EC3332: Money & Banking I
AY2014/2015, Semester 1, Lecturer: Seet Min Kok
Course Coverage:
1. The Financial System & Money
2. Financial Structure & Institution
3. Financial Crises & Regulation
4. Interest Rates
5. Risk & Term Structure of Interest Rates
6. The Money Supply Process
7. Tools & Conduct of Monetary Policy
8. Quantity Theory, Inflation & Demand for Money
9. Monetary Policy Theory
10. Expectations in Monetary Policy
11. The International Role of Money
This module is the first course in money and banking. The first half of the module focus on the banking system while the second half focus on the tools and conducts of monetary policy.
The module begins with an introduction to the structure of the financial system and the functions of money. We then analyze the need for financial institutions, their management, and the role they play in financial crises. Next, the role of interest rates in the financial system and its risk and term structures are examined. The three theories that were proposed: Expectations Theory, Segmented Market Theory and the Liquidity Premium Theory, with the Liquidity Premium Theory combining the former two theories to explain the facts related to the term structure of interest rates.
The second half concerning monetary policy opens with an introduction to the money supply process and the tools and conducts of monetary policy. The Quantity Theory of Money is included to relate inflation rate, money growth and output growth. The analysis then focus on the comparative statics of monetary policy in various situations, as well as the role of expectations in the conduct of monetary policies. Lastly, we examined the role of money in the international markets, and how it relates interest rates and exchange rates in both domestic and foreign markets. The two basic regimes of exchange rates - fixed and flexible were also briefly introduced to give a more comprehensive overview of the international money market.
This is one of the least quantitative module despite its second course being very quantitative in nature. The module focus on various features of financial intermediaries from a microeconomic perspective before going through the qualitative aspects of monetary policy in the macroeconomic lens, all the while being supplemented by applications relating to the global financial crisis in 2008. Thus, it provides a basic yet thorough understanding for undergraduates who wish to learn more about financial intermediaries and money markets, and hence a recommended module for all economic undergraduates to take.
Workload: Heavy
Difficulty: Moderate
Grade: B+
Course Coverage:
1. The Financial System & Money
2. Financial Structure & Institution
3. Financial Crises & Regulation
4. Interest Rates
5. Risk & Term Structure of Interest Rates
6. The Money Supply Process
7. Tools & Conduct of Monetary Policy
8. Quantity Theory, Inflation & Demand for Money
9. Monetary Policy Theory
10. Expectations in Monetary Policy
11. The International Role of Money
This module is the first course in money and banking. The first half of the module focus on the banking system while the second half focus on the tools and conducts of monetary policy.
The module begins with an introduction to the structure of the financial system and the functions of money. We then analyze the need for financial institutions, their management, and the role they play in financial crises. Next, the role of interest rates in the financial system and its risk and term structures are examined. The three theories that were proposed: Expectations Theory, Segmented Market Theory and the Liquidity Premium Theory, with the Liquidity Premium Theory combining the former two theories to explain the facts related to the term structure of interest rates.
The second half concerning monetary policy opens with an introduction to the money supply process and the tools and conducts of monetary policy. The Quantity Theory of Money is included to relate inflation rate, money growth and output growth. The analysis then focus on the comparative statics of monetary policy in various situations, as well as the role of expectations in the conduct of monetary policies. Lastly, we examined the role of money in the international markets, and how it relates interest rates and exchange rates in both domestic and foreign markets. The two basic regimes of exchange rates - fixed and flexible were also briefly introduced to give a more comprehensive overview of the international money market.
This is one of the least quantitative module despite its second course being very quantitative in nature. The module focus on various features of financial intermediaries from a microeconomic perspective before going through the qualitative aspects of monetary policy in the macroeconomic lens, all the while being supplemented by applications relating to the global financial crisis in 2008. Thus, it provides a basic yet thorough understanding for undergraduates who wish to learn more about financial intermediaries and money markets, and hence a recommended module for all economic undergraduates to take.
Workload: Heavy
Difficulty: Moderate
Grade: B+