Faculty of Business and Economics

Monash University

Undergraduate - Unit

This unit entry is for students who completed this unit in 2013 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

print version

6 points, SCA Band 3, 0.125 EFTSL

To find units available for enrolment in the current year, you must make sure you use the indexes and browse unit tool in the current edition of the Handbook.

FacultyFaculty of Business and Economics
Organisational UnitDepartment of Economics
OfferedClayton First semester 2013 (Day)
Coordinator(s)Dr Md Rabiul Islam


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: 75%

Chief examiner(s)

Contact hours

3 hours per week


ECC2000 and ECC2010 or equivalent