ECC3660

Monetary economics

(BUS)

Mr Ross Booth and Dr Larry Cook

6 points + Two 1.5-hour lecture/tutorial sessions per week + First semester + Clayton + Prerequisite: ECC2000 and ECC2010 or equivalent

Synopsis: Economics of financial assets, markets, intermediaries, regulationa and innovation; money aggregates; behaviour of interest rates; loanable funds analysis; risk and term structure of interest rates; adverse selectionand moral hazard; independence of central banks; determinants of the money supply and the conduct of monetary policy in Australia; theories of money demand; money supply and economic activity; Keynesian-monetarist debate; transmission mechanisms of monetary policy; money and inflation; monetary implications of budget deficits; volatility in foreign exchange markets; the international financial system; capital controls; role of the IMF; international monetary policy strategy.

Assessment: In-course assessment: 25% + Examination (2 hours): 75%