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
OfferedCaulfield First semester 2013 (Day)
Coordinator(s)Dr Qingyuan Du


This unit is designed to analyse the effect of money on the key economic variables such as interest rates, inflation, output and the workings of the banking sector. In addition, we will also examine the roles commerical banks and the central bank play in the process of money creation and implementation of monetary policies. The unit also teaches an economic approach to interpret today's information and policy decisions that can help you to predict future events and the effects those events can have on your own decisions.


The learning goals associated with this unit are to:

  1. develop a knowledge of the theoretical structure of an open economy with particular emphasis on monetary policy formulation and implementation
  2. acquire an understanding of the institutional structure of the banking system
  3. develop skills in analysis and prediction for the key economic variables when the economy is faced with internal and external market shocks
  4. be able to use an economic model to analyse policy measures


Within semester assessment: 40%
Examination: 60%

Chief examiner(s)

Contact hours

3 hours per week


Students must have completed ECF1100 and ECF2331 before undertaking this unit.