Module Catalogues, Xi'an Jiaotong-Liverpool University   
 
Module Code: ECO305
Module Title: Monetary Economics
Module Level: Level 3
Module Credits: 5.00
Academic Year: 2018/19
Semester: SEM1
Originating Department: International Business School
Pre-requisites: N/A
   
Aims
This is an advanced-level module on the theories of money, asymmetric information, financial intermediaries, and monetary policy that aims to provide students with an analytical framework in which they can understand and analyze current issues in macroeconomics. The module teaches students the tools and techniques to analyze the effectiveness of monetary policy under different circumstances and assumptions.
Learning outcomes 
A. Possess in-depth understanding and knowledge of the theory of money, and the relationship between money and the real economy in the short run and the long run.

B. Critically assess the Rational Expectations Hypothesis (REH) and how it affects the effectiveness of monetary policy.

C. Demonstrate a fundamental understanding of the Keynesian and New Keynesian theory regarding the effectiveness of monetary policy.

D. Explain the functions of financial intermediaries and the money supply process, and the theory of the term structure of interest rates.

E. Critically evaluate issues related to central bank independence, rules versus discretion, and the design of optimal monetary policy.

F. Apply core principles and economic reasoning on the tools and transmission mechanism of monetary policy in the profession of central banking.


Method of teaching and learning 
The module will be delivered by a combination of lectures and tutorials. Lectures are designed to introduce students to the basic tools and concepts of monetary economics, and to discuss key research papers related to central issues in monetary economics. Tutorials are delivered to supplement the lectures, discuss selected topics in detail, and help prepare students to conduct their own research on the assigned essay.
Syllabus 
• Theory of money; the classical heritage of monetary economics


• Keynesian theory of money, the IS-LM analysis, and the Phillips curve


• The financial market structure and the determination of the interest rate and the term structure


• Asymmetric information and financial intermediaries


• Rational expectations, the Lucas critique, and the New Classical Economics


• The Lucas Island model and the theory of policy ineffectiveness


• The New Keynesian approach to monetary economics


• Central bank and the money supply process


• Conventional tools and transmission of monetary policy


• Unconventional tools and transmission of monetary policy


• Rules vs. discretion; the time inconsistency of optimal plans


• Central bank credibility and the design of monetary policy

Delivery Hours  
Lectures Seminars Tutorials Lab/Prcaticals Fieldwork / Placement Other(Private study) Total
Hours/Semester 26     12      112  150 

Assessment

Sequence Method % of Final Mark
1 Individual Coursework 20.00
2 Group Projects 10.00
3 Final Exam 70.00

Module Catalogue generated from SITS CUT-OFF: 5/22/2018 9:43:06 PM