EC500 Microeconomics and EC502 Macroeconomics
OverviewThis final year optional module covers a variety of monetary issues from both a theoretical and a policy perspective. The module starts with an introduction to the role of money in the economy, and theories of money supply and demand. A discussion of the Aggregate Supply and Demand model gives a basic foundation for analysing how monetary policy affects the economy, and a first theoretical perspective on the neutrality of money that is, whether monetary policy has real effects on the macroeconomy, in either the short or long run. The remainder of the module discusses current issues in monetary policy the goals of monetary policy and how these are expressed in modern simple models of monetary policy, central bank independence and inflation targeting.
This module appears in:
Method of assessment
20% In Course Test,
80% Examination (2 hours)
Frederic Mishkin, The Economics of Money, Banking and Financial Markets (Global Edition)
Frederic Mishkin, Kent Matthews and Massimo Giuliodori, The Economics of Money, Banking and Financial Markets (European Edition)
Alan Blinder, Central Banking in Theory and Practice, The MIT Press, 1998
By the end of the module, you are expected:
to understand the determinants of money demand and money supply
to understand the ways in which monetary policy can affect the real economy
to understand the issues involved in developing a modern, effective framework for conducting monetary policy; for instance the role of inflation targeting and central bank independence
to be able to carry out research in monetary economics independently
to have developed communication skills in seminars and class tests
to be able to study monetary economics at postgraduate level.