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 , Tuesday 14:00 - 16:00 pm
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 Friday A/005 08:45 - 10:30 am and E/214 10:45 - 13:30 pm
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 COVID-19 on the monetary strategies.
COURSE OUTLINE
Week Topics
1 Introduction of the syllabus, academic writing rules and discussion on the indicative project topics
2 Banking Safety Net and its main components
3 The new institution of the European Banking Union (EBU) : scope / aims and structure
4 Benefits and Drawbacks of EBU
5 Lender of Last Resort Facility (LOLR): Classical version
6 Lender of Last Resort Facility (LOLR): Revised Version
7 Revision
8 Midterm
9 Presentation of Group Projects
10 ECB vs. FED and BOE, conventional and unconventional policies in times of financial crisis
11 Monetary policies' new transmission channels as a response to COVID-19 pandemic crisis in both sides of the Atlantic
12 Comparison analysis between ECB's and FED's responses to the pandemic crisis
13 The sovereign banking nexus: ways of managing
14 Revision
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 COVID-19.
2 Examine the role and the structure of banking safety net.
3 Assess and critically analyze the vicious cycle of sovereign banking nexus and learn how to manage it..
4 Articulate and discuss the way in which the monetary system and financial institutions are controlled and supervised.
5 Compare the differences between conventional and unconventional monetary policies adopted and implemented by the central banking especially in periods of crisis (financial - pandemic).
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 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 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. 3
3 They have knowledge about the money and banking. 4
4 They have knowledge about the international finance and banking. 2
5 They have ability to use mathematical and statistical methods in banking and finance. 2
6 They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department. 1
7 They have necessary banking and finance skills that needed in private and public sector. 3
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. 3
9 They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance. 3
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
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