Money and credit perform a range of crucial functions in market economies. This module studies the microeconomic foundations of money and credit, and the roles played by money and credit markets in contributing to macroeconomic growth, fluctuations and crises. Throughout the module, we also consider the roles of government institutions including central banks and financial regulators within modern markets for money and credit. The module makes use of theoretical models to aide understanding and analyse policy. These models are motivated by and tested against historical and contemporary evidence. .. We explore and compare a variety of frameworks for organising monetary policy and the particular challenges facing modern central banks in how they implement monetary policy today. We understand the microeconomic foundations of banking and how these should influence financial regulation, examining the linkages between the private banking sector, central banks and monetary policy throughout the module.
Private Study: 120
Contact Hours: 30
Compulsory to the following courses:
• MSc Financial Economics
Optional to the following courses:
• MSc Economics
• MSc Development Economics
Method of assessment
Take Home Assessment 20%
Examination (2 hours) 80%
Reassessment: 100% exam
*for the 23-24 academic year exams will be online*
The University is committed to ensuring that core reading materials are in accessible electronic format in line with the Kent Inclusive Practices.
The most up to date reading list for each module can be found on the university's reading list pages.
See the library reading list for this module (Canterbury)
On successfully completing the module students will be able to:
1 Systematically and comprehensively understand the trade-offs involved in setting monetary policy in the modern economy
2 Critically understand and assess the role of central banking in the banking system, and in setting monetary policy
3 Understand the microeconomic theory of banking
4 Critically understand the role of financial regulation
5 Critically evaluate and compare different frameworks for organising monetary policy in achieving desirable macroeconomic outcomes
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Credit level 7. Undergraduate or postgraduate masters level module.
- ECTS credits are recognised throughout the EU and allow you to transfer credit easily from one university to another.
- The named convenor is the convenor for the current academic session.
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