University of Sussex Business School

Monetary Theory and Policy (L1040)

Monetary Theory and Policy

Module L1040

Module details for 2019/20.

15 credits

FHEQ Level 6

Module Outline

The module begins with Keynes's reformulation of Classical monetary theory and the application of Keynes's ideas to economic depressions, especially the Great Recession which started in 2008. The second part of the module concerns monetary policy in practice: inflation targetting, the use of the Taylor Rule in policymaking and the role of quantitative easing during the Great Recession. The last part of the module deals with the modern evolution of banking, with special emphasis on its role in triggering the 2008 financial crisis, and with banking regulation both pre- and post-crisis

Module learning outcomes

Demonstrate comprehension of the principles that underpin monetary policy, including the creation of money and the transmission channels of monetary policy;

Apply the concepts of monetary policy in different scenarios and critically discuss potential solutions to applied economic problems;

Critically evaluate the tools and approaches deployed in financial market regulation;

Identify the theoretical and practical dimensions of international monetary integration and use appropriate frameworks for evaluating the effects of monetary policy.

Coursework components. Weighted as shown below.
EssayT1 Week 8 75.00%
ObservationT1 Week 11 25.00%
Multiple Choice questionsSemester 1 Assessment60.00%

Submission deadlines may vary for different types of assignment/groups of students.


Coursework components (if listed) total 100% of the overall coursework weighting value.

TermMethodDurationWeek pattern
Autumn SemesterSeminar1 hour01111111111
Autumn SemesterLecture2 hours11111111111

How to read the week pattern

The numbers indicate the weeks of the term and how many events take place each week.

Dr Ingo Borchert

Assess convenor, Convenor

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