ECC3660

Monetary economics ( 6 points, SCA Band 2, 0.125 EFTSL)

Leader: Dr Ross Booth and Dr Larry Cook

Offered:
Clayton First semester 2006 (Day)

Synopsis: Economics of financial assets, markets, intermediaries, regulation and innovation; money aggregates; behaviour of interest rates; loanable funds analysis; risk and term structure of interest rates; adverse selection and 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%

Contact Hours: Three contact hours per week

Prerequisites: ECC2000 and ECC2010 or equivalent

Prohibitions: ECC4366