The Economics of Money and Banking - ECON5340

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Module delivery information

Location Term Level1 Credits (ECTS)2 Current Convenor3 2022 to 2023
Spring Term 5 15 (7.5) Christian Siegel checkmark-circle


The module provides a starting point for understanding financial markets. It attempts to link models of money, banking and finance into one generic, or foundation, view and provides insight into 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 considers how financial and economic innovations have evolved over time, and explores why and how it seems to be that when finance fails, so does the modern market economy.

Important considerations within the module include:

• 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?


Contact hours

Total contact hours: 29 hours
Private study hours: 121
Total study hours: 150


This module is optional for all Single and Joint honours degree programmes in Economics.
This module is not available to students across other degree programmes in the University.

Method of assessment

Essay (1250 words) (20%)
Examination, 2 hours (80%)

**Please note that the exam in May/June 2023 will be Online (24 hour window)**

Reassessment Instrument: 100% exam

Indicative reading

• Champ, B., S. Freeman, and J. Haslag, (2011). Modelling Monetary Economics, Cambridge University Press: Cambridge.
• Greenbaum, S. I., A. V. Thakor, A. W. A. Boot. Contemporary Financial Intermediation, 3rd edition, 2015, Elsevier.
• Williamson, S. D. (2014). Macroeconomics, 5th international edition, Pearson.

See the library reading list for this module (Canterbury)

Learning outcomes

By the end of the module, you will be able to:

* demonstrate knowledge and understanding of the appearance of money.
* understand the appearance and role of commercial banks as financial intermediaries.
* analyse the functions of money, commercial banks and the central bank.
* understand the relationship between the central bank and commercial banks.
* apply analytical and mathematical skills to analyse financial issues.
* analyse rate of return differences across different financial assets.


  1. Credit level 5. Intermediate level module usually taken in Stage 2 of an undergraduate degree.
  2. ECTS credits are recognised throughout the EU and allow you to transfer credit easily from one university to another.
  3. The named convenor is the convenor for the current academic session.
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