Financial Markets and Monetary Policy
Essex Business School
Autumn & Spring
Undergraduate: Level 6
Thursday 08 October 2020
Friday 26 March 2021
01 July 2019
Requisites for this module
This course explores the links between money, financial intermediaries, financial markets and the policies that affect them. In particular, it focuses on the effects of monetary policy on financial markets and through them on the economy as a whole. Special emphasis will be made on expectations and the role of policy communication in these effects.
The aims of the module are:
• To provide students with an understanding of how interest rates, money supply and central bank actions affect the decisions of economic agents, financial markets and prices
• To develop an understanding of objectives, functions, and operations of central banks in financial markets
• To introduce students to a number of recent developments and policy debates regarding financial markets and monetary regulation
By the end of this course students should be able to:
• Explain how the interest rates are determined, what factors affect them and what are the risk and term structure of interest rates
• Apply the concepts of rational expectations and efficient financial markets to analyse the effects of monetary policy
• Identify principal objectives of central banks and forecast their possible market interventions in response to asset price movements and other market changes
• Explain the role of financial institutions for the various channels of monetary policy transmission and derive the implications of monetary policy actions for financial markets
Skills for your professional life (Transferable Skills)
* Develop your digital/technical fluency through the use and application of MS Excel computing and graphical functions to real-life data
* Enhance your written communication skills through putting together a research report / an essay
* Improve your oral communication skills by making short presentations / communications in the classes
* Improve your analytical (research) and problem-solving skills by applying models to explain trends in the data and answer model questions.
* Develop your critical thinking by critically evaluating existing models and their applicability to the real-life data.
No additional information available.
A two-hour lecture per week for ten consecutive weeks and 1 class fortnightly.
You are expected to do relevant reading and preparation before the lecture. It is strongly recommended that also you do additional reading to supplement the lecture material. In addition, you are expected to sign up for one tutorial group only and always go to the same tutorial group.
Finally, there is a revision session in the summer term.
- Mishkin, Frederic S. (c2016) The economics of money, banking, and financial markets, Harlow: Pearson Education Limited.
The above list is indicative of the essential reading for the course. The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students. Further reading can be obtained from this module's reading list.
Module supervisor and teaching staff
Prof Michael Lamla, email: email@example.com.
Michael Lamla & Jason Cen
No external examiner information available for this module.
Available via Moodle
No lecture recording information available for this module.
* Please note: due to differing publication schedules, items marked with an asterisk (*) base their information upon the previous academic year.
Disclaimer: The University makes every effort to ensure that this information on its Module Directory is accurate and up-to-date. Exceptionally it can
be necessary to make changes, for example to programmes, modules, facilities or fees. Examples of such reasons might include a change of law or regulatory requirements,
industrial action, lack of demand, departure of key personnel, change in government policy, or withdrawal/reduction of funding. Changes to modules may for example consist
of variations to the content and method of delivery or assessment of modules and other services, to discontinue modules and other services and to merge or combine modules.
The University will endeavour to keep such changes to a minimum, and will also keep students informed appropriately by updating our programme specifications and module directory.
The full Procedures, Rules and Regulations of the University governing how it operates are set out in the Charter, Statutes and Ordinances and in the University Regulations, Policy and Procedures.