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TR

MONETARY POLICY AND ROLE OF CENTRAL BANK

Course
INBA501 - MONETARY POLICY AND ROLE OF CENTRAL BANK
Department
International Banking and Finance - English - Master
Course Type
Course
Status
Required
Language
English
Credit
3
ECTS
0
T+P+L
3 + 0 + 0
Course Coordinator(s)
Asst. Prof. Dr. Murad Abdurahman BEIN
Prerequisite
-
Keywords
-

Course Description

Financial Markets, Banking, and Monetary Policy provides a comprehensive introduction to the financial system, including the markets, institutions, and mechanisms of finance, as well as the role of the central bank and monetary policy. The economic principles underlying finance are woven through the chapters, and the course includes an insightful introduction into the causes of and responses to the recent financial crisis. After the completion of this course students will have detailed information regarding the following topics; Overview of the Financial System, The Special Role of Commercial Banks, The Pricing of Financial Assets, Factors Affecting Yields, Principles of Portfolio Selection and Efficient Markets, The Money Market, The Bond Market, Securitization, The Mortgage Market, The Equity Market, Central Banking and the Federal Reserve, Monetary Policy: The Basics, Monetary Policy: Challenges Faced by Policymakers.

MONETARY POLICY AND ROLE OF CENTRAL BANK

Evaluation Tools (Active Term)

Item Type Weight (%)
Midterm Midterm 30
Final Final 40
Project Project 30
Total 100

Course outcomes

  1. 01 Explain the role and responsibilities of Central banks
  2. 02 Discuss the goals of Central Bank in conducting monetary policy
  3. 03 Explain how Central Banks conduct monetary policy and the various policy tools at their disposal.
  4. 04 Explain how Central Banks measure and manage the money supply.
  5. 05 Explain how Central Banks influence the level of interest rates in an economy
  6. 06 Describe the transmission process for monetary policy.
  7. 07 Explain International finance and Monetary policy

Course Syllabus

Week Topic
Week 1 Overview of of the financial system Chp 1&2
Week 2 What is Money and the meaning of Interest rates ch3 and 4
Week 3 Central Banks Ch14
Week 4 The Money supply Process Ch15
Week 5 Tools of Monetary Policy Ch15
Week 6 The Conduct of Monetary Policy ch16
Week 7 The Conduct of Monetary Policy: Strategy and Tactics Ch17
Week 8 Quantity theory, Inflation and the Demand for Money Ch20
Week 9 The IS Curve Ch21
Week 10 The Monetary Policy and the Aggregate Demand Curves Ch 22
Week 11 Aggregate Demand and Supply Analysis Ch23
Week 12 Monetary Policy Theory Ch24
Week 13 The Role of Expectations in Monetary policy
Week 14 Transmission mechanisms of monetary policy
Week 15 International Finance and Monetary Policydence The Debate over the importance of money in economic fluctatuations

Reference Books & Course Materials

  1. 01 Frederick S. Mishkin The Economics of Money, Banking and Financial Markets 11th Edition Pearson

Learning Outcomes

No learning outcomes have been defined.

Program Outcomes

  1. P01 PO1: Endowed with the ability to evaluate self-learning needs adapted to the principle of lifelong learning.
  2. P02 PO2: Established a general knowledge of economics sufficient to conduct independent and original research on economic issues and suggest relevant economic policies to solve both microeconomic and macroeconomic problems.
  3. P03 PO3: Reached the required knowledge and skills; to understand the foundations, basic framework, and complexity of economic theories; to recognize the contribution and limitations of traditional theories; to explore modern economic theories and modeling of more complex situations; and to apply introduced theories in a discussion of research interests.
  4. P04 PO4: Engaged in scientific inquiry, critical thinking, using quantitative and qualitative methods to demonstrate the ability to analyze and make recommendations for complex contemporary economic issues.
  5. P05 PO5: Demonstrated the development of critical thinking and scientific reasoning skills with an attention to ethical aspects of data analytics, and been aware of acting in accordance with the ethical standard of scientific research and professional work.
  6. P06 PO6: Been equipped with the ability to plan, take responsibility in economic projects individually or within a team for economic decision making for a variety of economic concepts in national and global environment.
  7. P07 PO7: Endowed with the ability to communicate and explain effectively economic arguments both in oral and written ways to those with scholar knowledge and non-experts.
  8. P08 PO8: Been able to apply economic theory and methods in real life situations which is of primary importance to generate relevant economic policies and conduct economic research.
  9. P09 PO9: Developed an ability to conduct economic research and write a thesis connecting the theory and empirical conditions with particular attention to ethical perspectives and social responsibilities.

Po-Lo Matrix

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