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EC321: Money and Banking


Course Content

How does the recent financial turmoil affect the economy? What are the causes of inflation and deflation? Why do some countries experience sharp swings in exchange rates? What should central banks do in such circumstances? In order to answer these and related questions, this course provides a set of tools to analyse the interaction between monetary policy, the real economy and the financial sector. The course will combine a study of the relevant theory with applications to recent events and policy debates.

Topics to be covered include:

  • The transmission mechanism of monetary policy
  • Monetary policy strategies
  • The liquidity trap and policy responses: quantitative easing, credit easing, and other unconventional policies
  • Financial markets
  • Fiscal and monetary policy linkages: government debt and inflation risks
  • Banking and financial intermediation
  • Current account dynamics
  • Exchange rates and currency crises
  • Deleveraging Crisis
  • Policy responses to the financial crisis.



(suggested references; the course will be based on lectures notes)

Walsh (2003), Monetary Theory and Policy, MIT Press.

Obstfeld & Rogoff (1996), Foundations of International Macroeconomics, MIT Press.

*A more detailed reading list will be supplied prior to the start of the programme

**Course content, faculty and dates may be subject to change without prior notice



Session: Two    

Dates: 27th July – 14th August 2015

Lecturer: Dr Gianluca Benigno|
Dr Kevin Sheedy|


Level: 300 level|

Fees: Click here| for information

Prerequisites: Intermediate macroeconomics and multivariate calculus

Lectures: 36 hours 

Classes: 18 hours

Assessment*: Two written examinations

Typical credit**: 3 credits (US) 7.5 ECTS points (EU)

How to apply?|

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*assessment is optional – see FAQs|

**You will need to check with your home institution. Read more about credit transfer here|.