MONEY AND BANKING

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. Analyze the structure and functions of financial institutions – Describe the role of commercial banks, central banks, and other financial intermediaries in facilitating savings, investment, and the allocation of capital. Examine the workings of central banking and monetary policy – Understand how central banks implement monetary policy using tools such as interest rates, reserve requirements, and open market operations. Evaluate the transmission mechanisms of monetary policy – Analyze how changes in the monetary policy stance affect inflation, output, and employment through various transmission channels. Interpret the role of money and banking in economic fluctuations – Understand how monetary factors contribute to business cycles, financial crises, and long-term economic growth. Apply theoretical and empirical models – Use basic models such as the IS-LM, AD-AS, and money demand frameworks to assess macroeconomic conditions and policy effectiveness. Discuss contemporary issues in money and banking – Critically assess current topics such as inflation targeting, central bank independence, the zero lower bound, digital currencies, and financial regulation. Develop analytical and critical thinking skills – Interpret data, graphs, and policy documents related to monetary economics and banking systems.

See study program requirements

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.

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. Analyze the structure and functions of financial institutions – Describe the role of commercial banks, central banks, and other financial intermediaries in facilitating savings, investment, and the allocation of capital. Examine the workings of central banking and monetary policy – Understand how central banks implement monetary policy using tools such as interest rates, reserve requirements, and open market operations. Evaluate the transmission mechanisms of monetary policy – Analyze how changes in the monetary policy stance affect inflation, output, and employment through various transmission channels. Interpret the role of money and banking in economic fluctuations – Understand how monetary factors contribute to business cycles, financial crises, and long-term economic growth. Apply theoretical and empirical models – Use basic models such as the IS-LM, AD-AS, and money demand frameworks to assess macroeconomic conditions and policy effectiveness. Discuss contemporary issues in money and banking – Critically assess current topics such as inflation targeting, central bank independence, the zero lower bound, digital currencies, and financial regulation. Develop analytical and critical thinking skills – Interpret data, graphs, and policy documents related to monetary economics and banking systems.

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