COURSE INFORMATION Course Title: MONETARY THEORY AND POLICY I

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
ECO 331	B	5	4	0	0	4	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Chrysanthi Balomenou
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Classroom and Meeting Time:	E B10 12:30-14:15
Course Description:	Monetary Theory and Policy I: Determining, implementing, and evaluating monetary and fiscal policy; effect on the economy, monetary targets and indicators; role of interest rates in understanding monetary policy, the effects of monetary policy on different sectors; role of fiscal policy in the economy.
Course Objectives:	The aim of this Thematic Subject is, mainly, to provide the students a clear understanding of the following concepts and mechanisms: - The economic significance, the definitions and the types of money, the quantity and the value of money as well as the determinants which affect the demand for and the supply of money. - The operation of the financial system both within a closed as well as in open economy. - The international and the European legal and regulatory framework with respect to the operation and regulation of the banking sector as well as of the monetary system. Highlighting the Financial Crises contagion, focusing on the crucial role for the maintenance of the financial stability, of: 1. The Lender of Last Resort (classical-contemporary performance). 2. The Financial/Banking Safety Net and the Institution of the European Banking Union which main objective is to break the vicious cycle of the Sovereign – Banking Nexus, between weak banks and heavily indebted countries. Basing on the above mentioned description, the course aims, to offer students a detailed viewpoint and informed insight into the monetary policy process, the regulation and supervision of the financial system, the emerging, from the financial crises, systemic risk contagion and its handling by the newly established regulatory legislation.

COURSE OUTLINE

Week	Topics
1	Introduction of the syllabus
2	BANKING SAFETY NET – EUROPEAN BANKING UNION AND THE IMPORTANCE OF THE NEW RULES ON MONETARY MARKET (Credit Institutions and Financial Banking Groups )
3	EUROPEAN BANKING UNION
4	The contemporal version of LOLR (Revision of its main principles)
5	Differences of setting and implementation of the monetary policy during the current financial crisis
6	Functions of financial markets
7	Asymmetric information
8	Revision
9	Midterm
10	Money Demand
11	Money Supply
12	Presentations
13	IS-LM curve
14	Taylor's Rule

Prerequisite(s):
Textbook:	Textbook: The Economics of Money, Banking and Financial Markets, F.S.Mishkin, 10.th ed., Pearson International Ed.; Howarth.D & Guaglia, L. “The Political Economy of European Banking Union”,2016, Oxford University Press;Goodhart.Ch, & Illing.G, “Financial Crises, Contagion, and the Lender of Last Resort” A Reader,2009, Oxford University Press, Arestis.P, & Sawyer.M,(Ed), “The Euro Crisis”, 2012, International Papers in Political Economy, Palgrave Macmillan, McDowell.D, “Brother can you spare a Billion? The United States, the IMF, and the International Lender of Last Resort, 2017, Oxford University Press. Other References: Lectures and the materials prepared by the Lecturer; nominated articles and recent speeches on Monetary Theory and Policy; Dimsdale.N, &Hotson.A, (Ed),”British Financial Crises since 1825”, 2014, Oxford University Press., Siebert, H (Ed), “The World’s New Financial Landscape: Challenges for Economic Policy”, 2001, Springer.
Other References:
Laboratory Work:
Computer Usage:
Others:	No

COURSE LEARNING OUTCOMES

1	Explain the definition and role of money in an economy and describe in detail the different types of money.
2	Review and analyze the main factors determining demand for money and money supply in a modern economy
3	Assess and critically compare local and international money and capital markets as well as intermediation in these markets.
4	Articulate and discuss the way in which the monetary system and financial institutions are controlled and supervised.
5	Analyze the structural characteristics of the financial system, as well as the instruments of monetary policy.
6	Identify the importance of the balance of payments accounts and how they interfere with the domestic monetary processes
7	Discuss the merits of the alternative exchange rate systems and how they affect the implementation and effectiveness of monetary policy
8	Present the work of Basel Committee on Banking Supervision (Basel I, II, III).
9	Specify the institutional framework of the European Union's single banking market
10	Illustrate the fundamental importance of money and financial intermediation in an economy

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Business Administration (3 years) Program

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Term Paper	1	20
Final Exam	1	40
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	4	64
Hours for off-the-classroom study (Pre-study, practice)	10	2	20
Mid-terms	1	12	12
Assignments	1	10	10
Final examination	1	14	14
Other	1	5	5
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5