BE334-6-AU-CO:
Financial Markets and Monetary Policy

The details
2023/24
Essex Business School
Colchester Campus
Autumn
Undergraduate: Level 6
Current
Thursday 05 October 2023
Friday 15 December 2023
15
06 November 2023

 

Requisites for this module
BE300 or EC111 or IA712
(none)
(none)
(none)

 

(none)

Key module for

BSC N390 Banking and Finance,
BSC N391 Banking and Finance (Including Foundation Year),
BSC N392 Banking and Finance (Including Placement Year),
BSC NH90 Banking and Finance (Including Year Abroad)

Module description

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.

Module aims

The aims of this 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 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.

Module learning outcomes

By the end of this module, students will be expected to be able to:



  1. Explain how the interest rates are determined, what factors affect them and what are the risk and term structure of interest rates.

  2. Apply the concepts of rational expectations and efficient financial markets to analyse the effects of monetary policy,

  3. Identify principal objectives of central banks and forecast their possible market interventions in response to asset price movements and other market changes.

  4. 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)



  1. Develop your digital/technical fluency through the use and application of MS Excel (or equivalent software) computing and graphical functions to real-life data.

  2. Enhance your written communication skills through putting together a research report / an essay.

  3. Improve your oral communication skills by making short presentations / communications in the classes.

  4. Improve your analytical (research) and problem-solving skills by applying models to explain trends in the data and answer model questions.

  5. Develop your critical thinking by critically evaluating existing models and their applicability to the real-life data.

Module information

No additional information available.

Learning and teaching methods

This module will be delivered via:

  • One 2-hour lecture per week.
  • One class per fortnight.

Students need to attend all the lectures and classes. 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.

Bibliography

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.

Assessment items, weightings and deadlines

Coursework / exam Description Deadline Coursework weighting
Coursework   Assignment  22/11/2023   
Exam  Main exam: In-Person, Open Book, 120 minutes during Summer (Main Period) 
Exam  Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period) 

Exam format definitions

  • Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
  • In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
  • In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
  • In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary, for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.

Your department will provide further guidance before your exams.

Overall assessment

Coursework Exam
30% 70%

Reassessment

Coursework Exam
30% 70%
Module supervisor and teaching staff
Dr Mehmet Karaca, email: m.f.karaca@essex.ac.uk.
Mr Junyi Liao, email: junyi.liao@essex.ac.uk.
Dr Mehmet Karaca & Dr Junyi Liao
ebsugcol@essex.ac.uk

 

Availability
Yes
Yes
No

External examiner

Dr Hf Guo
University of Durham
Assistant Professor in Finance
Resources
Available via Moodle
Of 36 hours, 36 (100%) hours available to students:
0 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s), module, or event type.

 

Further information
Essex Business School

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