NBS8204 : Central Banking

Semester 2 Credit Value: 10
ECTS Credits: 5.0


The effective operation of central banks is crucial to economic performance. 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

Topics covered include:
1) The link between central banks’ monetary policy and inflation.
2) A short-run macroeconomic model of the economy.
3) The link between inflation and output.
4) The importance of expectations.
5) Inflation bias, credibility and time inconsistency.

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion132:0032:00N/A
Scheduled Learning And Teaching ActivitiesLecture72:0014:00N/A
Guided Independent StudyDirected research and reading125:0025:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching41:004:00N/A
Guided Independent StudyIndependent study125:0025:00N/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

Description Length Semester When Set Percentage Comment
Written Examination902A100N/A
Exam Pairings
Module Code Module Title Semester Comment
LBS8204Central Banking2London equivalent module
Formative Assessments
Description Semester When Set Comment
Prob solv exercises1MProblem solving exercises via Blackboard
Assessment Rationale And Relationship

The written unseen exam is an appropriate way to provide evidence of a student’s understanding of the current theory and practice of Central Banking acquired from studying various sources, their ability to compare monetary policy regimes and to critically assess key issues in this subject area.

Reading Lists