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School of Social Sciences

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BAEcon Economics
Learn how the social sciences can help you to understand today's world.

BAEcon Economics

Year of entry: 2018

Course unit details:
Money, Banking & Financial Markets

Unit code ECON30852
Credit rating 10
Unit level Level 3
Teaching period(s) Semester 2
Offered by Economics
Available as a free choice unit? Yes

Overview

See course Blackboard pages.

Pre/co-requisites

Unit title Unit code Requirement type Description
Macroeconomics IIA ECON20401 Pre-Requisite Compulsory
Macroeconomics IIB ECON20402 Pre-Requisite Compulsory
Pre-requisites: (ECON20401 & ECON20402)

Aims

The aim of this course is to introduce students to the way that banks, financial markets and monetary policy work and interact in theory and practice. We examine how bond and money markets operate and how interest rates behave. We also look into some of the problems and dilemmas that central banks face in choosing appropriate policies and implementing them, both in normal times and during financial crises. Throughout the course examples from financial newspapers and other sources are used to familiarise students with how theoretical concepts are used in practice.  

Learning outcomes

At the end of this course, you should be able to:

  1. Understand how interest rates behave in the bonds and money markets.
  2. Demonstrate their understanding of the term structure of interest rates.
  3. Understand the theories of the demand for money and their implications.
  4. Understand how the supply of money is created within the banking system.
  5. Understand how central banks conduct monetary policy.
  6. Demonstrate their knowledge on the various tools, targets and goals employed in monetary policy and understand their limitations.

Syllabus

  • The Financial Markets and Interest Rates.
  • The Term Structure of Interest Rates.
  • The Demand for Money.
  • The Supply of Money and the Banking System.
  • Central Bank Tools of Monetary Policy.
  • Goals and Targets of Monetary Policy.
  • Monetary Targets Vs Interest Targets.
  • Policy Targets in Practice.
  • The Taylor Rule. Inflation Targeting.
  • The 2007 Financial.

Teaching and learning methods

Lectures and exercise classes.

Employability skills

Analytical skills
Critical reflection and evaluation. Policy analysis and decision-making.
Problem solving
Research
Planning independent research using library electronic and online resources. Using reporting skills. Using diagrammatical analysis in reports.
Other
Presentation. Literacy. Computer literacy. Time management. Applying subject knowledge. Research. Improving own learning.

Assessment methods

Method Weight
Other 15%
Written exam 85%
  • Mid-Term Assignment - approx. 2500 words (15%).
  • Final Exam (May/June) - the exam paper consists of two sections, A and B. You must answer ALL Questions from Section A (approx. 5 short questions) and answer ONE Question (out of 2 questions) from section B.  The exam duration is 1.5 hours (85%).

Feedback methods

  • Feedback provided on submitted assignments.
  • Class feedback.
  • Office hours.
  • Revision sessions.
  • Support hours.   

Recommended reading

Main Textbooks:

  • Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets, 10th Edition, Pearson.
  • Cecchetti  and Schoenholtz  3rd  Ed “Money, Banking, and Financial Markets”.
     

Study hours

Scheduled activity hours
Assessment written exam 1.5
Lectures 18
Tutorials 5
Independent study hours
Independent study 75.5

Teaching staff

Staff member Role
George Bratsiotis Unit coordinator

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