Money and Monetary Policy
|Faculty/School:||Faculty of Business, School of Business|
|Semesters Offered:||September 2013 - Standard|
September 2014 - Standard
|Credit Value:||10 credit points|
|Subject Enquiries:||Email: firstname.lastname@example.org|
|Study Abroad availability:||Available to Study Abroad students|
|Subject Outline:||May 2012 [ Standard ]|
Monetary economics is concerned with the effects of monetary institutions (such as Reserve Bank of Australia, RBA) and policy actions on economic variables (such as inflation and interest rates) that are of importance to individuals and firms. Money and monetary policy is an important argument in decision making in the fields of Accounting, Economics, and Finance as well as Business majors. This subject aims to provide basic understating of money and monetary policy with special reference of monetary policy in Australia. The subject will consist of two parts. In the first part (first half), we will study the role of money in the economy, the use of money in the digital economy, the structure of financial markets; determination and structure of interest rates; determination of exchange rates; theories of money demand and the money supply process. The second part of the subject examines monetary policy with a special reference to monetary policy by the Reserve Bank of Australia. The specific topics include choice of targets and instruments of monetary policy; monetary policy in an open economy; money and inflation, transmission mechanism of monetary policy; rules versus discretion in monetary policy and the issue of central bank independence.
Student must have successfully completed ECON12-202 or equivalent in order to undertake ECON13-305. This is the Capstone subject for the Economics major and it assesses your ability to integrate the knowledge obtained throughout the degree and in particular the economics major. You are strongly advised to complete as much of the major as possible before attempting this subject.