| Course ID: | ECON 4500/6500. 3 hours. |
| Course Title: | Monetary Policy |
Course
Description: | The theory and practice of monetary policy, including discussions of rationales for government involvement in money and banking, actual central bank behavior, the choice of monetary rules versus discretion, and how alternative monetary regimes might work. |
| Oasis Title: | MONETARY POLICY |
| Pre or Corequisite: | ECON 4010 and (ECON 4030 or ECON 4030H or ECON 4100/6100) |
Semester Course
Offered: | Offered every year. |
| Grading System: | A-F (Traditional) |
|
| Course Objectives: | The course covers the theory of monetary institutions and monetary
policy "regimes." The class explores how monetary institutions have evolved, the
rationales for government involvement in money and banking, how monetary
authorities in a discretionary fiat regime might behave, and how some alternative
regimes might work. |
| Topical Outline: | The Evolution of Market Monetary Institutions
Commodity Money
Money Issue by Unrestricted Banks
The Emergence of Central Banking
Fiat Money, the Price Level, and Inflation
Rationales for Government Involvement in Money
Rationales for Government Involvement in Banking
Central Bank Behavior
The Seignorage Motive
Bureaucracy
Political Business Cycles
The Problem of Time-Inconsistency
Alternative Monetary Regimes |