COURSE INFORMATION
Course Title: MONETARY THEORY AND POLICY II
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
ECO 332 B 6 3 0 0 3 6
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 , 9:30-17:30
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: E314
Course Description: Monetary Theory and Policy II: 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 and the supply of money. - The operation of the financial system both within a closed as well as in open economy.
COURSE OUTLINE
Week Topics
1 Money (Functions, qualities, theoretical and empirical definitions)
2 Money supply.
3 Money Demand and relevant theories
4 IS-LM curve and Taylor Rule
5 International Economic Policy and Foreign Exchange Markets
6 Optimum currency areas
7 Revision
8 Midterm
9 Group presentations
10 Regulatory framework of international banking
11 Markets in Financial Instruments Directive - ΜiFID
12 Money Laundering
13 Liquidity
14 Novels of Basel Capital III
Prerequisite(s):
Textbook: Principles of money, banking and financial systems, Edward T. Merkel (2009)
Other References: The principles of banking, Moorad Choudhry (2012) Principles of banking law, 3rd edition, Ross Cranston, Emilios Avgouleas, Kristin van Zwieten, Christopher Hare, Theodor van Sante
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 and theories determining and governing 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 Discuss the merits of the alternative exchange rate systems and how they affect the implementation and effectiveness of monetary policy.
7 Illustrate the fundamental role and the criterion in order for a currency area to be characterized as an optimum one.
8 Present the work of Basel Committee on Banking Supervision (Basel I, II, III).
9 Identify the importance of the balance of payments accounts and how they interfere with the domestic monetary processes
10 Discuss the merits of the alternative exchange rate systems and how they affect the implementation and effectiveness of monetary policy. Analyze the characteristics case of optimum currency areas
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 5
3 Students critically discuss current developments in economics 5
4 Students appropriately use software for data analysis 5
5 Students critically contextualize the selection of an economic problem for research within scholarly literature and theory on the topic 5
6 Students apply appropriate analytical methods to address economic problems 5
7 Students use effective communication skills in a variety of academic and professional contexts 5
8 Students effectively contribute to group work 5
9 Students conduct independent research under academic supervision 5
10 Students uphold ethical values in data collection, interpretation, and dissemination 5
11 Students critically engage with interdisciplinary innovations in social sciences 5
12 Student explain how their research has a broader social benefit 5
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
30
Project
1
20
Final Exam
1
45
Attendance
5
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:
6