, or foundation, view. Specifically, we shall move towards an understanding of how financial and economic innovation have moved hand in glove over many centuries and how it seems to be that when finance fails, so does the modern market economy. Some of the questions we consider are:

  • How can we analyse the appearance of money in an economy?
  • What is the link between money and finance?
  • What explains bank runs?
  • Can we explain the occurrence of financial crises?

  • This second-year optional module emphasises both analytical techniques and historical experience. The economic analysis of money and banking is the starting point for understanding financial markets.


    This module appears in:

    Contact hours

    20 lectures
    9 seminars
    4 drop-in sessions

    Method of assessment

    20% Essay (1500 words)
    80% Examination

    Preliminary reading

    Students should routinely read the latest journals from key policy making bodies, to relate financial developments back to class. Weblinks:

    See the library reading list for this module (Canterbury)

    See the library reading list for this module (Medway)

    Learning outcomes

    By the end of the module, you will:

    • have improved your analytical skills in using mathematics to analyse financial questions;
    • have developed an ability to solve financial and economics problems and present your solutions in spoken and written form;
    • have improved your ability to relate intuitive and mathematical explanations of money and banking.

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