This course will provide a foundation for the monetary economics to the BS students. It will cover topics such as the definitions and role of money, portfolio choice, financial markets and banks, exchange rate fluctuations, central banks and monetary policy, and the monetary transmission mechanism.
Course Objectives & Learning Outcomes:
On completing this module, the learning outcomes are such that students will be able to:
- show knowledge of the role of money in the macroeconomy; demonstrate understanding of the channels of transmission of monetary policy.
- show appreciation of monetary policy choices and objectives, and of the conduct of monetary policy in a macroeconomic context.
- show the ability to develop and evaluate monetary policy models.
- discuss the merits and disadvantages of different monetary policies used by Central Banks
- evaluate the effects of monetary policy in different exchange rate regimes
- discuss the differences between fixed and flexible exchange rates and the consequences on the workings of monetary policy.
Texts and References:
- Bennett T. McCallum, (1989), Monetary Economics, Theory and Policy, McMillan.
- Fredric S. Mishkin, (1995), Financial Markets and Money, Harper & Row Publishers.
- Laider, David E.W (1996), The Demand for Money: Theories, Evidence and Problems (Fourth edition), Harper & Row, Publishers, New York.
- Miller, R. L. and David Van Hose, (2001), Money, Banking & Financial Markets, South Western, Singapore.
- Mishkin, Frederic S., (2013), The Economics of Money, Banking and Financial Markets, (Tenth edition). Addison Wesley, New York.
- Vanish K., Monetary Theory, (2000), Vikas Publishing House, Delhi.
- Patinkin D. (1989), Money, Interest, and Prices : An Integration of Monetary and Value Theory, Harper and Row Publishers.