This course provides cognizance of the significance of monetary phenomenon within any economy. Understanding of the theoretical base behind the functioning of money and its allied concepts and how they are meaningful in the conduct of monetary policy and its implications within national borders and beyond. Further, it will inculcate ability to understand the formulation, function and execution of monetary policy relative to contemporary national and international circumstances. The main objectives of the course will be to understand the role of money in the economy as well as to understand some models where inflation shows persistence, the theory of monetary policy, monetary policy operating procedures and the central banking mechanisms. Monetary economics is the branch of economics that studies the different competing theories of money: it provides a framework for analyzing money and considers its functions (such as medium of exchange, store of value and unit of account), and it considers how money, for example fiat currency, can gain acceptance purely because of its convenience as a public good. The discipline has historically prefigured, and remains integrally linked to, macroeconomics. This branch also examines the effects of monetary systems, including regulation of money and associated financial institutions and international aspects. Monetary Economics aim is to gain insight into more recent approaches to monetary policy, and to developments in understanding and applying such policy. The main objectives of the course will be to understand the role of money in the economy as well as to understand some models where inflation shows persistence, the theory of monetary policy, monetary policy operating procedures and the central banking mechanisms.

Learning Outcomes

On successful completion of this course, students will be able to:

• Define and understand the different concepts of Monetary Economics.
• To understand the role of money in the economy.
• An understanding of the links between monetary policy, financial markets and the real economy
• To understand the Theories of Monetary Economics and apply them to real-world economics.
• To describe the role of central bank and its performance about commercial banks.
• To describe the monetary policy strategies implemented by the main central banks
  and to be familiar with how monetary policy decisions are implemented and
  transmitted to the economy.
• To elaborate concept of inflation and its role in the economy.

Recommended Books

1. Fredric S. Mishkin, (1995), Financial Markets and Money, Harper & Row Publishers.

2. Laider, David E.W (1996), The Demand for Money: Theories, Evidence and Problems (Fourth edition), Harper & Row, Publishers, New York.

Suggested Books

Bennett T. McCallum, (1989), Monetary Economics, Theory and Policy, McMillan.

Description of the System of Evaluation (Exam, assignments etc.):

Mid Term: 30 marks

Sessional: 20 marks

• Project: 25%
• Presentation: 25%
• Participation: 25%
• Attendance 25 %

Final Exam: 50 marks  

Class Timings:  

For Regular Class               Wensday     (8.00 AM to 9.30 AM )

                                            Thursday     (8.00 AM to 9.30 AM )

For Self Support Classes    Wensday     (1.00 PM to 2.30 PM )

                                            Thursday     (2.30 PM to 4.00 PM )