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Syllabus:

Economics BA (C), Money, Banking and Financial Markets, 7,5 Credits


General data

Code: NA004G
Subject/Main field: Nationalekonomi
Cycle: First cycle
Progression: (C)
Credits: 7.5
Progressive specialization: G1F - First cycle, has less than 60 credits in first-cycle course/s as entry requirements
Answerable department: Department of Business, Economics and Law
Answerable faculty: Faculty of Human Sciences
Date of change: 6/7/2013
Version valid from: 8/30/2013

Aim

To give students a thorough understanding of monetary theory, the effects of monetary variables on the macroeconomic system, the theoretical and empirical underpinnings of monetary policy analysis, the role of the Central Bank and the conduct of monetary policy in closed and open economies.

In summary, to give students a clear and thorough understanding of current theory and policy issues in the field of money, banking, and financial markets.

Course objectives

By the end of this course students should have understood:

-The meaning and functions of money.
-Factors affecting the demand and supply of money; the determination of the level of interest rates, the yield curve and the exchange rate, and the determinants (and costs) of inflation.
-The banking system, financial intermediation and the determinants of the money supply. Economic analysis of the financial structure.
-The theory and practice of monetary policy and the design of monetary policy in closed and open economies
-The choice of central banking institutions in the context of monetary policy design

Content

The course gives an introduction to studies in finance in general and financial markets specifically the course covers important issues to the conduct of monetary policy, monetary targeting and inflation tergeting, the behaviour of interest rates, and the foreign exchange market. After an introduction of basic concepts the financial markets, the banking firm and the management of financial institutions, structure of the banking system, and baning regulation is analysed. Further, the structure of central banks, and an overview of banking in industrialised countries follows. Finally, tools of Monetary policy, Monetary policy strategy, Money and infation, theory of rational expectation and market efficiency is treated.

Entry requirements

Economics Ba (A) 30 Credits and Ba (B) 22,5 Credits.

Selection rules and procedures

The selectionprocess is in accordance with the Higher Education Ordinance and the local order of admission.

Teaching form

Lectures and seminars.

Examination form

The examination will be a classroom examination at the end of the respective course. The examination can be accompanied, or replaced by exercises.

Grading system

The grades A, B, C, D, E, Fx and F are given on the course. On this scale the grades A through E represent pass levels, whereas Fx and F represent fail levels.

Course reading

Required literature

Mishkin F. S., The Economics of Money, Banking, and Financial Markets. International Edition, 7th´ed., London, Addison Wesley, Latest edition.

A compendium of articles.