FACULTY OF ECONOMICS
DEPARTMENT OF MANAGEMENT
COURSE
Code
BUS 532
Name
Money and Banking
Level
MA Graduate
Status
Number of ECTS Credits
Class Hours Per Week
Elective
7,5
3
Year
Semester
II
2012
Total Hours Per
Semester
45
Instructor
Erkan ILGÜN, PhD
Working Time:
Tuesday: 17.00 – 19.45
eilgun@ibu.edu.ba
1. LEARNING
OBJECTIVES
AND GOALS
2. STUDENT
ASSESSMENT
METHODS
3. TEXTBOOK(S)
4.
EXAMINATION
This course examines the dynamics of the money supply and money demand as
well as their relations with the rest of the macro-economy. The course intends to
focus on the role of banks and monetary policy (the Central Bank) in the money
supply process Topics covered include: the ability of the central bank to regulate
the supply of money and credit conditions; factors affecting the demand for
money; and the relationship between changes in the money supply and interest
rates and the impact of changes in each of these on other economic variables. The
aims of this course are to:
- provide students with an understanding of the role of banks and their
role in the monetary system;
- develop an understanding of the role of CBs and their conduct of
monetary policy;
- understand the objectives and consequences of monetary policy.
Assignment / Presentation
% 10 / % 10
Mid-Term Exam
% 30
Final Exam
%50
1. Cecchetti S. G.: Money, Banking, and Financial Markets 2nd Edition
Spring 2008, McGRAW – HILL
2. Mishkin,F.: The Economics of Money, Banking and Financial Markets 8th
edition, 2007
3. Jordi Gali, "Monetary Policy, Inflation, and the Business Cycle: An
Introduction to the New Keynesian Framework", Princeton University
Press, (Princeton NJ), 2008.
4. Walsh, Carl E., "Monetary Theory and Policy", MIT Press (2003) Second
Edition
5. Dean Croushore, Money and Banking: A Policy Oriented Approach
Houghton Mifflin Company, Boston, MA, 2007
You are NOT responsible for the dropped “Applications”, “Questions”, and
“Problems” of the assigned chapters unless specified. You are NOT responsible
for the dropped chapters and sections as specified below.
In the event of an emergency that could prevent you from taking an exam please
let me know well in advance (i.e. as soon as you discover the situation).
SCHEDULE OF LECTURES
Date
Class
Hours
Week 1
3
Week 2
3
Week 3
3
Week4
3
The risk and term structure of interest rates / The
stock marke
Week5
3
Economic analysis of financial structure / Banking
and management of financial institutions
Week 6
3
Week 7
Week 8
Topics
Why study Money and Banking?
An overview / What Is Money?
Understanding Interest Rates
Introduction
Money and Interest
Rates
(Financial markets)
The Behavior of Interest Rates
Structure of interest
rates and the stock
market
Financial Institutions
Banking industry / Banking regulation
MID – TERM EXAM
3
Multiple Deposit Generation and the Money Supply
Process
Week 10
3
Tools of Monetary Policy
Week 11
3
Conduct of Monetary Policy: Targets and Goals
Week 12
3
Week 13
3
Central banking
(Money Supply)
The Demand for Money
The Keynesian Framework and the ISLM Model
(SR, fixed prices transmission)
Week 14
3
Monetary and Fiscal Policy in the ISLM Model
Week 15
3
Aggregate Demand and Supply Analysis (SR to LR)
Week 16
3
Transmission Mechanisms of Monetary Policy
Week 17
3
Money and Inflation
Week 18
Rational Expectations: Implications for Policy /
Money Demand
Monetary Policy
3
Monetary Policy Strategy: The Inte. Experience
Week 19
3
The Foreign Exchange Market
Week 20
3
The International Financial System
Week 21
3
FINAL EXAM
International Finance
and Monetary Policy