Economics

Monetary Theory and Policy

Module code: L1040
Level 6
15 credits in autumn teaching
Teaching method: Seminar, Lecture
Assessment modes: Unseen examination

The module begins with Keynes's reformulation of monetary theory and the application of Keynes's ideas to economic depressions.

The bulk of the module deals with monetary policy in practice, and considers:

  • the role of medium-term macroeconomic targets in policymaking
  • how policy should respond to new information in the short-term
  • money demand
  • the money supply process; and
  • how financial market imperfections should affect policymaking.

The last part of the module deals with banks, financial crises and financial regulation.

Module learning outcomes

  • Have demonstrated a systematic understanding of those principles at the forefront of economics as they relate to economic problems and issues
  • Have demonstrated a systematic understanding of an appropriate number of specialised fields of economics (e.g. labour economics, development economics)
  • Be able to use the power of abstraction to focus upon the essential features of an economic problem and to provide a systematic framework for the coherent and critical evaluation of the effects of policy or other exogenous events.
  • Be able to analyse an economic problem or issue using an appropriate theoretical framework, recognise its limitations and appreciate uncertainties around such analyses.