MONETARY THEORY AND POLICY

BANK326

Course Code: BANK326
Semester: Sixth Term (Spring)
Theory+Practice: 3 + 0
ECTS: 4

Course Type

Compulsory Course

Course Level

Bachelor's Degree

Year of Study

Semester

Sixth Term (Spring)

ECTS

Name of Lecturer(s)

Learning Outcomes

At the end of this course, the students;

Be able to define money supply using fundamental concepts of macroeconomics and evaluate its role in the economy.
Analyze bank balance sheets and establish the relationship between money supply and bank reserves through the money and deposit multiplier mechanism.
Evaluate the balance sheet items of the Central Bank and explain the methods of monetary control.
Learn the theories of money demand and assess the impact of money on economic activities using the disciplines proposed by different approaches.
Evaluate the objectives (strategies) and tools of monetary policy and learn how monetary policy is formulated.
Understand the applications of monetary policy regimes in different countries.
Conduct monetary analysis within the framework of the market concept by evaluating money supply and money demand together.

Mode of Delivery

Face to face

Prerequisites

Recommended Optional Programme Components

None

Course Description

The nature and history of money, the role of the depository and credit institutions on creating money, the control of the money supply by the central banks, the theories of the demand for money and how money affects the economy are the main issues to be studied in the course

Course Contents

WEEK	TOPICS
1^st Week	Definition and functions of money
2^nd Week	The relation between money supply and bank reserves (money multiplier)
3^rd Week	The relation between money supply and bank reserves (money multiplier)
4^th Week	Balanced sheet of the central banks and the monetary control
5^th Week	Balanced sheet of the central banks and the monetary control
6^th Week	The theories of the demand for money (monetarist and keynesian Approaches)
7^th Week	Thje theories of the demand for money (monetarist and keynesian approach)
8^th Week	Midterm
9^th Week	The targets (strategies) and the instruments of monetary policy
10^th Week	The targets (strategies) and the instruments of monetary policy
11^th Week	Monetary policy Regimes and the Practice on different countries
12^th Week	Monetary analysis by studying money as a market phenomenon
13^th Week	Recap
14^th Week	Discussion

Recommended or Required Reading

Keyder, N. (2007). Para: Teori-Politika-Uygulama. Bizim Büro Basımevi. Ankara.
Wrightsman, D. (1983). An introduction to monetary theory and policy. Free Press; Collier Macmillan Publishers. London.

Planned Learning Activities and Teaching Methods

Lecture
Questions/Answers
Project
Presentation
Discussion

Assessment Methods and Criteria

	Quantity	Percentage (%)
Mid-term	1	30
Assignment	1	10
Project	1	10
Total(%)		50
Contribution of In-term Studies to Overall Grade(%)		50
Contribution of Final Examination to Overall Grade(%)		50
Total(%)		100

ECTS Allocated Based on Student Workload

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Midterm exam	1	1	1
Preparation for Quiz	2	4	8
Individual or group work	14	2	28
Preparation for Final exam	1	15	15
Course hours	14	3	42
Preparation for Midterm exam	1	10	10
Laboratory (including preparation)
Final exam	1	1	1
Homework	2	8	16
Total Work Load			121
Total Work Load / 30 (h)			4.03
ECTS Credit of the Course			4

Language of Instruction

Turkish

Work Placement(s)

Programme Qualifications / Learning Outcomes

	LO1	LO2	LO3	LO4	LO5	LO6	LO7
K1					X	X
K2	X	X	X	X
K3
K4
K5
K6		X		X			X
K7
K8
K9
K10