Economics

Monetary Theory and Policy

Module code: L1040
Level 6
15 credits in autumn semester
Teaching method: Seminar, Lecture
Assessment modes: Multiple choice questions, Coursework

The module begins with Keynes's reformulation of monetary theory and the application of Keynes's ideas to economic depressions.

The bulk of the module deals with monetary policy in practice, and considers:

• the role of medium-term macroeconomic targets in policymaking
• how policy should respond to new information in the short-term
• money demand
• the money supply process; and
• how financial market imperfections should affect policymaking.

The last part of the module deals with banks, financial crises and financial regulation.

Module learning outcomes

• Demonstrate comprehension of the principles that underpin monetary policy, including the creation of money and the transmission channels of monetary policy;
• Apply the concepts of monetary policy in different scenarios and critically discuss potential solutions to applied economic problems;
• Critically evaluate the tools and approaches deployed in financial market regulation;
• Identify the theoretical and practical dimensions of international monetary integration and use appropriate frameworks for evaluating the effects of monetary policy.