Course: Monetary Economics (5201-531)

Persons:

• Prof. Dr. Michael Evers (verantwortlich)

Type of Course:

lecture

In-Class Hours Per Week:

2

Contents:

The course provides an introduction to monetary theory. lt develops the basic concepts and derives theoretical frameworks that allow to study questions like why there is money at all, what role serves money and what determines the demand for money. We address the classical monetary theory, the neutrality of money and inflation. The course also covers topics of optimal rate of inflation and optimal stabllization pollcies as weil as the mteraction between monetary and fiscal policy.
We learn about the role of commercial banks in the supply and creation of money, the market for reserves, and the role of banks in the transmission mechanism of monetary policy. The formal treatment will be employed to discuss the financial crises, the rote of the central bank as a lender of last resort, and unconventional monetary policies.

Course outline (tentative):
• Money & Credit: Theory and History
• lnterest Rates, Discounting, and Risk
• Money Demand
• Banking System and the Supply of Money
• Objectives and Tools of Monetary Policy
• Time Consistency and Credibility
• Channels of Monetary Transmission
• Liquidity Risk and Bank Panics
• Financial Crisis and Unconventional Monetary Policy
• Fiscal Aspects of Monetary Theory
• Cryptocurrency

Literature:

The lecture slides will be self-contained, integrating and extending material from multiple sources. As such, there is not one single textbook covering all the material to be presented and discussed in this course.

A tentative list of references for the course is: .........
- Champ, B., Freeman, S. & J. Haslag (2016), Modeling Monetary Economies, 4th Edition, Cambridge University Press.
- Mishkin, F. S. (2012), The Economics of Money, Banking and Financial Markets, 11th edition, Prentice Hall, Boston.
- Walsh, C. E. (2010), Monetary Theory and Policy, Third Edition, MIT Press.

Further references will be provided throughout the course.

Location:

Hohenheim

Module:

• 5201-530 Monetary Economics (compulsory)