Model-based and empirically grounded introduction to the economics of money and monetary institutions in the U.S. The course examines the value of money, the causes and consequences of inflation, the role of interest rates, and the monetary functions of banks and the Federal Reserve System from both historical and contemporary perspectives.
Additional Requirements for Graduate Students: A course project or additional exam will be required of graduate students.
Athena Title
Monetary Economics
Prerequisite
ECON 4010 or ECON 4020
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Student learning Outcomes
Students will be able to distinguish relative prices from the overall price level, and to distinguish the level of prices from its rate of change, common sources of confusion in popular accounts of the economy.
Students will learn to apply theoretical models of money supply and demand to interpret price level and inflation data, and to critically assess past and future monetary systems.
Students will be able to analyze balance sheets to conceptually and quantitatively understand the monetary functions of the banking system.
Students will understand how the private sector, banks and the Federal Reserve interact to determine the money supply.
Students will be able to understand motivations, mechanisms and methods of Federal Reserve monetary stabilization policy, and critically assess media accounts of Federal Reserve policy and actions.
Topical Outline
The origins and nature of money
Money and the price level
Money and inflation
Money, banks and the Federal Reserve System
Determination of the money supply
Monetary policy
Exchange rates and money in the world economy
Institutional Competencies Learning Outcomes
Analytical Thinking
The ability to reason, interpret, analyze, and solve problems from a wide array of authentic contexts.
Critical Thinking
The ability to pursue and comprehensively evaluate information before accepting or establishing a conclusion, decision, or action.
