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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. It 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.

World-class LSE teaching             

The LSE Department of Economics is one of the biggest and best in the world, with expertise across the full spectrum of mainstream economics. A long-standing commitment to remaining at the cutting edge of developments in the field has ensured the lasting impact of its work on the discipline as a whole.

It is a leading research department, consistently ranked in the top 20 economics departments worldwide. This is reflected in the 2014 Research Assessment exercise which recognised the Department's outstanding contribution to the field

On this three week intensive programme, you will engage with and learn from full-time lecturers from the LSE’s economics faculty.




(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: Three

Dates: 1 - 19 August 2016

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.