Course Description
The course provides an introduction to monetary theory, to the effects of monetary variables on the macroeconomic system, the role of the Central Bank and the conduct of monetary policy. Subjects covered include: The nature and function of money. Classical monetary theory, neutrality and inflation. Interest-rate feedback rules. Theories of the demand for money. The banking system, financial intermediation and the determinants of the money supply. The transmission mechanism of monetary policy, including theories of nominal rigidities and the Phillips curve. The term structure of interest rates. The theory and practice of monetary policy and the design of optimal policies. Monetary policy strategies, including inflation targeting. Policymaking in an uncertain environment. The interaction between monetary and fiscal policy and the arguments for Central Bank independence.
Course Content
- Introduction
and Overview of the Course
- Theories
of Monetary Policy
- Monetary Policy in
Developing Countries
- Financial
Institutions in Developing Countries
- Finance,
Growth and Development
- Financial
Liberalization in Developing Countries
- The Financial System and Monetary Policy in Ghana
Compulsory Reading Materials
- Baldwin, R. and C. Wyplosz (2004) The Economics of European Integration, McGraw-Hill
Optional Reading Materials
- Obstfeld,
M. and K. Rogoff (1996) Foundations of International Macroeconomics, MIT press.
- Mishkin,
Frederic S. (2003) The Economics of Money, Banking and
Finance, Sixth (or 7 th) Edition, New York: AddisonWesley
- Fry, M. (1995), Money, Interest, and Banking in Economic Development, 2nd ed., London: The Johns Hopkins University Press
- Central Bank of Ghana, Monetary Policy Report
- Facilitator: Sarah Anang