Year of entry: 2018
Course unit details:
Money, Banking & Financial Markets
|Unit level||Level 3|
|Teaching period(s)||Semester 2|
|Available as a free choice unit?||Yes|
See course Blackboard pages.
|Unit title||Unit code||Requirement type||Description|
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.
At the end of this course, you should be able to:
- Understand how interest rates behave in the bonds and money markets.
- Demonstrate their understanding of the term structure of interest rates.
- Understand the theories of the demand for money and their implications.
- Understand how the supply of money is created within the banking system.
- Understand how central banks conduct monetary policy.
- Demonstrate their knowledge on the various tools, targets and goals employed in monetary policy and understand their limitations.
- 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.
- Analytical skills
- Critical reflection and evaluation. Policy analysis and decision-making.
- Problem solving
- Planning independent research using library electronic and online resources. Using reporting skills. Using diagrammatical analysis in reports.
- Presentation. Literacy. Computer literacy. Time management. Applying subject knowledge. Research. Improving own learning.
- 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 provided on submitted assignments.
- Class feedback.
- Office hours.
- Revision sessions.
- Support hours.
- Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets, 10th Edition, Pearson.
Cecchetti and Schoenholtz 3rd Ed “Money, Banking, and Financial Markets”.
|Scheduled activity hours|
|Assessment written exam||1.5|
|Independent study hours|
|George Bratsiotis||Unit coordinator|