EC245-Money and Banking

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites: EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics
Modules excluded:
Current from: 2019/0

Module Convenor: Dr Shixuan Wang

Email: shixuan.wang@reading.ac.uk

Type of module:

Summary module description:

Money and banking builds on the some of the concepts first introduced in intermediate macroeconomics. It is designed to provide you with a more in-depth understanding of the fundamental principles and analytic concepts related to how money and monetary policy affect the economy. In particular, by the end of this module students should have a clear understanding of both the banking system and the central bank - as well as the interrelationship between these institutions and monetary policy, interest rates, exchange rates, and inflation. 

Aims:

The primary focus of this module is on understanding money and monetary policy and their impact on the macroeconomy. This includes having a basic understanding of the principle parts of a financial system, of banks and their roles both in the financial system and with respect to monetary policy, of money, and of central banks and monetary policy. Additional content covered may include 1) assets supply and demand, 2) interest rate determination, 3) stock and bond markets, 4) exchange rates, 5) the money creation process, 6) the relationship between money, inflation, and monetary policy, and 7) the regulation history and structure of the banking system.  

Assessable learning outcomes:

By the end of course, students should be able to

• Explain the functions of money and other financial assets;


• Identify the necessary parts in a fully functioning financial system;


• Interpret the role of financial institutions and central banks;


• Understand monetary policy and its impact

Additional outcomes:

Students will develop skills to apply the theoretical models learned to real world problems, such as financial crises.

Outline content:

Basic topics include: Understanding the basics of financial markets, financial asset, financial institutions, money and central banks; understanding banks and their roles in the financial system and with respect to monetary policy; understanding money; and understanding central banks and monetary policy. Additional topics may include: assets supply and demand, interest rate determination, stock and bond markets, exchange rates, the money creation process, the relationship between money, inflation, and monetary policy, the regulation history and structure of the banking system, and basic theoretical models of banks and banking crises. 

Brief description of teaching and learning methods:

Detailed guidance on the topics covered will be provided in the lectures, together with occasional handouts covering the material discussed, examples, exercises and solutions to facilitate understanding of key concepts. Students may be required to do exercises corresponding to each topic, to read a significant amount of journal articles, and to undertake research using the library, internet, etc. 

Contact hours:

	Autumn	Spring	Summer
Lectures		48
Guided independent study:		152
Total hours by term		200
Total hours for module

Summative Assessment Methods:

Method	Percentage
Written exam	40
Written assignment including essay	15
Oral assessment and presentation	15
Class test administered by School	30

Summative assessment- Examinations:

One 2-hour unseen written paper.

Summative assessment- Coursework and in-class tests:

Mid-term test (30%)

Essay (15%)

In-class Group Presentation (15%)

Formative assessment methods:

Penalties for late submission:
The Module Convener will apply the following penalties for work submitted late:

where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day[1] (or part thereof) following the deadline up to a total of five working days;

where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

A minimum overall mark of 40%. 

Reassessment arrangements:

Re-examination for all modules takes place in August/September of the same year.

Re-assessment is by examination only; coursework is not included at the second attempt. 

Additional Costs (specified where applicable):

1) Required text books: The Economics of Money, Banking, & Financial Markets: European Edition, by Frederic S. Mishkin, Kent Matthews, and Massimo Giuliodori, 2013, Pearson Publishers, ISBN: 978-0-273-73180-1, (Estimated Price: £59.84)

Last updated: 8 April 2019