ECON 7114 - Money, Banking and Financial Markets IIID

North Terrace Campus - Semester 2 - 2014

This course links the fields of macroeconomics and finance. It provides coverage of economic principles that underlie the operation of banks and other financial institutions. The role of money in the economy and the impact of monetary policy on the macroeconomy are examined. The course aims at providing students with the means to analyse monetary questions and institutions. It is not a course designed to further technical expertise in the instruments used in financial markets. This course provides a smooth transition for those intending to pursue economics at the profesional level.

  • General Course Information
    Course Details
    Course Code ECON 7114
    Course Money, Banking and Financial Markets IIID
    Coordinating Unit School of Economics
    Term Semester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Incompatible ECON 3511 & ECON 3035
    Assumed Knowledge ECON 7071 or equivalent
    Course Description This course links the fields of macroeconomics and finance. It provides coverage of economic principles that underlie the operation of banks and other financial institutions. The role of money in the economy and the impact of monetary policy on the macroeconomy are examined. The course aims at providing students with the means to analyse monetary questions and institutions. It is not a course designed to further technical expertise in the instruments used in financial markets. This course provides a smooth transition for those intending to pursue economics at the profesional level.
    Course Staff

    Course Coordinator: Dr Nicolas Groshenny

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    1. To understand the economic principles underlying the operation of financial intermediaries.

    2. To understand how central banks conduct monetary policy.

    3. To understand contemporary issues in monetary policy and financial stability.

    4. To conduct a theoretical analysis of real-world issues and phenomena.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1, 2, 3, 4
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 4
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 3, 4
    Skills of a high order in interpersonal understanding, teamwork and communication. 4
    A proficiency in the appropriate use of contemporary technologies. 3, 4
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1, 2, 3, 4
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 1, 2, 3, 4
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1, 2, 4
  • Learning Resources
    Required Resources
    The textbook for this course is:

    Champ, Freeman and Haslag: "Modeling Monetary Economies," 3rd Edition, Cambridge University Press.
    Recommended Resources
    Optional reading: "Manias, Panics and Crashes: A History of Financial Crises," 6th Edition, by Charles Kindleberger and Robert Aliber, 2011, Palgrave Macmillan.

    Online Learning
    I will NOT record any lectures. It is crucial that students regularly attend lectures.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Lectures (2 hours per week) supported by tutorials (1 hour per week).
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Students are expected to devote an average of 12 hours per week to this course:
    • Lectures: 2 hours
    • Tutorials: 1 hour
    • Independant Study (includes preparation for tutorials, mid-semester and final exam): 9 hours
    Learning Activities Summary
    The course outline provided below is tentative and subject to changes.

    Part I: Money

      1) A Simple Model of Money

       2) Inflation

       3) International Monetary Systems

       4) The Phillips Curve


    Part II: Banking

       5) Capital

       6) Liquidity and Financial Intermediation

       7) Central Banking

       8) Money Stock Fluctuations

       9) Fully Backed Central Bank Money

       10) Bank Risk

       11) Liquidity Risk and Bank Panics
    Specific Course Requirements
    No specific requirements. Students are expected to regularly attend both lectures and tutorials and to actively participate during the tutorials.
    Small Group Discovery Experience
    A Small Group Discovery Experience will not be offered for this course in 2014.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Tutorial Participation 30%
    Mid-Semester Exam 20%
    Final Exam 50%
    Assessment Related Requirements
    Students must obtain an overall grade of 50% to pass the course. This does not mean that students have to achieve 50% for each and every assessment task or for the final examination; but the sum of all assessment tasks must equal or exceed 50%.
    Assessment Detail
    Mid-term: maximum marks = 20
    • The mid-term exam will take place on Tuesday 16th September, from 10:00 to 11:00 am, in the usual lecture theatre (Horace Lamb 1022).
    • The mid-term exam will cover the material that will have been discussed during the lectures and tutorials up to the date of the mid-term exam
    • The mid-term will count for 20% of the final course grade
    • There will be no retake or supplementary exam for the mid-term exam. Any student who misses the mid-term exam, for whatever reason, will have his/her final exam mark reweighted to count 70% towards the final course grade.
    Tutorial Participation: maximum marks = 30
    • "Tutorial Participation" will count for 30% of the final course grade
    • The marks for "Tutorial Participation" will be affected by 2 components:
              a. Regular attendance and active participation;
              b. The quality of the student's written solution to the weekly tutorial assignment. Each week, tutors will randomly selected a few students and grade their homeworks.


    Final Exam: maximum marks = 50

    The Final Exam will be a closed-book 3-hour examination. The final examination date will be advised by the University. Students are required to make themselves available for the entire examination period. I will not make special arrangements for any student.
    Submission

    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

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