Monetary Economics and Banking

Course unit title

Monetary Economics and Banking

Course unit code

PNE896

Type of course unit (compulsory, optional)

Optional

Level of course unit (according to

EQF: first cycle Bachelor, second cycle Master)

Third cycle Doctor

Year of study when the course unit is delivered

(if applicable)

Year 1

Semester/trimester when the course unit is delivered

Semester 2

Number of ECTS credits allocated

4.8 ECTS

Name of lecturer(s)

Dr. Rudi Purwono

Dr. Wisnu Wibowo

Dr. Wasiaturrahma

Learning outcomes of the course unit

Students are able to: (1) analyze comprehensively the economic system and mechanism from the monetary side; (2) evaluate various monetary policies taken by the central bank and present their arguments based on theoretical and empirical frameworks.

Mode of delivery (face-to-face, distance learning)

Face to face (offline) and or distance learning (online)

Prerequisites and co-requisites (if applicable)

No

Course content

(1) The mechanism-design approach to monetary theory; (2) New monetarist economics: model; (3) money and inflation: some critical issues; (4) rational inattention and monetary economics; (5) imperfect information and aggregate supply; (6) DSGE models for monetary policy analysis; (7) how has the monetary transmission mechanism evolved over time?; (8) inflation persistance; (9) financial intermediation & credit policy in business cycle analysis; (10) financial intermediaries and monetary economics; (11) the optimal rate of inflation; (12) optimal monetary stabilization policy; (13) simple and robust rules for monetary policy; (14) optimal monetary policy in open economies

Recommended or required

reading and other learning resources/tools

Friedman, B. M., & F.H. Hahn. 2011. Handbook of Monetary Economics. North Holland

Freixas, X. & Rochet, J.C. 2009. Microeconomic of Banking. MIT Press.

Walsh, C. E. 2003. Monetary Theory and Policy. 2nd Ed. MIT Press. 

Mishkin. 2009. The economics of money, banking and financial markets. 9th Ed

Bernanke, B.S., T. Laubach., F. S. Mishkin., & A. S. Posen. 1999. Inflation Targeting. Princeton University Press

Planned learning activities and teaching methods

Lecture course, presentation and discussion, assignment

Language of instruction

In Bahasa (Indonesian Language) and English

Assessment methods and criteria

Exam, individual assignment