This course examines the economics of money, banking, and financial markets, with a focus on how monetary systems and financial institutions shape macroeconomic outcomes. The first part of the course investigates the structure and functions of financial markets and institutions, the economics of financial intermediation, and recent developments in financial innovation. The second part examines the theory and practice of monetary policy, analysing how central banks set policy objectives, use instruments such as interest rates and unconventional tools, and communicate with markets. Policy frameworks are studied in the context of both large economies such as the United States and the euro area, and small open economies such as Australia, drawing on historical and contemporary episodes to illustrate how monetary policy responds to evolving economic conditions.
Learning Outcomes
Upon successful completion, students will have the knowledge and skills to:
- Demonstrate a broad and coherent understanding of monetary economics and banking theory, including the structure of financial markets, the role of financial intermediaries, and the frameworks used by central banks to conduct monetary policy.
- Apply established theoretical models to analyse and interpret developments in money, banking, and financial markets, including interest rate determination, monetary transmission, and the behaviour of financial institutions.
- Evaluate monetary policy decisions and central bank communication in both large and small open economies, using appropriate analytical tools and drawing on relevant empirical evidence.
- Assess the implications of financial innovation and structural change in the banking sector for monetary policy and financial stability.
- Communicate findings and arguments clearly and coherently in written and/or oral form, demonstrating an ability to engage with current policy debates in monetary economics.
Other Information
Indicative Assessment
- Assessment will consist of a final exam, mid-semester exam(s), quizzes, assignments, oral assessment, or some combination thereof. See the Class Summary for details. (100) [LO 1,2,3,4,5]
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Workload
130 hours in total over the semester consisting of lectures, tutorials and private study time.
Inherent Requirements
This course requires the completion of an oral assessment; as such, completing the oral assessment is an inherent requirement, as it develops oral communication skills.
Requisite and Incompatibility
Prescribed Texts
See Class Summary
Fees
Tuition fees are for the academic year indicated at the top of the page.
Commonwealth Support (CSP) Students
If you have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). More information about your student contribution amount for each course at Fees.
- Student Contribution Band:
- 34
- Unit value:
- 6 units
If you are a domestic graduate coursework student with a Domestic Tuition Fee (DTF) place or international student you will be required to pay course tuition fees (see below). Course tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
Where there is a unit range displayed for this course, not all unit options below may be available.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
Second Semester
| Class number | Class start date | Last day to enrol | Census date | Class end date | Mode Of Delivery | Class Summary |
|---|---|---|---|---|---|---|
| 10162 | 26 Jul 2027 | 02 Aug 2027 | 31 Aug 2027 | 29 Oct 2027 | In Person | N/A |