Monetary Theory and Policy (L1040)

15 credits, Level 6

Autumn teaching

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.


69%: Lecture
31%: Seminar


30%: Coursework (Essay)
70%: Examination (Multiple choice questions)

Contact hours and workload

This module is approximately 150 hours of work. This breaks down into about 44 hours of contact time and about 106 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.

We regularly review our modules to incorporate student feedback, staff expertise, as well as the latest research and teaching methodology. We’re planning to run these modules in the academic year 2024/25. However, there may be changes to these modules in response to feedback, staff availability, student demand or updates to our curriculum. We’ll make sure to let you know of any material changes to modules at the earliest opportunity.


This module is offered on the following courses: