Information Package / Course Catalogue
Monetary Economics
Course Code: EKO523
Course Type: Area Elective
Couse Group: Second Cycle (Master's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

To acquaint the students with money basics, monetary policies, inflation, interest, exchange rates theories and practices

Course Content

This course will explore the theoretical and empirical analysis of the effect of money on economy. The effect of money, credit and liquidity on income, employment, economic growth and inflation will be analyzed. The goals of monetary policy, the methods used to obtain these goals, and the effects of these methods will be discussed. Moreover, issues such as the functioning of monetary policy in international financial system; the relationship of the financial system with the real economy, monetary policy channels (money, bank credit, and balance sheet channels), and reasons and outcomes of inflation will be undertaken.

Name of Lecturer(s)
Learning Outcomes
1.May be capable of analytical thought,
2.Public and private sector may achieve success in professional examinations,
3.Financial markets may have the ability to analyze the data.
4.Describe the definition and functions of money.
5.Analyze the Money Demand Equation, Money Demand, and Monetary Targeting
Recommended or Required Reading
1.Keyder, N.(2005), Para Teori ve Uygulama, Ankara.
Weekly Detailed Course Contents
Week 1 - Theoretical
Basic Concepts, Definitions (the emergence of money, monetary theory, monetary policy, the definition of money and the functions, features and definitions of the money supply of the requested definitions of money)
Week 2 - Theoretical
Money Demand Theories (Classical Approach, Paracin Approach, Keynesian and Neo-Keynesian Approach)
Week 3 - Theoretical
Theories of Money Supply (content and development, the classical approach, the Chicago Approach, a Gurley-Shaw Approach, Approach to Containing the borrower)
Week 4 - Theoretical
Interest Theories (Classical theory of interest, Wicksell'in theory, Keynes' interest theory, Neo-Keynesian Synthesis Hicks-Hansen, Tobin Portfolio Theory)
Week 5 - Theoretical
Exchange Rate Systems
Week 6 - Theoretical
Monetary and fiscal policies, exchange rate systems, achieving a balance of internal and external effectiveness analysis based on
Week 7 - Intermediate Exam
Revision of Midterm Exams
Week 8 - Intermediate Exam
Midterm Exams
Week 9 - Theoretical
Monetary and fiscal policies, exchange rate systems, achieving a balance of internal and external effectiveness analysis based on
Week 10 - Theoretical
These objectives be achieved through monetary policy objectives and the tools used.
Week 12 - Theoretical
Central Banks, Central Bank independence, the importance and interpretation of the Central Bank Balance Sheet
Week 13 - Theoretical
As an alternative to the Central Bank Monetary Board of the institution
Week 14 - Theoretical
Theory of Monetary Policy (Rules-amended, Discussions, Time Inconsistency Problem).
Week 15 - Final Exam
Final Exams
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory153390
Midterm Examination110212
Final Examination120222
TOTAL WORKLOAD (hours)124
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
OÇ-1
4
4
4
4
4
4
4
4
4
4
4
4
4
OÇ-2
4
4
4
4
4
4
4
4
4
4
4
4
4
OÇ-3
4
4
4
4
4
4
4
4
4
4
4
4
4
OÇ-4
4
4
4
4
4
4
4
4
4
4
4
4
4
OÇ-5
4
4
4
4
4
4
4
4
4
4
4
4
4
Adnan Menderes University - Information Package / Course Catalogue