Unit Code: ECN701

Unit Name: Monetary Economics

Description: Within the context of deregulation and a greater role for the private sector, the study of monetary economics, (which encompasses the roles and functions of money, banking and financial markets) has emerged to be one of the most interesting areas in economics. The conduct of monetary policy takes centre stage in discussions about economic policy. This course builds on ECN601, examining the role of money, banking and the financial system in fostering growth and development. The primary goal is to train students in the use of the analytical tools of economics for critical examination of economic issues. The course is divided into two parts. The first is devoted to the advanced analysis of macroeconomic theory with special reference to monetary theory. Beginning with an examination of a static equilibrium model and running through to the analysis of long-run growth with full employment, this part of the course brings out clearly the fact that an understanding of how an economy works as a system requires detailed knowledge of the role of money in that system. The concepts, ideas and logic of the main schools of contemporary macroeconomic thought are examined and evaluated, and the relationship between theory and policy - monetary policy and macroeconomic policy as a whole is discussed. The second part of the course deals mainly with practical issues of money and banking - with financial institutions, the application of monetary instruments, and financial markets - both in national and international contexts

Learning Target Outcomes:

Prerequisite: ECN601

Prerequisite Sentence: or consent from HOD.

Credit Point: 15

Offered In: Semester 1