Course Overview

This course deals with the monetary theory and policy in the context of modern economies. It addresses the role and definition of money in the economy, the microeconomic and macroeconomic aspects of money, the demand for money, the supply of money and interest rates, monetary policy making and instruments of monetary policy, and central banking at theoretical and practical levels. The course equips students with the skills to understand the operation of modern economies and the main monetary aggregates of an economy over time and across countries and its implications on economic welfare indicators.

Learning Achievement

The main objectives are to know the function of money and monetary policy in the functioning of modern economies. As such the course provides both the theory and practical context of how monetary aggregates influence economic activity in the modern world.

Competence

This course provides opportunities for students to build their skillls in understanding the operation of modern economies and the role of money and monetary policy in the process. This skill equips students with the necessary competence and quantitative skills to study the workings of modern economies.

Course prerequisites

Introductory macroeconomics and microeconomics.

Grading Philosophy

Class participation: 20 percent, Assignments:30 percent, and Final Examination: 50 percent.

Course schedule

Week 1: Introduction and Overview
Week 2: Money, Monetary Aggregates, and Interest Rate
Week 3. Central Banking and Monetary Policy Process
Week 4: Monetary Theory
Week 5: Quantity Theory of Money
Week 6: Theories of Money Demand
Week 7. Monetary Policy and Inflation
Week 8. Budget Deficits and Inflation
Week 9. Monetary Policy and Aggregate Demand
Week 10. Summary and Review
Topics of contemporary monetary policy will be introduced in class to stimulate discussion on current issues and debates in economic policy.

Course type

Lectures

Online Course Requirement

Instructor

Moges Abu Girma

Other information

It is expected that all students should participate actively in class discussion and submit assignments in time.

Site for Inquiry

Link to the syllabus provided by the university