Overview

This module will provide a global perspective on Central Banks. It will consider the money supply process; the tools and conduct of monetary policy. The nature of money demand will be studied, with consideration of both quantity theory and Keynesian theories within a broader aggregate demand and supply analysis. Various aspects of monetary policy theory will be examined, including the role of expectations and the importance of transmission mechanisms.

Assessment Strategy

-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives. -good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills. -excellent -A- to A+ (70%+): Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills. -another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Critically evaluate conventional and unconventional monetary policies, and explain the channels through which they are transmitted.

• Debate the case for rules versus discretion in monetary policy.

• Discuss the advantages and disadvantages of alternative monetary targeting regimes, including the evaluation of the choice between interest rate targets and money supply targets.

• Explain the operations of central banks and appraise the case for independence.

• Understand the forces affecting aggregate supply and aggregate demand.