ECF2331

Monetary theory and policy

Lecturer to be advised

6 points · First semester (Distance) · First and second semester (Caulfield) · Prerequisites: ECF1710 and ECF2710

Objectives On successful completion of this subject students should be able to use an analytical framework to evaluate the role of monetary policy in macroeconomic policy at an intermediate level; understand the impact of a floating exchange rate on the effectiveness of monetary policy; understand the role of the Reserve Bank in the implementation of monetary policy.

Synopsis A review of the Keynesian model of income determination; the development of an analytical framework as the basic tools for analysis of the macroeconomic impact of monetary policy; implementation of monetary policy by the Reserve Bank; the relationship between inflation and unemployment; the role of the balance of payments and the exchange rate in the evaluation of monetary policy; the interaction between the money market, the market for goods and services and the labour market; the optimal mix of monetary and fiscal policy.

Assessment (distance) Assignment (2000 words): 30% · Examination (2 hours): 70%
Assessment (on-campus) Assignment (1500 words) or mid-semester test: 20% · Examinaton (2 hours): 80%

Prescribed texts

To be advised

Back to the 1999 Business and Economics Handbook