| CODE | ECN3201 | ||||||||
| TITLE | Monetary Policy | ||||||||
| UM LEVEL | 03 - Years 2, 3, 4 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 6 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Economics | ||||||||
| DESCRIPTION | The study-unit will tackle the question of how recent financial turmoil affected economies. What are the causes of inflation and deflation? Why do some countries experience sharp swings in exchange rates? What should central banks do in such circumstances? To answer these questions, the unit provides a set of tools to analyze the interaction between monetary policy in normal and abnormal times, the real economy and the financial sector. It will combine a study of relevant theory with applications to recent events and policy debates. Topics to be covered include: - The transmission mechanism of Monetary Policy - Monetary policy strategies - The liquidity trap and policy responses: quantitative easing, credit easing and other unconventional policies - Impact of Monetary Policy on Financial Markets - Fiscal and monetary policy linkages: government debt and inflation risks - Banking and financial intermediation - Current account dynamics - Exchange rates and currency crises - Deleveraging crisis - Policy response to the financial crisis Study-Unit Aims: The study-unit aims to provide: - An overview of monetary policy in both normal and abnormal times; - A deeper understanding behind the recent non-conventional monetary policy; - A better insight into the policies of the European Central Bank; - A comprehensive grasp of the implications of the European Monetary Union. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will: - Be able to understand the evolution of financial crises; - Have knowledge of the financial stability threats that such crises lead to; - Have detailed insights into the impact of monetary policy on the economy, especially in times of financial crises. 2. Skills: By the end of the study-unit the student will: - Be able to apply economic theory to the monetary and financial sectors; - Have a capacity to disentangle the various views on the European Monetary Union; - Be proficient in assessing the impact of Monetary Policy on the economy in both normal and abnormal times. Main Text/s and any supplementary readings: - Mercier, P. & Papadia F.(2011) The Concrete Euro, Oxford University Press. - Bindseil U. Monetary Operations and the Financial System (2014), Oxford University Press. - Mishkin F.S., (2016) The Economics of Money, Banking and Financial Markets, (11ed.), Oxford University Press. - Walsh, Carl (2010) Monetary Theory and Policy, (3rd edition) MIT Press, Cambridge, MA. |
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| 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 2023/4. It may be subject to change in subsequent years. |
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