IKT 305 - Monetary Theory and Policy

Faculty of Business and Management Sciences · International Trade and Finance · Undergraduate

ECTS: 5 T+P+L: 3+0+0 University Elective
Coordinator: Arş. Gör. Zehra Killik

Course Objective

To develop a historical and analytical point of view on the relationship between money, financial system and the economy, with an emphasis on both orthodox and heterodox monetary policy and monetary theories.

Course Content

The role of money and credit in modern capitalist economies. Financial aspects of the process of economic growth, with an emphasis on orthodox and heterodox monetary theory and policy. Historical evolution of money and banking.

Required Resources

Monetary Economics: Theory and Policy, Efil Y.
Monetary Theory and Monetary Policy, M. Merih Paya.

Recommended Resources

Money Banking and Financial System, Ekrem Erdem.

Course Learning Outcomes

  1. To understand the relations and interactions between money, the financial system and the macroeconomy.
  2. To understand the fundamental characteristics of and differences between orthodox and heterodox monetary theories and policies.
  3. To understand the monetary transmission process under alternative monetary policy strategies.
  4. To be able to define the monetary policy instruments of the Central Bank of the Republic of Turkey,
  5. To be able to define the duties and authorities of the Central Bank of the Republic of Turkey,

Core Area Distribution

(31) Social and Behavioural Science%100

Teaching Methods

ExpressionQuestion-AnswerDiscussionExercise and PracticePresentationBrain Storming

Assessment & Evaluation

HomeworkOral ExamTesting (Essay / Tests: True-Falls, multiple-choice, short answer, matching)

ECTS / Workload

ActivityQuantityDuration (h)Total Workload
Course Duration (Including Exam Week)16348
Out of Class Study Period16348
Midterm000
Quiz000
Assignment14114
Practice14114
Final000

Course Schedule

WeekSubjectPreparation
1Money and Payment SystemMoney and Payment System
2Financial Instruments, Financial Markets and Financial InstitutionsFinancial Instruments, Financial Markets and Financial Institutions
3Risk and Term Structure of Interest RatesRisk and Term Structure of Interest Rates
4The Economics of Financial IntermediationThe Economics of Financial Intermediation
5Depository Institutions: Banks and Bank ManagementDepository Institutions: Banks and Bank Management
6Financial Industry StructureFinancial Industry Structure
7Regulating the Financial SystemRegulating the Financial System
8Ara SınavAra Sınav
9Central Banks in the World TodayCentral Banks in the World Today
10The Structure of Central Banks: The Federal Reserve and the European Central BankThe Structure of Central Banks: The Federal Reserve and the European Central Bank
11The Central Bank Balance Sheet and the Money Supply ProcessThe Central Bank Balance Sheet and the Money Supply Process
12Monetary Policy: Stabilizing the Domestic EconomyMonetary Policy: Stabilizing the Domestic Economy
13Exchange Rate Policy and the Central BankExchange Rate Policy and the Central Bank
14Money Growth, Money Demand and Modern Monetary PolicyMoney Growth, Money Demand and Modern Monetary Policy
15Output, Inflation and Monetary PolicyOutput, Inflation and Monetary Policy
16Final SınavıFinal Sınavı