Monetary economics is concerned with the effects of monetary institutions (such as Reserve Bank of Australia, RBA) and policy actions on economic variables (such as inflation and interest rates) that are of importance to individuals and firms. Money and monetary policy is an important argument in decision making in the fields of Accounting, Economics, and Finance as well as Business majors. This subject aims to provide basic understating of money and monetary policy with special reference of monetary policy in Australia. The subject will consist of two parts. In the first part (first half), we will study the role of money in the economy, the use of money in the digital economy, the structure of financial markets; determination and structure of interest rates; determination of exchange rates; theories of money demand and the money supply process. The second part of the subject examines monetary policy with a special reference to monetary policy by the Reserve Bank of Australia. The specific topics include choice of targets and instruments of monetary policy; monetary policy in an open economy; money and inflation, transmission mechanism of monetary policy; rules versus discretion in monetary policy and the issue of central bank independence.
|Faculty||Bond Business School|
|Study abroad||Available to Study Abroad students|
1. Our students will demonstrate knowledge toanalyse the monetary theory and the role and functions of central banks in the design and implementation of monetary policy for a specific countryunderstand the structure and operations of the Reserve Bank of Australia (RBA) and its monetary policy objectivesanalyse the empirical validity of monetary theory and be able to assess cross-country comparisons.[Attribute 1: Knowledge and Critical Thinking; Attribute 3: Communication Skills; Attribute 4: Global orientation]
2. Our students will demonstrate understanding of contemporary issues in monetary theory and monetary policy with a focus on the cross-country differences in designing the monetary policy especially in view of the recent global financial crisis.[Attribute 1: Knowledge and Critical Thinking; Attribute 3: Communication Skills; Attribute 4: Global orientation; Attribute 5: Responsibility and Ethics; Attribute 6: Entrepreneurship]
3. Our students will be able to complete a term paper on an assigned topic to review the literature, apply monetary theory to analyse the real life applications and suggest ways to improve current practices and finally present their findings. [Attribute 1: Knowledge and Critical Thinking; Attribute 3: Communication Skills; Attribute 4: Global orientation; Attribute 5: Responsibility and Ethics]
4. Our students will be able to cooperate as a member and /or a leader in a functional team to discuss presentations by fellow students.[Attribute 1: Knowledge and Critical Thinking; Attribute 2: Leadership, Initiative and Teamwork; Attribute 3: Communication Skills; Attribute 5: Responsibility and Ethics]
5. Students will demonstrate the ability to collect, analyse and organise information and ideas and convey those ideas clearly and fluently in written and oral forms.[Attribute 1: Knowledge and Critical Thinking; Attribute 3: Communication Skills; Attribute 6: Entrepreneurship]
6. Our studetns will have the skills and confidences to discuss ethical issues related to contemporary issues in monetary policy in a global world. This could be achieved through guest lectures on important topics such as Global Financial Crisis, Islamic banking, etc. [Attribute 1: Knowledge and Critical Thinking; Attribute 2: Leadership, Initiative and Teamwork; Attribute 3: Communication Skills; Attribute 4: Global orientation; Attribute 5: Responsibility and Ethics]
Please check the subject outline for pre-requisite subjects.