Financial Markets and Monetary Policy
Essex Business School
Undergraduate: Level 6
Thursday 03 October 2019
Saturday 14 December 2019
11 November 2019
Requisites for this module
BE300 or EC111 or IA712
BSC N390 Banking and Finance,
BSC N392 Banking and Finance (Including Placement Year),
BSC NH90 Banking and Finance (Including Year Abroad),
BSC NR3Y Banking and Finance with a Modern Language
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.
• 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
On successful completion of the module, students will 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 (or equivalent software) 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.
A two-hour lecture per week for ten consecutive weeks and 1 class fortnightly. You 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.
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.
Assessment items, weightings and deadlines
|Coursework / exam
||120 minutes during Summer (Main Period) (Main)
Module supervisor and teaching staff
Jason Cen and Ming-Tsung Lin
Dr Athanasios Verousis
The University of Newcastle-upon-Tyne
Senior Lecturer in Accounting & Finance
Prof Christos Ioannidis
Available via Moodle
Of 42 hours, 42 (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).
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