COURSE INFORMATION Course Title: MONEY AND BANKING

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 102	B	2	3	0	0	3	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:	Erda Cani
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:	N/A
Course Description:	BAF 102 - Money and Banking covers a range of topics in modern monetary economics, starting from microeconomic explanations for the existence of money and then proceeding to aggregate models of price and output fluctuations, the monetary transmission mechanism, the conduct of monetary policy, explanations for hyperinflation episodes and the relationship between monetary policy and asset returns. The course explains the function of money and monetary systems, monetary theory, its functions and relationship between money, prices, and the level of income; monetary policy in Albania and other countries; nature of banking and credit; structure and operations of commercial banks, other financial institutions and the Central Bank. The students should have a thorough understanding of the main models used by economists to understand the causes and consequences of monetary policy decisions.
Course Objectives:	Money and Banking covers a range of topics in modern monetary economics, starting from microeconomic explanations for the existence of money and then proceeding to aggregate models of price and output fluctuations, the monetary transmission mechanism, the conduct of monetary policy, explanations for hyperinflation episodes and the relationship between monetary policy and asset returns. The course explains the function of money and monetary systems, monetary theory, its functions and relationship between money, prices, and the level of income; monetary policy in Albania and other countries; nature of banking and credit; structure and operations of commercial banks, other financial institutions and the Central Bank. The students should have a thorough understanding of the main models used by economists to understand the causes and consequences of monetary policy decisions.Upon successful completion of this course, students will be able to: Understand the role and the function of money and banking.

COURSE OUTLINE

Week	Topics
1	Why Study Money, Banking, and Financial Markets An Overview of the Financial System .What Is Money? .
2	Understanding Interest Rates
3	The Behavior of Interest Rates
4	The Risk and Term Structure of Interest Rates
5	The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
6	An Economic Analysis of Financial Structure Banking and the Management of Financial Institutions
7	Banking Industry: Structure and Competition Economic Analysis of Banking Regulation Nonbank Finance
8	Midterm
9	Central Banking and the Conduct of Monetary Policy.Structure of Central Banks and the Federal Reserve System Multiple Deposit Creation and the Money Supply Process
10	Determinants of the Money Supply Tools of Monetary Policy
11	Conduct of Monetary Policy: Goals and Targets
12	International Finance and Monetary Policy The Foreign Exchange Market The International Financial System Monetary Policy Strategy: The International Experience
13	Demand for Money .The Keynesian Framework and the ISLM Model Monetary and Fiscal Policy in the ISLM Model
14	Aggregate Demand and Supply AnalysisTransmission Mechanisms of Monetary Policy: The Evidence Money and Inflation Rational Expectations: Implications for Policy

Prerequisite(s):
Textbook:	Economics of Money, Banking and Financial Markets: Global Edition 10th Edition Frederic Mishkin Mar 2013, ISBN13: 9780273765752 ISBN10: 0273765752
Other References:
Laboratory Work:	N/A
Computer Usage:	N/A
Others:	No

COURSE LEARNING OUTCOMES

1	Gives a full knowledge and understanding of the monetary policy and of the financial system
2	Gives the main empirical and analytical tools for analyzing the system
3	The ability to explains the function of money and monetary systems, monetary theory, its functions and relationship between money, prices, and the level of income
4	Through elaborate comparative analyze enables students to draw conclusions for the results of an effective monetary policy

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

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way.	3
2	They have knowledge about the finance and banking.	4
3	They have knowledge about the money and banking.	5
4	They have knowledge about the international finance and banking.	4
5	They have ability to use mathematical and statistical methods in banking and finance.	4
6	They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department.	3
7	They have necessary banking and finance skills that needed in private and public sector.	5
8	They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking.	4
9	They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance.	4
10	They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics.	3

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Homework	1	10
Midterm Exam(s)	1	30
Final Exam	1	50
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	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	10	10
Assignments
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