- Monetary Theory

Catalog description

The role money plays in determining economic outcomes, such as the level of employment, the aggregate price level, and the rate of economic growth, is one of the more controversial issues in economics. To get a handle on these controversies, this course explores the institutional structure of the U.S. monetary system, including the Federal Reserve, the body charged with the conduct of U.S. monetary policy. Then, the course compares and contrasts different perspectives on the role money plays in economic activity. The goal is to combine knowledge of the institutional structure of the U.S. monetary system with an understanding of the various theoretical perspectives on monetary theory in order to gain some insight about the best policy options for achieving full employment, price stability, and financial stability. The course also addresses the various economic challenges faced by central banks around the world, including Japan, China, the European Union, and developing countries.