By the end of this course, students will be able to: Understand the role of money in the economy – Explain the functions of money and distinguish between different types of money, including commodity money, fiat money, and digital currencies. Understand the operational framework of monetary policy – Describe the role that central banks have in setting interest rate in money market. Understand main features of bonds market –Term structure model, bonds premia, credit and liquidity risk. Analyze equity market valuation. Equity valuation, bubbles and equity premium puzzle. Evaluate the transmission mechanisms of monetary policy – Analyze how changes in the monetary policy stance affect inflation, output, and employment through various transmission channels. Discuss contemporary issues in money and banking – Financial Intertmediation, Regulation, Stablecoins. Develop analytical and critical thinking skills – Interpret data, graphs, and policy documents related to monetary economics and banking systems.

By the end of the course, students will be able to: Explain the role and functions of money in the economy. Describe the structure and operations of banking and financial institutions. Understand how central banks conduct monetary policy. Analyze the effects of monetary policy on inflation and output. Apply basic macroeconomic models to monetary and banking issues. Interpret current debates on monetary policy and financial regulation.

Benigno, Pierpaolo. 2025. Monetary Economics and Policy. Princeton University Press. Cecchetti and Shoenholtz. 2024. Money, Banking, and Financial Markets

Lectures

Exam

Minimum Grade Required 28/30 in the course