EPOKA UNIVERSITY
FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES
DEPARTMENT OF ECONOMICS
COURSE SYLLABUS
COURSE INFORMATIONCourse 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 , Wednesday 10:30 - 13:30pm |
| 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: | On Thursday E312 11:30 - 13:15pm and E110 13:30 - 15:15pm |
| 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 in the framework of the relevant fundamental theories and rules. - 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, at offering 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. In addition some crucial dilemma for the Monetary policy makers are going to be analyzed. last but not least, hot issues like the impact of Brexit on the European integration, are also critically examined. |
|
COURSE OUTLINE
|
| Week | Topics |
| 1 | Introduction of the syllabus and Banking Safety Net |
| 2 | EUROPEAN BANKING UNION AND THE IMPORTANCE OF THE NEW RULES ON MONETARY MARKET (Credit Institutions and Financial Banking Groups ) |
| 3 | Main components of EBU, focusing on the Single supervisory and Resolution mechanism. |
| 4 | Benefits and the Drawbacks of EBU |
| 5 | EUROPEAN BANKING UNION, European Integration and the role of Brexit |
| 6 | Classical version of LOLR |
| 7 | Revision |
| 8 | Midterm |
| 9 | Revised Version of LOLR |
| 10 | Presentation of Group Projects. |
| 11 | ECB vs. FED and BOE, conventional and unconventional policies in times of crisis. |
| 12 | The Financial System and its functions - Money and Capital Markets |
| 13 | Asymmetric information |
| 14 | Revsion |
| Prerequisite(s): | NA |
| 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. "International Economics" Pearson, 2015. |
| Other References: | NA |
| Laboratory Work: | NA |
| Computer Usage: | NA |
| Others: | No |
|
COURSE LEARNING OUTCOMES
|
| 1 | Specify the institutional framework of the European Union's single banking market and how it is going to be influenced or affected after Brexit. |
| 2 | Examine the role and the structure of banking safety net as far as the malfunctions arising from the vicious cycle of sovereign banking nexus. |
| 3 | Assess and critically compare local and international money and capital markets as well as inter mediation 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, its functions and the malfunctions arising from some of them like the asymmetric information |
| 6 | Describe and explain the classical and revised versions of lender of last resort and examining the role of the central banks in providing the lender of last resort. |
| 7 | Compare the differences between conventional and unconventional monetary policies adopted and implemented by the central banking. |
| 8 | All the above mentioned are based on the relevant literature and high quality hot topics on the field and justified by the specific theories. |
|
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution) |
| No | Program Competencies | Cont. |
| Bachelor in Economics (3 years) Program | ||
| 1 | Students define the fundamental problems of economics | 5 |
| 2 | Students describe key economic theories | 4 |
| 3 | Students critically discuss current developments in economics | 3 |
| 4 | Students appropriately use software for data analysis | 4 |
| 5 | Students critically contextualize the selection of an economic problem for research within scholarly literature and theory on the topic | 4 |
| 6 | Students apply appropriate analytical methods to address economic problems | 4 |
| 7 | Students use effective communication skills in a variety of academic and professional contexts | 3 |
| 8 | Students effectively contribute to group work | 4 |
| 9 | Students conduct independent research under academic supervision | 5 |
| 10 | Students uphold ethical values in data collection, interpretation, and dissemination | 4 |
| 11 | Students critically engage with interdisciplinary innovations in social sciences | 5 |
| 12 | Student explain how their research has a broader social benefit | 3 |
|
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 | ||