Money and Banking 2
This module explores the functions of a Central Bank and the design of macroeconomic policy. It also examines exchange rate systems and the development of the International Monetary System.
The course is split between central banking and international finance. Reference will be made to specific data-based examples throughout the course..
All of the resources for this module are available on the ELE (Exeter Learning Environment).
Students develop a number of transferable skills, including problem solving, numeracy, essay writing, creativity, and the ability to analyse macroeconomic.
Full module specification
|Module title:||Money and Banking 2|
BEE2026 or BEE2024, BEE2028 highly recommended
|Duration of module:||
Duration (weeks) - term 2: |
The aims of this module are to undertake a detailed analysis of various topics in the fields of Monetary-Macro Economics, Central Banking, and International Finance. The approach is geared towards analyzing instruments available to the Monetary Authorities, although there will be some discussion of fiscal policy.
ILO: Module-specific skills
- 1. know an enhanced understanding of the following issues: What are the objectives of monetary policy and how is it conducted in practice? What determines exchange rates? How do the effects of monetary and fiscal policy differ between a fixed and flexible exchange rate regime?
ILO: Discipline-specific skills
- 2. analytical skills, specifically the ability to use mathematical models to analyse economic problems.
ILO: Personal and key skills
- 3. writing good English, improving reasoning ability, public speaking, knowledge of the dataset and the analytical product published by BoE.
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Online forum||Open on ELE throughout the module||1-3||Response on forum from lecturer|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Exam||75||2 hours||1-3||To include one of the following: Mark, Sample answers, written or verbal feedback, individually or group|
|Mid-Term||25||1 hour||1-3||To include one of the following: Mark, Sample answers, written or verbal feedback, individually or group|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Exam and Mid-Term||2 hour Exam||1-3||August/September assessment period|
The module is divided in 3 parts.
Part 1: Building Blocks of a Macro Model
• Business Cycle Facts
• Money Demand
Part 2: Closed Economy Model
• Propagation of Shocks
• Stabilization Policy
Part 3: Open Economy Model
• Aggregate Demand and Supply in an Open Economy
• Policy Options in an Open Economy
Indicative learning resources - Basic reading
Basic reading (selected chapters from part II):
Introducing Advanced Macroeconomics: Growth and Business Cycles 2/e
Peter Sorensen, Hans Whitta-Jacobsen
Other books (which may aid intuition)
Money, Banking and Financial Markets by Stephen G. Cecchetti
The textbook recommended for Part II is:
International Economics: Theory and Policy by Paul R. Krugman and Maurice Obstfeld
Module has an active ELE page?
Last revision date