unit outline(updated)
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Unit Outline(Updated)TRANSCRIPT
Unit Outline1. Course Name: Thoery of Money and Banking
2. Lecturers:
- Nguyen Thanh Nhan, M.A. Email: [email protected] Tel: 0949788338
- Vu Ngoc Huong, MSc. Email: [email protected] Tel: 0974999938
- Vu Hai Yen, MSc. Email: [email protected] Tel: 0902118486
- Tran Thanh Ngan, MSc. Email: [email protected] Tel: 0983612390
3. Prerequisites: Macroeconomics, Microeconomics, Basic Mathematics
4. Credits: 3
5.Unit Description:
- Provides an overview of the economic principles that underlines the financial system operations.
- Examines the impact of monetary policy on the economy with particular emphasis on the roles of Central bank, other banking and financial institutions.
- To give students a solid theoretical foundation in applied macroeconomics, monetary economics and financial economics so that they can understand the practical application of theory as it is applied to monetary policy, banking and financial market activities.
6. Materials:
6.1. Textbook: Mishkin, Frederic S. (2004). The Economics of Money, Banking, and Financial Markets, Seven Edition.
6.2. Additional readings:
- Seccheti, Stephen G. (2006). Money, Banking and Financial Markets
- Peter Howells & Keith Bain (2008). The Economics of Money, Banking and Finance, 4th
Edition
- The Economist magazine: http://www.economist.com
Organization Website
Central Bank of Vietnam www.sbv.gov.vn
IMF www.imf.org
BIS www.bis.org
World Bank www.worldbank.org
US Federal Reserve www.federalreserves.gov
European Central Bank www.ecb.int
Bank for Foreign Trade of Vietnam www.vietcombank.com.vn
Vietnam Joint Stock Commercial Bank for Industry and Trade
www.vietinbank.com.vn
Bank of Japan http://www.boj.or.jp/en/
People’s Bank of China http://www.pbc.gov.cn
Vietnam Economy News www.vn.economy.com
General Statistics Office of Vietnam http://www.gso.gov.vn
www.google.com.vn
7. Learning Objectives
- Understand the theory of money, banking, financial institutions and interest rates
- Understand the basics of monetary policy, and its implications for the macro economy
Topics covered include:
+ The overview of financial system+ Theories of money demand and money supply+ The relationship between money supply and overall economic variables such as inflation, economic growth, unemployment and exchange rate+ The theoretical and practical aspects of monetary policy and money creation+ The role of central bank and its ability to stabilize the economy.
8. Assessment
Item WeightGroup Assignment 30%Study Attitude 10%Final exam 60%
- Group Assignment: Topic “Interest rate policy” in countries: US, EU, Japan, Thailand and Mexico
- Final exam: MCQs, short and long answer questions, and exercise (topic 4 and topic 5)
9. Schedule:
The reading list will be modified during the course; there will be some additional readings
Week Topic Initial Reading
1 Topic 1: An Overview of the Financial System- Components of financial system- Financial institutions- Financial markets- End users of financial system- Regulatory authorities
- Chapter 2 Frederic S. Mishkin
2 Topic 2: Financial Market- Functions of Financial Market- Structure of Financial Market- Financial Market Instruments.
- Chapter 2 Frederic S. Mishkin
3 Topic 3: Financial Intermediaries- Deposit takers- Non-deposit takers
- Chapter 9,10,12 Frederic S. Mishkin
4, 5 Topic 4: Interest Rate- Measuring Interest Rate- Factors influence interest rate
Chapter 4,5,6 Frederic S. Mishkin
6 Practice Topic 4
7, 8 Topic 5: Money Demand and Money Supply- Theories of Money Demand- Money Supply: Measurement, Money Supply Process, Models of Money Supply
- Chapter 15, 16, 22 Frederic S. Mishkin
9 Practice Topic 5
10 Topic 6: Inflation- Measures- Causes of Inflation- Effects of Inflation- Controlling Inflation
- Chapter 27 Frederic S. Mishkin
11, 12 Discussion Group Assignment
13 Topic 7: Central Bank- Central Bank independence- Functions of Central Bank
- Chapter 14 Frederic S. Mishkin
14, 15 Topic 8: Monetary Policy- Goals- Instruments
- Chapter 14 Frederic S. Mishkin- Chapter 17, 18 Frederic S. Mishkin
16 Course Review
Other Class Policies (Please read carefully) 1) Mobile phones can be switched on but their sound MUST be off! Mobile phone usage is NOT
allowed during the lecture. If you need to use your phone, please quietly leave the lecture hall. 2) Mobile phones are NOT calculators. You will definitely need a calculator on the exam, and
your mobile phone will be switched off during the exam. Therefore, bring a calculator for the exam.
3) All emails to the teacher regarding either a class question or a request for an appointment will have the subject: ―Banking and Monetary Policy: a question/request, etc
4) Ideally, all class lecture notes and presentations will be distributed BEFORE each lecture on the class mail, so that students can print them and take notes on them. Therefore, students are responsible for checking the class-mail.