Monash University Handbook 2010 Undergraduate - Unit

Synopsis

Economics of financial assets, markets, intermediaries, regulation and innovation; money aggregates; behaviour of interest rates; loan 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.

Objectives

The learning goals associated with this unit are to:

• principal issues in contemporary monetary theory and policy
• nature and functions of the monetary system in a developed economy
• factors governing the relationship between monetary forces and economic activity
• principles, techniques and problems of implementing monetary policies;
• current controversies in monetary policy.

Assessment

Within semester assessment: 25%
Examination (2 hours): 75%

Chief examiner(s)

Larry Cook

Contact hours

3 hours per week

Prerequisites

ECC2000 and ECC2010 or equivalent

Prohibitions

ECC4366