Newcastle University

Aims

This module aims to provide students with an in-depth understanding of the economics and political economy of central banking. An introduction to the relevant monetary policy will be provided within the module.

Original Summary:
The effective operation of central banks is crucial to economic stability. This module covers the main issues surrounding the economics and political economy of central banking, including the case for central bank independence and the use of inflation targets.

Outline Of Syllabus

1. The Economics of Monetary Policy: Gaps, “Neutral” Rates, and Taylor Rules.
2. The Culture of Central Banking.
3. Central Bank Independence.
4. Central Banking and Democracy.
5. The Trend toward Transparency.
6. Decision making by Committee.
7. Asset Bubbles and Monetary Policy.
8. Inflation Targeting.

Teaching Rationale And Relationship

• Lectures provide the basic structure of the methods and theories that are introduced and an overview of the current issues.

• Seminars provide an opportunity to enhance understanding of the theoretical aspects of the module.

Assessment Rationale And Relationship

The examination tests understanding of the theoretical and current issues.