Money and Banking

Catalog description

Money and Banking. This course studies the role that financial markets, institutions, and money play in resource allocation. Financial intermediation and the role of banks in the economic system are analyzed and the economic rationale behind banking regulation is studies. The course examines how monetary policy influences interest rates and asset markets, such as the bond market and the stock market. Finally, the instruments and goals of monetary policy are discussed, focusing in particular on credibility and commitment for central banks. All of the questions are explored analytically, using the tools of economic theory.