| CODE | ECN5220 | ||||||||
| TITLE | Monetary Policy and the Financial System | ||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||
| MQF LEVEL | 7 | ||||||||
| ECTS CREDITS | 5 | ||||||||
| DEPARTMENT | Economics | ||||||||
| DESCRIPTION | The financial crisis of 2008/9 made many economists aware that conventional Monetary Economics did not take sufficient account of the role of the financial system in macroeconomic fluctuations. Indeed, in the wake of the global financial crisis of 2007-2010, there has been a renewed interest in central banking. While many believe that central banks had a leading role in contributing to the crisis, others disagree. Most, however, agree that in the future, central banks need to play a leading role in maintaining both monetary and financial stability. Against this background, this study-unit aims to provide a deeper understanding of and insights into the roles and functions of Central Banks, the theories behind their thinking, and actual operational practices. Moreover, this study-unit explores and develop the modern approach to Monetary Policy as well as take a closer look at Monetary Policy during the Covid 19 Pandemic. The unit should be of value to those who work in the commercial banking sector, central banks and the financial sector in general. It aims to provide practical as well as theoretical knowledge of the impact of monetary policy not only in normal times but also during financial crises. The study-unit will cover the following topics: - Introduction to Central Banking - Monetary Stability - Financial Stability - Sustaining Monetary and Financial Stability for the Next Era - Sources of Financial Sector Instability - Financial Sector Risk and the Global Financial Crisis - Financial Stability Policy - The Three Equation Model in the Open Economy - The Open Economy: The demand and supply sides - Fixed exchange rates and the Eurozone Study-unit Aims: - an overview of economic principles governing monetary policy and how it affects financial markets; - insights into theoretical, empirical and practical issues concerning the operation of monetary policy; - an introduction to important applied work in the monetary economics journal literature. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - understand how monetary policy affects financial markets; - explain how economic theory imposes testable restrictions on financial data; - relate to the established theoretical and empirical findings of how monetary policy affects the economy in general and financial markets in particular. 2. Skills: By the end of the study-unit the student will be able to: - develop analytical skills for the application of monetary policy and its impact on the financial sector; - apply monetary economics , monetary econometrics and macroeconomics to a very high level. Main Text/s and any supplementary readings: Main Texts: - Carlin W.& Soskice D, Macroeconomics: Institutions, Instability and Inequality (2024) Oxford University Press. - Moenjak, T, Central Banking: Theory and Practice in Sustaining Monetary and Financial Stability (2014), Wiley. Supplementary Texts/Readings: - Bindseil U. Monetary Operations and the Financial System (2014), Oxford University Press. - Bordo M. D., Cochrane J. H., & Seru A, (Editors). The Structural Foundations of Monetary Policy, 2018 Hoover Institution Press. -Cecchetti S. G. & Schoenholtz K.L Money Banking and Financial Markets, 5th Edition (2017), McGraw-Hill Education. - Mishkin F.S., (2016) The Economics of Money, Banking and Financial Markets, (11ed.), Oxford University Press. - Papademos L.D. & Stark J.,Enhancing Monetary Analysis (2010), European Central Bank. - Walsh, Carl (2017) Monetary Theory and Policy, (3rd edition) MIT Press, Cambridge, MA. |
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| ADDITIONAL NOTES | Pre-Requisite qualifications: B. Com Economics | ||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Charmaine Portelli |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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