Monetary Economics

Code:

1EC302

Acronym:

EM

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2024/2025 - 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	280	Bologna Syllabus since 2012	3	-	6	63	162

Teaching language

Portuguese

Objectives

Learning outcomes and competences

With this course, the intention is for students to acquire a strong command and understanding of the fundamental aspects of monetary theory, as well as its definition and implementation by central banks.

Working method

Presencial

Program

Chapter 1 - Money and the Evolution of Monetary Forms and Systems

1. Direct Exchange Economies
2. Monetary Economies
3. Brief Reference to the Historical Evolution of Monetary Forms and Systems

Chapter 2 - The Creation and Destruction Process of Currency 

1. Structure of the Financial System
2. Monetary Aggregates
3. The Static Model of Currency Creation and Destruction
4. The Dynamic Model of Currency Creation and Destruction – The Money Multiplier Model.
5. The Problem of Controlling the Monetary Base and the Money Multiplier by the Central Bank, and Conducting Monetary Policy through the Supply Side

Chapter 3 - Money Demand

Chapter 4 - Money, Inflation, Output, and Interest Rates

Chapter 5 - Determination of Medium and Long-Term Interest Rates

Chapter 6 - Conducting Conventional Monetary Policy 

1. The Strategy and Tactics of Monetary Policy
2. Typology of Monetary Policy Objectives
3. Conventional Monetary Policy Instruments
4. Conducting Monetary Policy through Liquidity Demand

       1. Conventional monetary policy transmission
       2. Unconventional monetary policy transmission

Chapter 9 - The Future of Monetary Policy

 

Mandatory literature

Abel Luís da Costa Fernandes; A teoria e a política monetárias na actualidade. ISBN: 978-972-40-8426-8

Complementary Bibliography

Abel Luís da Costa Fernandes; As políticas monetárias não convencionais da actualidade. ISBN: 978-972-40-9973-6
Mishkin, Frederic S.; The economics of money, banking, and financial markets, Pearson, 2019. ISBN: 978-1-292-26885-9

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. To better integrate the content of the discipline into the surrounding economic reality, real-life case analyses are employed. These cases allow students to apply their knowledge and skills to analyze and solve complex problems interactively related to the definition and execution of monetary policy. By studying and discussing these cases, students can develop critical thinking, decision-making, and problem-solving abilities.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Exame	100,00
Participação presencial	0,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Frequência das aulas	58,50
Estudo autónomo	103,50
Total:	162,00

Eligibility for exams

Alternative 1 (distributed assessment): two tests that assess different parts of the curricular unit's program. The first test will take place during the semester, and the second test will take place on the date of the regular season exam.

Alternative 2: final exam.

Calculation formula of final grade

Calculation formula of final grade

Alternative 1 (distributed assessment): two tests, each one with a a weight of 50%.

Alternative 2: classification of the final exam.

Examinations or Special Assignments

n.a.

Internship work/project

n.a.

Special assessment (TE, DA, ...)

All students are assessed in the same manner, regardless of their status.

Classification improvement

Through resit examination or by attending the course as outlined in the Knowledge Assessment Regulations (RAC).