EC320-Money and Banking

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Spring term module
Pre-requisites: EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics
Non-modular pre-requisites:
Co-requisites: EC202 Intermediate Macroeconomics
Modules excluded:
Module version for: 2017/8

Module Convenor: Dr Mark Guzman


Summary module description:
Money and banking builds on the some of the concepts first introduced in intermediate macroeconomics. It is designed to provide you with a more in-depth understanding of the fundamental principles and analytic concepts related to how money and monetary policy affect the economy. In particular, by the end of this module students should have a clear understanding of both the banking system and the central bank - as well as the interrelationship between these institutions and monetary policy, interest rates, exchange rates, and inflation.

The primary focus of this module is on understanding money and monetary policy and their impact on the macroeconomy. This includes having a basic understanding of the principle parts of a financial system, of banks and their roles both in the financial system and with respect to monetary policy, of money, and of central banks and monetary policy. Additional content covered may include 1) assets supply and demand, 2) interest rate determination, 3) stock and bond markets, 4) exchange rates, 5) the money creation process, 6) the relationship between money, inflation, and monetary policy, and 7) the regulation history and structure of the banking system.

Assessable learning outcomes:
Students should be able to identify the various parts necessary for a function financial system and explain their interdependence. They should also be able to explain the uniqueness of money as a financial asset and its role in the macroeconomy. They should also posses an in-depth understanding of monetary policy and its impact on the broader economy. Finally, students should be able to take the theoretical models learned and be able to apply then to real-world phenomenon such as financial crises.

Additional outcomes:
Students will be required to complete coursework such as problem sets, test, essays, presentations, etc. In the process of completing these types of assignments, they must learn skills required to do relevant research, write reports, produce concise relevant presentations, understand technical articles, and apply theoretical knowledge to real world situations.

Outline content:
Basic topics include: Understanding the basics of financial markets, financial asset, financial institutions, money and central banks; understanding banks and their roles in the financial system and with respect to monetary policy; understanding money; and understanding central banks and monetary policy. Additional topics may include: assets supply and demand, interest rate determination, stock and bond markets, exchange rates, the money creation process, the relationship between money, inflation, and monetary policy, the regulation history and structure of the banking system, and basic theoretical models of banks and banking crises.

Brief description of teaching and learning methods:
Detailed guidance on the topics covered will be provided in the 20 x 1.25 hours weekly lectures, together with occasional handouts covering the material discussed, examples, exercises and solutions to facilitate understanding of key concepts. Students may be required to do exercises corresponding to each topic, to read a significant amount of journal articles, and to undertake research using the library, internet, etc.

Contact hours:
  Autumn Spring Summer
Lectures 25 2
Guided independent study 155 18
Total hours by term 180.00 20.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 50
Set exercise 25
Class test administered by School 25

Other information on summative assessment:
Coursework may include a number of different methods for assessing student’s knowledge. These may include, but are not limited to:

Problem Sets: Numerous short assignments requiring students to provide short answers and numerically solve relevant problems
Essay: A written work intended to allow the student to demonstrate his/her ability to synthesize many of the concepts covered throughout the term. Usually 1000-3000 words in length, original in nature, and due by a specific date
Quizzes: Short tests intended to ascertain students understanding of recent topics discussed in class.
Test: An in-class exam aimed primarily at ascertaining a student’s understanding and comprehension of a subset of the materials covered during lectures.

The exact requirements of the module for a given term (i.e. essay specifics, etc.) will be explicitly detailed in the syllabus handed out at the beginning of each term in which the module is offered. Coursework has a weight of 50% in the final assessment mark. The exact weights of the different pieces of coursework required will be explicitly stated in the syllabus.

Formative assessment methods:

Penalties for late submission:
The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • The University policy statement on penalties for late submission can be found at:
    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    Length of examination:
    One 3-hour unseen written paper.
    Part 3 examinations are held in the Summer term.

    Requirements for a pass:
    A minimum overall mark of 40%.

    Reassessment arrangements:
    Re-examination for all modules takes place in August/September of the same year.
    Re-assessment is by examination only; coursework is not included at the second attempt.

    Additional Costs (specified where applicable):

    1) Required text books: The Economics of Money, Banking, & Financial Markets: European Edition, by Frederic S. Mishkin, Kent Matthews, and Massimo Giuliodori, 2013, Pearson Publishers, ISBN: 978-0-273-73180-1, (Estimated Price: £59.84)

    Last updated: 31 March 2017

    Things to do now