316-306 Money and Banking

Coordinator:

Prerequisite/s:

Timetable:

Contact:

Objectives:

On completion of this subject students should be able to:

• understand the fundamentals of financial markets and institutions with particular emphasis on money and the banks;

• understand the role of the Reserve Bank and other financial supervisors;

• evaluate the recent historical experience with respect to a range of financial aggregates;

• understand the philosophies underlying financial regulation and deregulation and be able to evaluate the impact of recent changes;

• evaluate the effectiveness of various avenues of monetary transmission;

• understand and evaluate alternative approaches to the implementation of monetary policy;

• further extend their knowledge of money and banking by independent study of books and articles in related areas.

Content:

The impact of monetary policy in Australia will be examined with particular emphasis given to the roles played by the Reserve Bank as well as by other banking and financial institutions. The subject will include topics chosen from the following list: the role of the financial supervisor, financial regulation and deregulation, Reserve Bank operating procedures, a discussion of alternative approaches to monetary policy, interest rates and the yield curve, inflation, and the relationship between money and the business cycle. This subject emphasises institutional and public policy issues. In addition to the general theory of money and banking, the course also provides an Australian perspective by making use of a range of Australian readings in this topic.

Assessment:

Prescribed Texts:

To be advised.