Money and Capital Markets

Catalog description

This course provides the student with a comprehensive examination of macroeconomic policies, with particular emphasis on monetary policy and its role in maintaining sustainable economic growth and stable prices. Special attention is devoted to the important role of money and capital markets in transmitting monetary policy and in business fixed capital formation. Also analyzed will be factors influencing interest rates, the yield curve, and real versus nominal interest rates. There will be an examination of asset price bubbles and financial crises, as well as how central banks should respond to maintain orderly financial markets and minimize the impact of these events on spending and output. The course also raises awareness of the importance of private savings-funded capital investment to boost productivity growth, thereby improving the standard of living for all.