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NBS8018 : International Money and Banking

  • Offered for Year: 2022/23
  • Module Leader(s): Dr Saumik Paul
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semester 1 Credit Value: 10
ECTS Credits: 5.0


To provide students with an advanced understanding of the role of money and banking institutions in the international economy.

The module aims to provide the theoretical basis and empirical evidence for understanding the basic functioning of international financial markets and institutions. It starts with providing a thorough analysis of the international financial system and regulatory framework; it then concentrates on issues related to money and banking, such as money supply, money demand, and the determination of interest rates and exchange rates. It also analyses both theoretical underpinnings and empirical evidence of the aforementioned aspects of international money.

Outline Of Syllabus

1. Introduction: Money, banking, and financial markets
2. The functions and regulation of the financial system
3. Money 1: The definition(s) of money, functions of money, theories of the demand for money,
4. Money 2: Multiple deposit creation and the money supply process, the role of central banks
5. Interest rates 1: The behaviour of interest rates
6. Interest rates 2: The risk and term structure of interest rates, the bond market
7. International finance: The foreign exchange market, exchange rate regimes
8. The foreign exchange market: Determination of exchange rates in the short and long run, interactions between the foreign exchange market and the market for money

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Scheduled Learning And Teaching ActivitiesLecture141:0014:00pip lectures
Guided Independent StudyAssessment preparation and completion130:0030:00Time for students to complete formative and summative coursework and assessments
Guided Independent StudyDirected research and reading131:0031:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching31:003:00pip seminars
Structured Guided LearningStructured non-synchronous discussion20:301:00N/A
Guided Independent StudyIndependent study119:0019:00balance to 100
Scheduled Learning And Teaching ActivitiesScheduled on-line contact time21:002:00N/A
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 Methods

The format of resits will be determined by the Board of Examiners

Exam Pairings
Module Code Module Title Semester Comment
Other Assessment
Description Semester When Set Percentage Comment
Essay1M1002000 words
Formative Assessments
Description Semester When Set Comment
Prob solv exercises1MSeminar questions provided
Prob solv exercises1MInstantaneous feedback to students' answers in multiple-choice test in class
Assessment Rationale And Relationship

The nature of this module makes it suitable for assessing students with an essay. It needs to test students' knowledge, in-depth understanding and ability to articulate their subjective opinions on the international financial markets.

Reading Lists