Faculty of Business and Economics

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Monash University

Monash University Handbook 2011 Undergraduate - Unit

6 points, SCA Band 3, 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

FacultyFaculty of Business and Economics
OfferedClayton First semester 2011 (Day)
Coordinator(s)Dr Larry Cook


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.


The learning goals associated with this unit are to:

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


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

Chief examiner(s)

Larry Cook

Contact hours

3 hours per week


ECC2000 and ECC2010 or equivalent