The analysis of money supply determination; the interaction of the money-using public, commercial banks, and the Federal Reserve System; introduction to monetary theory and the impact of money on the level of economic activity; evaluation of monetary policy.
Scope and Objectives
This course is designed to provide students with an understanding of the nature of money, the commercial and central banking system, and the role of money and monetary policy. This includes analysis of money supply determinants and the interaction of the money-using public, commercial banks, and the Federal Reserve System. In addition, the course provides an introduction to monetary theory and the effect of money on economic activity.
At the end of this course, Specifically, you should be able to:
- analyze how interest rates are determined and understand their importance as economic indicators and in the transmission of monetary policy
- examine financial market efficiency and the role of asymmetric information
- understand the structure of the banking system and how it has evolved over time
- discuss central banking in the U.S. and how monetary policy affects financial markets and the economy as a whole.
By the end of the semester, you will have a general understanding of financial markets, monetary policy, and how the financial system is connected to the macroeconomy.