Monetary Economics

Course Content

Introduction (7 hours)

• Definition, functions and qualities money
• Evolution of money
• Evaluation of monetary standards: the Pros and Cons of a monetary economy

Money demand and supply (8 hours)

• Definition of money demand and supply
• Measurement and determinants of money supply
• Determinants of money demand
• Theories of money demand and supply

Financial markets (8 hours)

• Definition of financial markets
• Types of markets
• Financial markets Instruments
• Organized and unorganized markets in LDCs

Financial intermediaries (7 hours)

• Definition of financial intermediaries
• Contrasting Banking and none banking financial intermediaries
• Banking financial intermediaries
• Commercial banks and credit creation
• Determinants and Limitations of credit creation theory
• Central banks, functions and roles
• Monetary policy, tools and limitations

Theories of money demand and supply (8 hours)

• The Quantity theory, the Keynesian transaction demand for money, The Baumol-Tobin model and the monetarists’ views.
• The Hansen Hicksian IS-LM Analysis, including Equilibrium analysis, and the classical Vs Keynesian analysis.

International Monetary issues (7 hours)

• Foreign exchange rates- determination and fluctuations, effects and remedies.

• BOP and terms of trade
• Inflation and interest rate

Teaching and Learning Methods

·         Interactive Lectures

·         Reading Assignments

·         Group Discussions

·         Field Trips

·         Guided Discovery

·         Documentaries

Students’ Learning Activities

• Group Work
• Classroom Presentations
• Assignments