TÜRKÇE
ENGLISH
Information
| Unit | FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES |
| ECONOMICS PR. (ENGLISH) | |
| Code | ECOS406 |
| Name | Central Banking and Monetary Policy |
| Term | 2024-2025 Academic Year |
| Semester | 8. Semester |
| Duration (T+A) | 3-0 (T-A) (17 Week) |
| ECTS | 6 ECTS |
| National Credit | 3 National Credit |
| Teaching Language | İngilizce |
| Level | Lisans Dersi |
| Type | Normal |
| Label | FE Field Education Courses E Elective |
| Mode of study | Yüz Yüze Öğretim |
| Catalog Information Coordinator | Prof.Dr. HÜSEYİN MAHİR FİSUNOĞLU |
| Course Instructor |
Dr. Öğr. Üyesi İpek TEKİN
(Bahar)
(A Group)
(Ins. in Charge)
|
Course Goal / Objective
This course aims to examine the functions of central banks, the tools of monetary policy, and their role in maintaining economic stability. It will analyze how central banks use tools such as interest rates, inflation targeting, and open market operations to influence the economy. Additionally, topics such as the relationship between monetary and fiscal policy, central bank independence, financial crises, and the global impact of monetary policy applications will be covered. Students will gain the necessary knowledge and skills to understand the effects of central banking and monetary policy strategies on macroeconomic equilibrium and assess current developments.
Course Content
Introduction to central banking, the functions and roles of central banks, money supply and money demand, interest rates and monetary policy tools, inflation targeting and monetary policy strategies, open market operations and discount rates, the relationship between monetary policy and fiscal policy, central bank independence and its role in economic management, financial crises and crisis management, global monetary policy practices, central bank balance sheets and the effects of monetary policy, liquidity traps and limitations of monetary policy, digital currencies and central bank digital currencies, monetary policy and economic growth, the relationship between inflation and unemployment, decisions of central banks during crises.
Course Precondition
There are no prerequisites.
Resources
Mishkin, F. S. (2012). The Economics of Money, Banking and Financial Markets (The Pearson Series in Economics).
Notes
Hartmann, P., & Smets, F. (2018). The first twenty years of the European Central Bank: monetary policy.
Course Learning Outcomes
| Order | Course Learning Outcomes |
|---|---|
| LO01 | Explains the basic duties of central banks, such as controlling the money supply, ensuring financial stability, and supervising payment systems. |
| LO02 | Explains the monetary policy tools used by central banks, such as interest rates, open market operations, and reserve requirement ratios. |
| LO03 | Explains the effects of monetary policy on macroeconomic variables such as inflation, unemployment and growth. |
| LO04 | Explains the importance of independence of central banks and the need for transparency and accountability of monetary policy decisions. |
| LO05 | Explains the fundamental principles of inflation targeting and compares different monetary policy regimes. |
| LO06 | Explains the causes of global and local financial crises and the methods of central banks to intervene in these crises. |
| LO07 | Explains the influence of international central banks, such as the Federal Reserve and the European Central Bank, on global financial markets. |
| LO08 | Explains the effects of factors like international trade, exchange rates, and capital flows on monetary policy. |
Relation with Program Learning Outcome
| Order | Type | Program Learning Outcomes | Level |
|---|---|---|---|
| PLO01 | Bilgi - Kuramsal, Olgusal | Explain the importance of demand and supply in economy sciece and the well-running conditions of the market economy | |
| PLO02 | Bilgi - Kuramsal, Olgusal | Define the role of pricing within the event advantage of the market economy | 5 |
| PLO03 | Bilgi - Kuramsal, Olgusal | Define the role of the state in economy, money and financial policies, the central bank and the structure of the market | 5 |
| PLO04 | Bilgi - Kuramsal, Olgusal | Perceive the costs and benefits arising from the global economy | |
| PLO05 | Bilgi - Kuramsal, Olgusal | Produce nymerical and policy options when confronted with problems | 5 |
| PLO06 | Bilgi - Kuramsal, Olgusal | Use quantitative and qualitative techniques of model building, decoding and interpretation | 5 |
| PLO07 | Bilgi - Kuramsal, Olgusal | Use the theory of economics in the analysis of economic events | |
| PLO08 | Bilgi - Kuramsal, Olgusal | Use computer programs, do synthesis and present prepared data efficiently | |
| PLO09 | Bilgi - Kuramsal, Olgusal | Apply the methods of economic analysis. | 4 |
| PLO10 | Bilgi - Kuramsal, Olgusal | Analyze at conceptual level and aquire abiliy in comparing, interpreting, evaluating and synthesizing in order to develop solutions to problems | |
| PLO11 | Bilgi - Kuramsal, Olgusal | Take responsibility individually and/or in a team, take leadership and work effectively | |
| PLO12 | Beceriler - Bilişsel, Uygulamalı | Follow innovative developments in the field being aware of the necessity of lifelong learning and improving him-/herself | |
| PLO13 | Beceriler - Bilişsel, Uygulamalı | Use of different sources about an unfamiliar field within academic principles, synthesize gained data and present effectively | |
| PLO14 | Yetkinlikler - Bağımsız Çalışabilme ve Sorumluluk Alabilme Yetkinliği | Use Turkish and at least one foreign language in accordance with the requirements of academic and work life | |
| PLO15 | Yetkinlikler - Bağımsız Çalışabilme ve Sorumluluk Alabilme Yetkinliği | Understand and interpret related peoples´ feelings, thoughts and behaviours correctly; express him-/herself accurately in written and oral language | |
| PLO16 | Yetkinlikler - Öğrenme Yetkinliği | Question traditional approaches, practices and methods. | 4 |
| PLO17 | Yetkinlikler - Öğrenme Yetkinliği | Recognize and apply social, scientific and professional ethical values. |
Week Plan
| Week | Topic | Preparation | Methods |
|---|---|---|---|
| 1 | Introduction and Basics of Central Banking | Reading the Related Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 2 | Money Supply and Money Demand | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 3 | Interest Rates and Monetary Policy Tools | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 4 | Inflation Targeting and Monetary Policy Strategies | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 5 | Open Market Operations and Discount Rates | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 6 | The Relationship Between Monetary Policy and Fiscal Policy | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 7 | Central Bank Independence and Its Role | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 8 | Mid term exam | Reading the Related Book Chapters | Ölçme Yöntemleri: Yazılı Sınav |
| 9 | European Central Bank and Federal Reserve Independence Concept | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 10 | Financial Crises and Crisis Management | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 11 | Central Bank Balance Sheets and Monetary Policy Effects | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 12 | Global Monetary Policy and Applications | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 13 | Liquidity Traps and Limitations of Monetary Policy | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 14 | Digital Currencies and Central Bank Digital Currencies (CBDC) | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 15 | Decisions Made by Central Banks During Crises | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 16 | Final exam | Reading the Related Book Chapters | Ölçme Yöntemleri: Yazılı Sınav |
| 17 | Final exam | Reading the Related Book Chapters | Ölçme Yöntemleri: Yazılı Sınav |
Assessment (Exam) Methods and Criteria
| Assessment Type | Midterm / Year Impact | End of Term / End of Year Impact |
|---|---|---|
| 1. Midterm Exam | 100 | 40 |
| General Assessment | ||
| Midterm / Year Total | 100 | 40 |
| 1. Final Exam | - | 60 |
| Grand Total | - | 100 |
Student Workload - ECTS
| Works | Number | Time (Hour) | Workload (Hour) |
|---|---|---|---|
| Course Related Works | |||
| Class Time (Exam weeks are excluded) | 14 | 3 | 42 |
| Out of Class Study (Preliminary Work, Practice) | 14 | 5 | 70 |
| Assesment Related Works | |||
| Homeworks, Projects, Others | 0 | 0 | 0 |
| Mid-term Exams (Written, Oral, etc.) | 1 | 15 | 15 |
| Final Exam | 1 | 30 | 30 |
| Total Workload (Hour) | 157 | ||
| Total Workload / 25 (h) | 6,28 | ||
| ECTS | 6 ECTS | ||