Monetary Economics

Code:

1EC302

Acronym:

EM

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2012/2013 - 1S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Bachelor in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LECO	300	Bologna Syllabus since 2012	3	-	6	63	162

Teaching language

Portuguese

Objectives

To provide undergraduate students, considering the available time and background study, with ample and integrated knowledge about the way monetary policy is able to attain economic policy goals, in the context of closed and open economies, in view of the applicable institutional context. Towards that, the necessary emphasis will be given to monetary policy instruments and its transmission mechanism in the underlying economic theories’ framework.

Program

Chapter 1 - Money
Chapter 2 – The demand for money
Chapter 3 – Money supply
Chapter 4 – The conduct of monetary policy
Chapter 5 – Rules in the conduct of monetary policy
Chapter 6 – Money and the theories on the determination of interest rates and prices
Chapter 7 – Interest rates
Chapter 8 – Term structure of interest rates
Chapter 9 – The impact of monetary policy on external economic variables
Chapter 10 – Capital flows and the balance of payments adjustment mechanism

Mandatory literature

Lucket, Dudley;; Money and Banking, , Mc Graw-Hill International Student Editions, 1986
Mishkin, F.; The Economics of Money, Banking and Financial Markets , Harper Collins College Publishers, 2006
Ethier, Wilfred J.; Modern International Economics, W. W. Norton & Company, 1995

Complementary Bibliography

Nagatani, K.; Monetary Theory, North-Holland, 1978
Fernandes, Abel C.; Manual de Gestão Financeira Internacional, Associação Industrial Portuense - Formação Profissional, 1993
Chacholiades, Miltiades; International Monetary Theory and Policy, McGraw-Hill, 1978

Teaching methods and learning activities

The course is based on a theoretical component and a practical component where students become familiar with the use of the concepts and the interpretation of results. In order to link the subjects of the course with the economic reality, news from the economic press will be read and interpreted.

Evaluation Type

Distributed evaluation with final exam

Eligibility for exams

In order to be examined on the basis of two tests, students must attend a minimum number of classes. The minimum requirement is that students must attend 75% of the classes. Attendance is calculated as the ratio between the number of classes effectively attended by the student and the number of classes taught until the date of the test.

Students participating in this continuous examination process cannot choose other form of evaluation.
The two tests evaluate different parts of the syllabus and have different weights in the final grade.

Calculation formula of final grade

Continuous evaluation process: the final grade is the weighted average of the grades obtained in the following components:
- 1st Test: 40%
- 2nd Test: 60%

The first test has duration of 1h 15m and the second a duration of 2h.
Final exam evaluation: the final grade is the grade obtained in the final exam.

Classification improvement

As in the in the general rule of evaluation of knowledge of the Faculty (RAC).

Observations

If the student misses one component of the continuous evaluation process, the student loses the right to remain in this form of evaluation.