This course is available on the MSc in Economics (2 Year Programme). This course is not available as an outside option to students on other programmes. This course uses controlled access as part of the course selection process. For information on controlled access courses, including eligibility, application processes, deadlines, and departmental contact details, please refer to the Controlled Access Courses webpage.

New course for the 2027/28 academic session.

How to apply: These courses are intended for MSc Economics, MSc Economics (2 Year Programme), and MSc EME Students. Any external student must have successfully completed EC400 or EC451 in September and/or have approval of the Department of Economics.

Deadline for application: Please apply as soon as possible after the opening of course selection for all courses.

For queries contact: Econ.msc@lse.ac.uk

Pre-requisites:

Students must have completed EC451 or EC400 before taking this course.

Additional requisites:

In exceptional circumstances, students may take this course without EC400/EC451 provided they meet the necessary requirements and have received approval from the course conveners (via a face-to-face meeting), the MSc Economics Programme Director and their own Programme Director. Contact the Department of Economics for more information (econ.msc@lse.ac.uk) regarding entry to this course.

The course explores, both theoretically and empirically, the effects of monetary variables on the macroeconomic system, the role of banks and of the central bank, and the conduct of monetary and financial policies.

Subjects likely to be covered include:  the role of monetary policy in affecting the macroeconomy, and the implications of nominal rigidities such as sticky prices; the costs of inflation and optimal monetary policy; the causes and consequences of business cycles and the different tools that central banks have at their disposal to control inflation, financial stability, and economic activity.

20 hours of lectures and 9 hours of seminars in the Winter Term.
1 hour of seminars in the Spring Term.

This course has a reading week in Week 6 of Winter Term.

Two marked assignments over the term, with feedback provided.

A reading list will be provided by the lecturer at the beginning of the course.

Exam (100%), duration: 120 minutes, reading time: 15 minutes in the Spring exam period.

This course is IRDAP-enabled, meaning that resit and deferred assessments will take place in August at the end of the academic year.