- Department: Economics and Related Studies
- Credit value: 20 credits
- Credit level: H
- Academic year of delivery: 2024-25
- See module specification for other years: 2023-24
This module enables third year undergraduate students to access a set of advanced topics in modern monetary theory.
Pre-requisite modules
Co-requisite modules
- None
Prohibited combinations
- None
Occurrence | Teaching period |
---|---|
A | Semester 2 2024-25 |
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.
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
Task | % of module mark |
---|---|
Closed/in-person Exam (Centrally scheduled) | 90 |
Essay/coursework | 5 |
Essay/coursework | 5 |
None
Task | % of module mark |
---|---|
Closed/in-person Exam (Centrally scheduled) | 90 |
Feedback will be provided in line with University policy
Champ, B. and Freeman, S., Modeling Monetary Economies, Cambridge, 2001
Freixas, X. and Rochet, J.-C., Microeconomics of Banking, MIT Press, 1997