AFF4101

Money markets: theory, measurement and policy

Dr Peter Pope

6 points
* 3 hours per week
* First, second semester
* Caulfield
* Prerequisites: ECX1710 and AFX1300 or equivalents

Objectives On completion of this subject students should comprehend the basic theories of monetary economics; understand how monetary policy is implemented in Australia and its impact on the money market, financial institutions, and the overall economy; understand the regulatory framework of this market; be able to evaluate and compare the consequences of different money market funding decisions.

Synopsis Topics include an introduction to money and monetary economy; economic analysis of financial markets; money market institutions and their role in the monetary economy; money and money supply process; the demand for money; the role of money markets in macroeconomic models; short-term money market and implementation of monetary policy in Australia; determination of interest rates and their term structure; the effect of economic news and policy announcements on financial markets; monetary policy under deregulated financial markets.

Assessment Research assignment: 30%
* Examination (2.5 hours): 70%