Monash University Handbook 2010 Undergraduate - Unit

Synopsis

The concept of money, the financial system and financial intermediation, the nature and roles of the Reserve Bank, banks and non-bank financial institutions. The role and interaction of financial markets and the determination of interest rates, foreign exchange markets and the determination of exchange rates, the interaction between foreign exchange and money markets and implication for policy and APRA's prudential regulation.

Objectives

The learning goals associated with this unit are to:

• extend and deepen their knowledge of the theoretical structure of an open economy, with particular emphasis on monetary policy formulation and implementation
• acquire an understanding of the institutional structure of the Australian financial system, in order to develop skills in creative analysis and prediction when faced with internal and external market shocks, achieved within the framework of a general equilibrium model that allows for competitive international capital markets and floating exchange rates.

Assessment

Within semester assessment: 30%
Examination (3 hours): 70%

Chief examiner(s)

Ratbek Dzhumashev

Contact hours

3 hours per week

Prerequisites

ECW1101 and ECW2120 or ECW2730 or equivalent