(Revised November 2002)
Code: UPEN47-15-M Title:
Monetary Economics Version: 1
Level: M UWE
credit rating: 15 ECTS credit rating: 7.5
Module type: Standard
Owning Faculty: HLSS Field: Economics
Valid from: September 2004 Discontinued from:
Pre-requisites: None
Co-requisites: None
Excluded combinations: None
Learning outcomes:
Having successfully completed the module, students
should be able to:
·
Show a critical awareness of the latest literature and current
developments in monetary economics (components A and B).
·
explain the theoretical and practical difficulties involved in defining
monetary assets (component A)
·
distinguish between exogenous and endogenous paradigms of money supply
and show a critical awareness of the shortcomings of both. (component B)
·
explore critically the link between the exogenous paradigm and the
demand for money literature (component B)
·
appreciate the arguments underlying different views of the transmission
mechanism (component A)
·
take a critical view of the current policy framework including the roles
of independence and transparency
(component A)
·
contribute critically to the current debate about the measurement of
transparency (component B)
·
deal with a complex literature and show evidence of self-direction and
originality in tackling the problems thrown up by the latest insights in
monetary theory and policy (components A and B).
Syllabus outline:
·
Money: definitions and measurement. Advantages. Disputes as to role.
·
Exogenous and endogenous money. Current central bank practice.
Innovation and endogeneity.
·
Demand for money studies. Theoretical and empirical issues. The
connection with exogenous money.
·
The transmission mechanism. Classical and Keynesian views. The
irrelevance hypothesis. Current views
and practice.
·
The problem of credibility. Central bank independence and other
strategies. The arguments for transparency: inflation targeting etc. Measuring
independence and transparency.
Teaching and learning
methods:
Several different teaching and learning methods will be used.
Lectures will be used to communicate core material
and to deal with central concepts and models. Some lectures may be interactive,
giving a chance for questioning and debate on economic and financial issues
raised in this module. Use may also be made of video recordings, with student
tasks being linked where relevant to material in the videos.
Seminars will involve a number of different formats
as group reporting on case study material, formal debates, discussion of
assigned reading and presentations.
Indicative sources:
P Arestis and S C Dow (eds), 1992, Money,
Method and Keynes, Macmillan.
K Bain and P G A Howells, 2003, Monetary Economics, Palgrave.
C A E Goodhart, 1995, The Central Bank and the Financial System, Macmillan.
C J Green and D T Llewellyn, (eds),
1991, Surveys in Monetary Economic, (2
vols, Philip Allan.
P G A Howells and K Bain, 2002, The Economics of Money, Banking and Finance,
FT-Prentice Hall.
D Laidler, 1990, Taking Money Seriously,Philip Allan.
M K Lewis and P D Mizen, 2000,
Monetary Economics, Oxford.
The Manchester School (supplement), 2003, 71.
J Stiglitz and B
Greenwald, 2001, Towards a New Paradigm
in Monetary Economics, Cambidge UP.
Students will be expected to draw on current
journal articles from:
Applied Economics
Applied Financial Economics
Bank of England Quarterly
Bulletin
Economic Journal
ECB Monthly Report
European Economic Review
Journal of Post Keynesian
Economics
Scottish Journal of
Political Economy
And from the websites of the Bank of England, the
ECB, the BIS and the US Federal Reserve.
Assessment
Weighting between
components A and B (standard modules only)
A:
50%
B: 50%
ATTEMPT 1
First Assessment
Opportunity
Component A
Description of each element Element
weighting
1. Unseen
exam, 2 hours 50%
Component B
Description of each element Element
weighting
1. Individual
coursework assignment of up to 1500 words 50%
Second Assessment
Opportunity (further attendance at taught classes is not required)
Component A
Description of each element Element
weighting
1. Unseen
exam, 2 hours 50%
Component B
Description of each element Element
weighting
1. Individual
coursework assignment of up to 1500 words 50%
SECOND (OR SUBSEQUENT)
ATTEMPT: Attendance at taught classes is not required.
Specification confirmed
by
Module approved at VARSC
13.05.04.
Date
(Associate Dean/Programme
Director)