Duration: 3 hours per week - 13 weeks [ECTS: 6]

Course outline

This course describes the role of money and financial institutions in recent economies. It provides the main theories of Monetary Economics and analyses monetary and fiscal policy issues in the IS-LM framework. Central Banking behavior is the core of the financial system and the lender of last resort for the banking system. The following subjects will be discussed:

• Introduction to Monetary theory – The macroeconomic framework
• The financial system – Money vs. credit
• Main theories of interest rates
• Commercial and Central Banking
• Money Supply.
• Monetary Policy: Tools and Goals
• Money Demand and its determinants
• Money and Economic Activity – The IS-LM framework
• Fiscal and Monetary policies conducting in the IS-LM framework. Aggregate Demand Aggregate supply and the transmission mechanisms of monetary policy to real economy