2024

Monetary Economics

Name: Monetary Economics
Code: ECN02360L
6 ECTS
Duration: 15 weeks/156 hours
Scientific Area: Economy

Teaching languages: Portuguese
Languages of tutoring support: Portuguese

Presentation

The Monetary Economics course addresses the issues of currency definition and quantification, currency supply and demand, monetary policy, the international monetary system and theory of interest rates. Taught in portuguese.

Sustainable Development Goals

Learning Goals


Define and quantify the currency; Examining the fundamental aspects of the processes of creation and distribution of money by the banking system; identify determinants of money demand by non-bank sector and the relationship between money and economic activity; Present the objectives and instruments of policy monetary as well as the role and conduct of monetary authorities in the conduct of economic policy, analyze the monetary and financial relations with the International Monetary System and, more specifically, the European Economic and Monetary Union; study the theory of interest rates, its relations with other macroeconomic variables and the yield curve.


Contents


1. CURRENCY : HISTORY , DEFINITION AND MEASUREMENT

1.1. The currency and financial system

1.2. Evolution of forms and monetary systems

1.3. Functional definition of money

1.4. Statistical definition : monetary aggregates

2 . The money supply

2.1. The Monetary Creation

2.2. The Monetary Control Creation

3 . A MONEY DEMAND

            3.1. Classical perspective : quantitative relationship and dichotomous model

            3.2. Keynesian Perspective : currency ratio - interest rate

            3.3. Modern monetary theory and its influence on the conduct of economic policy

 4 . MONETARY POLICY

            4.1. The transmission mechanism of monetary policy

            4.2. The monetary policy strategy of the ECB

            4.3. Rules and reaction functions of monetary policy

5 . The INTERNATIONAL MONETARY SYSTEM

            5.1. The foreign exchange market

            5.2. Supervision of SMI

            5.3. exchange rate regimes

6 . THEORY OF INTEREST RATES

            6.1. The Fisher ratio and interest rate parities

            6.2. Term Structure of Interest Rates


Teaching Methods

Classroom work encourages students' participation, clarifying doubts and discussing topics related to the syllabus, developing a critical spirit and stimulating the learning process. The presentation of the subjects is accompanied by information technology resources and with the elaboration of the summary of the subject treated in each and the indication of the most significant bibliography, which are available on the website of the discipline.
In addition to classroom work, students are urged to read the recommended bibliography, available in the university library, complementary texts, research works, and to follow the current situation on the topics covered in the classes presented in the media.
The final classification in the discipline of Monetary Economics will result from the combination of the scores of two written assessment tests, in the continuous assessment regime, or the score of a final exam.

Assessment


- Arrangements for Final Examination, or

- System of Continuous Assessment: combination of notes three assessment components, with equal weighting (tentative dates):

             1st Test Evaluation:

             2nd Test Evaluation:

             3rd Test Evaluation:

- Examination of Appeal:
- Examination of Special Season:


Recommended Reading



  1. ABREU, M., FERREIRA, C., BARATA, L. e ESCÁRIA, V. (2007) Economia Monetária e Financeira, Escolar Editora. [336.74 ABR e]

  2. BANCO CENTRAL EUROPEU (2011) The monetary policy of the ECB (em português, ed. 2004), Banco Central Europeu. [www.ecb.int]

  3. BARATA, J. (2005) Moeda e Mercados Financeiros, 2ª ed., Edição do autor, ISEG. [(1998): 336.74 BAR m]

  4. BOFINGER, P. (2001) Monetary Policy: Goals, Institutions, Strategies, and Instruments, OxfordUniversity Press. [336 BOF m]

  5. BURDA, M. e WYPLOSZ, C. (2011) Macroeconomia: Uma Visão Europeia, 5/e, Verlag Dashöfer. [(1997): 330.101.541 BUR m]

  6. CECCHETTI, S. (2008) Money, Banking and Financial Markets, 2ª ed., McGraw-Hill. [(2006) 336.7 CEC m]

  7. EYLER, R. (2010) Money and Banking: an international text, Routledge. [336.76 EYL m]

  8. FALASCHETTI, D. and ORLANDO, M. (2008) Money, Financial Intermediation and Governance, Edward Elgar. [336.76 FAL m]

  9. FONSECA, J. (2010) Economia Monetária e Financeira, Imprensa da Universidade de Coimbra. [336.74 FON e]

  10. 10. HAUGEN, R. (2000) Modern Investment Theory, 5ª ed., Prentice-Hall International Editions. [(1997): 658.15 HAU]

  11. 11. HOWELLS, P. e BAIN, K. (2008) The Economics of Money, Banking and Finance: A European Text, 4th ed., Addison Wesley Longman. [(1998): 336.7 HOW m]

  12. 12. MISHKIN, F. (2009) The Economics of Money, Banking, and Financial Markets, 9ª ed., Prentice Hall. [(1994): 336.7 MIS e]

  13. 13. PAPADEMOS, L. and STARK, J. (Eds.), (2010) Enhancing Monetary Analysis, European Central Bank. [www.ecb.int]

  14. 14. SCHELLER, H. (2006) O Banco Central Europeu: História, Papel e Funções, 2ª ed., Banco Central Europeu. [www.ecb.int]


Teaching Staff (2023/2024 )