MONETARY POLICY

This module introduces students to the key concepts and topics of monetary theory and policy. The module covers structure of central banks around the world, monetary policy goals and tools, transmission mechanisms of monetary policy and implications of policies in macroeconomic set up.

Monetary Policy aims to impart students the monetary mechanisms and transmission. Specifically, it intends to teach the instruments of monetary policy, the strategies for a financial stability-oriented monetary policy, the ultimate goal and final targets of monetary policy, and the conduct of monetary policy around the world.

LEARNING OUTCOMES

After completing this course, students should be able to:

1. outline and give a detailed justification of the main goals of monetary policy
2. Review the instruments available to the central bank for the achievement of the goals of monetary policy.
3. Give an overview of the implementation of monetary policy in practice.
4. Consider a number of issues relating to the optimal design of monetary institutions and the conduct of monetary policy.
5. Give practical issues relating to the design of the monetary policy framework, notably the interplay between monetary and fiscal policy; monetary policy games; central bank independence, and monetary policy operating procedures.
6. Evaluate the ability of different monetary policy instruments to achieve the monetary policy goals;
7. Review and assess the experience of a range of economies in conducting monetary policy;
8. Explain the difficulties in designing optimal monetary policy and assess alternative solutions to these problems.
9. Research and investigative skills such as problem framing and solving and the ability to assemble and evaluate complex evidence and arguments of monetary policy.
10. Communicate the monetary policy skills in order to critique, create and communicate understanding and to collaborate with and relate to others. 
11. Personal effectiveness through task-management, time-management, teamwork and group interaction, adapting to new situations, personal and intellectual autonomy through independent learning.
12. Practical/technical skills such as modeling skills (abstraction, logic, succinctness), qualitative and quantitative analysis and general IT literacy.