EC321GC      Half Unit
Monetary Economics and Aggregate Fluctuations (Spring Semester)

This information is for the 2020/21 session.

Teacher responsible

Sir Charles Bean 32L.1.18


This course is available to General Course ‘Spring Semester’ students.


Students must have already completed intermediate courses in microeconomics and macroeconomics. Students must also have mathematics and statistics to at least an introductory level, while introductory econometrics is also desirable.

Course content

The course provides an introduction to the effects of monetary variables on the macroeconomic system, the role of the central bank and the conduct of monetary and financial policy. Subjects covered include: The transmission mechanism of monetary policy and theories of the Phillips curve; The optimal rate of inflation and optimal stabilisation policy; The positive theory of inflation and the case for central bank independence; Policymaking in an uncertain environment; The role of banks in the transmission  mechanism and the case for bank regulation; Financial crises and the role of the central bank as a lender of last resort; The 2007-8 financial crisis and unconventional monetary policies.


15 hours of lectures and 10 hours of classes in the LT.

This course is delivered through a combination of classes and lectures totalling a minimum of 25 hours over the Lent Term. This year, some or all of this teaching will be delivered through a combination of virtual classes, live streamed (recorded) lectures, and some flipped content delivered as short online videos

Formative coursework

Students are required to submit two essays or exercises. Feedback is provided on these by the class teacher.  Students are expected to make positive contributions to class discussions

Indicative reading

The most useful text books are M Lewis & P Mizen, Monetary Economics, C Walsh, Monetary Theory and Policy 4th edn., and R Aliber and C Kindleberger, Manias, Panics and Crashes: A History of Financial Crises, 7th edn. The main source of assigned readings is, however, journal articles.


Exam (100%, duration: 1 hour and 30 minutes, reading time: 15 minutes) in the summer exam period.

Important information in response to COVID-19

Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Economics

Total students 2019/20: Unavailable

Average class size 2019/20: Unavailable

Capped 2019/20: No

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Self-management
  • Problem solving
  • Application of numeracy skills