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
By the end of the module students will have been given the opportunity to: Understand the main elements of the financial system and describe the roles played by different financial assets in this system; Outline and give a detailed justification of the main goals of monetary policy and also assess the relative merits of different countries' monetary policy institutions; Critically discuss and debate a range of current monetary issues; Express their view about pertinent monetary and financial issues in a clear way orally and in writing; Conduct individual and collaborative research using actual data and other resources; Critically analyse the arguments of others and learn to distinguish fact from conjecture; Analyse complex issues using data as a guide; including the interpretation of data in the context of the theoretical models; Analyse complex issues using data as a guide; including the interpretation of data in the context of the theoretical models; Obtain official data on macroeconomic issues and use Excel, Stata and other tools to analyse such data.
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
- Optional Module
- LM1D (LLD2) - Year 2, LM1D (LLD2) - Year 3, V7ML - Year 2, V7ML - Year 3, LA99 - Year 2, LA99 - Year 3, L100 - Year 2, L1L8 - Year 2, L1L8 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, V7MP - Year 2, V7MP - Year 3, L1P5 - Year 1, L1PA - Year 1, V7MR - Year 2, V7MR - Year 3, LM1H - Year 4, V7MM - Year 4
- Pre or Co-requisites
- EC107 or EC108; or EC131 with a mark of 60% in the final examination plus either EC204 or EC229 as a co-requisite
- 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 Method
- Coursework (30%) + 2 hour exam (70%)
- Coursework Details
- One assignment (4000-word group project) (30%)
- Exam Timing
Time Allowed: 2 hours.
Answer ALL questions in Section A (40 marks total). Answer ONE question in Section B (30 marks). Answer ONE question in Section C (30 marks). Answer Section A questions in one booklet, Section B questions in a separate booklet; and Section C questions in a separate booklet.
Approved pocket calculators are allowed.
Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book. If you answer more questions than are required and do not indicate which answers should be ignored, we will mark the requisite number of answers in the order in which they appear in the answer book(s): answers beyond that number will not be considered.
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.