Money and Banking

Module title	Money and Banking
Module code	BEE2037
Academic year	2023/4
Credits	15
Module staff	Dr Martha Omolo (Convenor)

Duration: Term	1	2	3
Duration: Weeks	11

Number students taking module (anticipated)	280

Module description

This module undertakes a detailed analysis of various topics within the field of monetary economics, including the management of financial institutions and the economic analysis of financial regulation. The module also explores the main objectives of a Central Bank and investigates how Central Banks design and implement appropriate monetary policy strategies in line with meeting their primary objectives. The process of exchange rate determination is also examined using an asset based approach.

Module aims - intentions of the module

The aims of this module are to:

Provide you with a solid understanding of various topics within the fields of Monetary Economics, Central Banking, and International Finance.
Help you to understand contemporary issues within the above-mentioned areas and use this understanding to debate the appropriateness of various policy responses by the relevant authorities.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

1. Assess the structure and management of financial institutions within the world economy
2. Explain the theories, tools and strategies available to monetary authorities, and how they can be used and applied when conducting monetary policy changes.
3. Explain how exchange rates can be determined using an asset based approach.
4. Compare the effects of macroeconomic policies under differing exchange rate systems.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

5. Assess the appropriateness of policies aimed at various economic and financial market problems.
6. Develop the ability to collect informational resources including data and evaluate these resources to address financial market challenges.

ILO: Personal and key skills

On successfully completing the module you will be able to...

7. Improve reasoning ability.
8. Demonstrate the ability to communicate effectively.
9. Apply collective problem-solving skills to a team challenge.
10. Apply teamwork skills to complete a group task.

Syllabus plan

Indicative content includes:

PART 1: MONEY

Money
An overview of cryptocurrencies

PART 2: FINANCIAL INSTITUTIONS, CENTRAL BANKING AND CONDUCT OF MONETARY POLICY

Banking and the Management of Financial Institutions
Central Banking
The Tools of Monetary Policy
The Conduct of Monetary Policy: Strategy and Tactics
Monetary Policy in Practice: Inflation Targeting

PART 3: FINANCIAL INNOVATION AND INCLUSIVITY

Mobile banking and money
What happens when financial innovation turns toxic?

PART 4: INTERNATIONAL FINANCE AND MONETARY POLICY

The Foreign Exchange Market
Eurozone governance, sovereign risk and the banking system (Monetary Policy in an Open Economy under Fixed Exchange Rates)

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
31	119	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled learning and teaching activities	22	Lectures
Scheduled learning and teaching activities	9	Tutorials
Guided Independent Study	119	Reading, preparation for classes and assessments.

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
40	60	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Average of homework tasks	10	20 minutes	1-8	On ELE
Group Work	30	Group submission up to 2500 words plus an individual reflective piece up to 500 words per group member	2-10	Final grade and online feedback on ELE
Final examination	60	2 hours	1-8	Final grade; feedback and indicative solutions posted on ELE

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
Average of homework tasks (10%)	Average of homework tasks (20%)	1-8	Referral/Deferral Period
Group work (30%)	Individual assignment up to 2500 words (30%)	2-8	Referral/Deferral period
Final examination (50%)	Final exam (50%) (Two hours)	1-8	Referral/Deferred period

Re-assessment notes

Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.

Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 40%

Indicative learning resources - Basic reading

Prescribed Text:

Mishkin, F.S. 2021.?The Economics of Money, Banking, and Financial Markets, 13th Edition. Pearson Education Limited.
Carlin, W. and Soskice, D. J. 2015,?Macroeconomics: Institutions, Instability and Financial System. Oxford University?Press: UK.

Other consulted texts:

e-journals will be provided on the module’s ELE page.
Financial Times and The Economists articles.
Relevant websites and articles will be posted on the module’s ELE page.

Key words search

Central banks, Monetary Policy, Financial innovation, Exchange Rates

Credit value	15
Module ECTS	7.5
Module pre-requisites	BEE1029 or (BEE1036 and BEE1037)
Module co-requisites	BEE2038 and BEE2039 or BEE2025 and BEE2026
NQF level (module)	5
Available as distance learning?	Yes
Origin date	15/03/2018
Last revision date	03/02/2024