Module description
What is the module about?
This is a course on the economics of money, banking and financial markets. The course aims to provide the student with an introduction to the role of money, financial markets, financial institutions and monetary policy in the economy, thus providing a solid foundation for further study or employment in the financial services industry. There are three main components of the course. First, the role of financial markets in the economy will be considered with a particular emphasis on bond markets and interest rate determination. The course will then cover the main aspects of banks and other financial institutions before turning to an investigation of the role of money, central banking and monetary policy.
Who should do this module?
This module is aimed at students wanting a deeper understanding of the macroeconomics of banking and finance. It should be of interest to students who want to know more about monetary policy, how it operates and links with financial institutions.
Provisional Lecture Outline
Lecture 1: Money and the Financial System
Lecture 2: The determinants of the interest rates
Lecture 3: The risk and term structure of interest rates
Lecture 4: Stock market prices and rational expectations
Lecture 5: How Banks Work
Lecture 6: Banking Regulation, Banking Industry
Lecture 7: Central Banks and the transmission mechanism of monetary policy.
Lecture 8: The money supply process
Lecture 9: The conduct of monetary policy: Strategy and Tactics.
Lecture 10: The Foreign Exchange Market
Assessment details
85% Examination
15% Mid Term
The format of the examination has not yet been confirmed. All students will be expected to sit any remote exams in January, but semester 1 only students will be set an alternative assessment in lieu of in-person exams
Teaching pattern
Weekly Lecture
Weekly Tutorial
Suggested reading list
Mishkin, Frederic S., The Economics of Money, Banking and Financial Markets, Global Edition 12th Edition, Pearson, 2019.