OFFICE OF ACADEMIC AFFAIRS
Reference No. : XMUM.OAA - 100/4/5-V2.0
Effective Date : 15 JULY 2020
TEACHING PLAN
1. Course Name
Monetary Policy and Financial Supervision
2. Course Code
FIN 209
3. Credit Value
4
4. Academic Session
2022/23
5. Lecturer(s)
LEE WENG CHANG
6. Tutor(s) (if any)
-
7. Course Learning
Outcomes (CLO)
The objectives of this course are to:
CLO 1 Understand the issuing and circulation of money in the
economy, monetary policy, banking regulation and
supervision, and foreign exchange transactions and risks.
CLO 2 Evaluate and apply learned concepts and theories. 2.
Know the basic structure of central bank system, and its
functions.
CLO 3 Know basic monetary theories and instruments: how do
they work and how will they affect the economy.
CLO 4 Understand the supervision function of the central bank:
its reasons and the aims.
8. Sequence of
planned lessons
Week 1
Topics
Chapter 1: Introduction
Week 2
Chapter 2: The Function of the Central Bank
 The Function of Central Bank
Week 3
Chapter 2: The Function of the Central Bank
 The Independent of the Central Bank
Chapter 3: Central Bank Balance Sheet
 Money and money supply
Week 4
Week 5
Week 6
Week 7
XMUM.OAA - 100/4/5-V2.0
Chapter 3: Central Bank Balance Sheet
 Central bank and its balance sheet
Chapter 4: Monetary Policy and Macroeconomics
Chapter 5: The aim of Monetary Policy
 Nature of short-term and long-term production cost
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Week 8
Chapter 5: The aim of Monetary Policy
 Factors that will influence the long-term production cost
 Revenue and profit maximization principle
Week 9
Chapter 6: The Instruments of Monetary Policy
 Reserve against deposit system
 The adjustment of the interest rate
Week 10
Chapter 6: The Instruments of Monetary Policy
 Open market operation
Chapter 7: The Foreign Exchange Reserve of the Central Bank
 The central bank and the international economic
relationship
 The foreign exchange reserve
Chapter 8: The Central Bank and the Financial Supervision
Week 11
Week 12
Week 13
Week 14
Week 15
9. Required
Materials
(including
equipment &
technology)
Chapter 9: The Supervision on Financial Markets
 The financial markets
 The instruments of supervision of financial markets
Chapter 10: The Conducct of Monetary Policy: Strategy and
Tactics
 The Taylar Rule Model
 Rule vs Discretion
Chapter 10: The Conducct of Monetary Policy: Strategy and
Tactics
 Monetary Strategy in practice: Case study
No.
List of Practical Activities
Activities:
 Case study analysis
1.
Laboratory:
 N/A
Materials/ Software used:
 N/A
2.
3.
10. Assessments
Continuous Assessment

Assignment
25%

Test
25%
Final Assessment

XMUM.OAA - 100/4/5-V2.0
50%
Final Examination
50%
50%
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11. Assessments that
align to Course
Learning
Outcomes (CLO)
Assessment
CLO 1 CLO2 CLO3 CLO4 CLO5
Continuous Assessment

Assignment
√

Test
√
√
√
√
√
√
√
√
√
√
√
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Final Assessment

Final Examination
12. Main Reference(s)
1. K. Bain, P.G.A. Howells. Monetary Economics: Policy and Its
Theoretical Basis, Palgrave Macmillan, 2013
2. John E. Silvia. Dynamic Economic Decision Making: Strategies
for Financial Risk, Capital Markets, and Monetary
Policy,1ed,Wiley,2011
3. Peter Bernholz, Roland Vaubel. Explaining Monetary and
Financial Innovation: A Historical Analysis,1ed,Springer
International Publishing,2014
4. A. Joanne Kellermann, Robert H. J. Mosch, Financial
Supervision in the 21st Century,1ed,Springer-Verlag Berlin
Heidelberg,2013
13. Additional
Reference(s)



XMUM.OAA - 100/4/5-V2.0
Jordi Galí. Monetary Policy, Inflation, and the Business Cycle
[M]. Princeton University Press, 2009.
Frederic S. Mishkin, The Economics of Money, Banking and
Financial Markets, 9thedition Pearson Education Limited, 2012.
S. Eijffinger, Donato Masciandaro. Financial Regulation and
Supervision: A post-crisis analysis [M]. Oxford University Press,
2012.
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XMUM.OAA - 100/4/5-V2.0
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