Monetary Economics - ECO00049H
Module summary
This module enables third year undergraduate students to access a set of advanced topics in modern monetary theory.
Related modules
Module will run
| Occurrence | Teaching period |
|---|---|
| A | Semester 2 2023-24 |
Module aims
The purpose of this advanced undergraduate module is to provide strong foundations in modern monetary theory so that students are able to appreciate the nuances of various policy debates.
Monetary Economics builds on models of individual behaviour to develop a model that is well understood - the perfectly competitive model - where there are no frictions, resources are allocated efficiently and there is no role for money. It then identifies the key elements of that model and specifies the extent to which it can be generalized.
With that in hand, it proceeds to set up models that have certain imperfections and thereby generate a role for money and monetary policy. Specifically, it considers the importance of expectations, liquidity constraints, missing markets, uncertainty, imperfect information and enforceability. It also studies certain aspects of central banking and policy. All the models developed have foundations in microeconomics completed with either a general equilibrium focus or a game theoretic one.
Module learning outcomes
On completing the module a student will be able to understand:
-
When there is a role for money
-
Some aspects of monetary policy that are related to the optimum quantity of money
-
Some aspects of liquidity
Indicative assessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 90 |
| Essay/coursework | 5 |
| Essay/coursework | 5 |
Special assessment rules
None
Indicative reassessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 90 |
Module feedback
Feedback will be provided in line with University policy
Indicative reading
Champ, B. and Freeman, S., Modeling Monetary Economies, Cambridge, 2001
Freixas, X. and Rochet, J.-C., Microeconomics of Banking, MIT Press, 1997