Monetary Economics is intended to equip students with basic knowledge of the operation of financial system, measurement of money; rationale for studying demand for money, existence and stably of demand for money, Approaches to demand and supply of money and money creation process, approaches to the interactions between monetary and real sectors: The transmission mechanism, effectiveness of monetary and fiscal policies; Money, Inflation and Interest rates; Monetary policy--objectives, targets and instruments; theories of crises, Monetary policy in developing countries: implications of monetary theories and developing countries, direct and indirect approaches to monetary policy; Monetary policy in Ethiopia.
Course Objective
- To enable students to understand the evolution of money in historical context
- To equip students with the knowledge to explain the rationale for the existence and economic role of Banks and non-Bank Financial institutions
- To enable students, understand and demonstrate the money supply process, monetary base, the determinants of money supply, how the behaviour of the general public and the banking affect the money creation process
- To demonstrate to learner’s theories of Money, money demand and its determinants.