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EC230: Economics of Money & Banking

  • Stefania Paredes Fuentes

    Module Leader
  • Eman Abdulla

    Module Lecturer
15 CATS - Department of Economics
Autumn Module

Principal Aims

To provide a more detailed discussion of the key issues in the theory and practice of financial markets, banking, monetary policy and, importantly, their interaction and to embed a strong practical and policy-related element.

Principal Learning Outcomes

Subject-specific and Professional Key General SkillsExpress their view about pertinent monetary and financial issues in a clear way orally and in writing. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading, problem sets, group projects; class discussions.The summative assessment methods that measure the achievement of this learning outcome are: Group assessment and Final Examination Subject Knowledge and UnderstandingUnderstand the main elements of the financial system and describe the roles played by different financial assets in this systemThe teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading, problem sets, group projects; class discussions.The summative assessment methods that measure the achievement of this learning outcome are: Group assessment and Final Examination Subject Knowledge and UnderstandingOutline and give a detailed justification of the main goals of monetary policy and also assess the relative merits of different countries' monetary policy institutions;The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading, problem sets, group projects; class discussions.The summative assessment methods that measure the achievement of this learning outcome are: Group assessment and Final Examination Subject Knowledge and UnderstandingCritically discuss and debate a range of current monetary issues.The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading, problem sets, group projects; class discussions.The summative assessment methods that measure the achievement of this learning outcome are: Group assessment and Final Examination Subject-specific and Professional Key General SkillsConduct individual and collaborative research using actual data and other resources. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading, problem sets, group projects; class discussions.The summative assessment methods that measure the achievement of this learning outcome are: Group assessment and Final Examination Subject-specific and Professional Key General SkillsHave a command of the language of macroeconomics and, particularly, feel comfortable in the interpretation and drafting of statements of a policy nature. Subject-specific and Professional Key General SkillsObtain official data on macroeconomic issues and use Excel, Stata and other tools to analyse such data.The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading, problem sets, group projects; class discussions.The summative assessment methods that measure the achievement of this learning outcome are: Group assessment and Final Examination Cognitive SkillsCritically analyse the arguments of others and learn to distinguish fact from conjecture.The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading, problem sets, group projects; class discussions.The summative assessment methods that measure the achievement of this learning outcome are: Group assessment and Final Examination Cognitive Skills Analyse complex issues using data as a guide; including the interpretation of data in the context of the theoretical models.The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, guided reading, problem sets, group projects; class discussions.The summative assessment methods that measure the achievement of this learning outcome are: Group assessment and Final Examination

Syllabus

The module will typically cover the following topics:The Financial System; Money and the Payments System; Banks and Money supply Risk; Bonds and the Determination of Interest Rates; Equities; Derivatives; Inside an Investment Bank; Inflation & The Business Cycle; The Monetary Transmission Mechanism; Banks and the Monetary Transmission Mechanism; Monetary Policy Rules – the theory and practice; Monetary policy and asset prices; EMU and its effect on Financial Markets

Context

Optional Module
L100 - Year 2, L1P5 - Year 1, L1PA - Year 1, LM1D (LLD2) - Year 2, V7ML - Year 2, V7MP - Year 2, V7MP - Year 3, V7MR - Year 2, V7MR - Year 3, V7MM - Year 4, LA99 - Year 2, LA99 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 2, L1L8 - Year 3
Pre or Co-requisites
Any of: EC107-30 Economics 1 OR EC136-15 Economics 1: Macro OR EC108-30 Macroeconomics 1 AND EC109-30 Microeconomics 1 AND EC131-15 Economics for Business EC107 or EC137 or EC108 and EC109 or EC131 with a mark of 65% in the final examination plus either EC229 or EC204 as a co- or pre-requisite
Restrictions
Not available to students who have previously studied IB235. Not to be studied in conjunction with IB3J8 or PO391.
Part-year Availability for Visiting Students
Available in the Autumn term only (1 x 4000 word group project 12 CATS)

Assessment

Assessment Method
Coursework (30%) + 2 hour examination (70%)
Coursework Details
Group Project (30%), 2 hour examination (70%)
Exam Timing
Summer

Exam Rubric

Time Allowed: 24 Hours.

Read all instructions carefully- and read through the entire paper at least once before you start entering your answers.

Answer ALL questions. Questions 1 and 2 are each worth 15 marks. Your answer for each question should be a maximum of 100 words. Questions 3 and 4 are each worth 35 marks. Your answer for each question should be a maximum of 500 words. Words beyond the stated word limit will not be counted.

Approved pocket calculators are allowed.

Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on the answer book.

Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.

Reading Lists