Information Package / Course Catalogue
Monetary Policy
Course Code: ECO304
Course Type: Required
Couse Group: First Cycle (Bachelor's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 6
Objectives of the Course

The aim of this lesson is to make students get the theoretical parts of monetary policy. In that sense, presenting the purpose of central banks and how to use the means and the results of them in the frame of transfer mechanism is aimed. Also, the monetary policy of TCMB from past to present is tried to be explained.

Course Content

Tools of Monetary Policy, Cost of Inflation and Inflation Theory, Price Stability and Importance, Time Inconsistency and Credibility Problem, Central Bank Independence, Investigation of the Central Bank Monetary Policy.

Name of Lecturer(s)
Assoc. Prof. Birgül CAMBAZOĞLU
Lec. Özgür BALMUMCU
Learning Outcomes
1.Comprehends policies of central banks.
2.States basic concepts related to monetary policy.
3.Explains monetary policy of Central Bank.
4.States theoretical foundations of monetary policy.
5.Describes simple intertemporal utility function, knows Transmission Mechanism Channels.
Recommended or Required Reading
1.Hanifi ASLAN, Para Teori ve Politikası, Alfa Aktüel Yayınları.
2.Gülsün Gürkan YAY, Para ve Finans Teori-Politika, İstanbul Bilgi Üniversitesi Yayınları.
3.Bora SÜSLÜ - Özgür BALMUMCU, Modern Para Teorisi ve Politikası, Efil Yayınevi.
4.Merih PAYA, Para Teorisi ve Para Politikası, Türkmen Kitabevi.
5.John Maynard KEYNES - Para Üzerine Bir İnceleme, Türkiye İş Bankası Yayınları.
Weekly Detailed Course Contents
Week 1 - Theoretical
What is Monetary Policy? The Scientific Approach and the Art of Politics
Week 2 - Theoretical
New Keynesian Economics: Price Rigidity, Phillips Curve and NAIRU Hypothesis
Week 3 - Theoretical
Optimal Monetary Policy: Tools and Purposes
Week 4 - Theoretical
Transmission Mechanism
Week 5 - Theoretical
Transmission Mechanism
Week 6 - Theoretical
Fundamentals of Monetary Policy Practice: Tinbergen & Theil Analysis, Poole Analysis
Week 7 - Theoretical
Monetary Authority Decision Problem: Time Inconsistency and Central Bank Independence
Week 8 - Theoretical
Monetary Policy Preference in Ensuring Credibility: Discretionary Policies, Rule and Deception Policies
Week 9 - Theoretical
Monetary Policy Practices in Ensuring Price Stability: Inflation Targeting
Week 10 - Theoretical
Monetary Policy Practices in Ensuring Price Stability: Commitment of Instruments and Monetary Targeting
Week 11 - Theoretical
Money and Public Finance: Inflationary Monetary Policy
Week 12 - Theoretical
Money in Open Economies: Basic Variables and Foreign Exchange Market
Week 13 - Theoretical
Money in Open Economies: Exchange Rate Determination Theories and Exchange Rate Policies
Week 14 - Theoretical
Money in Open Economies: Monetary Condition Index and Efficiency of Monetary Policy
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory140342
Reading140228
Individual Work140342
Midterm Examination115116
Final Examination121122
TOTAL WORKLOAD (hours)150
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
PÇ-10
PÇ-11
PÇ-12
PÇ-13
PÇ-14
PÇ-15
OÇ-1
4
4
3
3
4
4
1
OÇ-2
4
4
3
2
4
4
1
OÇ-3
4
4
3
3
4
4
1
OÇ-4
4
4
3
2
4
4
1
OÇ-5
4
4
3
3
4
4
1
Adnan Menderes University - Information Package / Course Catalogue
2026