Economics and Finance(English) | |||||
Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 |
Course Code: | FNCE405 | ||||||||
Course Name: | Central Banking and Monetary Policy | ||||||||
Course Semester: | Fall | ||||||||
Course Credits: |
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Language of instruction: | EN | ||||||||
Course Requisites: | |||||||||
Does the Course Require Work Experience?: | No | ||||||||
Type of course: | Department Elective | ||||||||
Course Level: |
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Mode of Delivery: | Face to face | ||||||||
Course Coordinator : | Dr.Öğr.Üyesi MEHMET GÖKHAN GÖKTAN | ||||||||
Course Lecturer(s): |
Dr.Öğr.Üyesi MEHMET GÖKHAN GÖKTAN |
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Course Assistants: |
Course Objectives: | The objective of this course is to introduce the basics of the goals of central banks, the central bank’s balance sheet; monetary base; multiple deposit creation; the money multiplier; the interbank market (market for reserves); open market operations; discount policy; reserve requirements; monetary targeting; inflation targeting; Taylor rule; unsterilized and sterilized interventions; exchange rate targeting; transmission mechanisms of monetary policy; zero interest rate policy; quantitative easing policy; discussion on modern money creation and its effects on economic activity. |
Course Content: | The goals of central banks, the central bank’s balance sheet; monetary base; multiple deposit creation; the money multiplier; the interbank market (market for reserves); open market operations; discount policy; reserve requirements; monetary targeting; inflation targeting; Taylor rule; unsterilized and sterilized interventions; exchange rate targeting; transmission mechanisms of monetary policy; zero interest rate policy; quantitative easing policy; discussion on modern money creation and its effects on economic activity. |
The students who have succeeded in this course;
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Week | Subject | Related Preparation |
1) | • Describe the course • Quick Recap: Define Money in economic sense and Explain the Functions of Money • Quick Recap: Recognize Money and the monetary aggregates • Quick Recap: Define The time value of money and the present value concept • Quick Recap: Recognize the Bond Market • Syllabus. • Explain the Meaning of Money • Explain Medium of Exchange as function money. • Explain Unit of Account as a Function of Money. • Explain Store of Value as a Function of Money. • Discuss the ways how to measure Interest Rates. • Discuss Present Value. • Discuss Yield to Maturity. | none |
2) | • Quick Recap: Recognize the General Principles of Banking • Explain the Price Stability Goal and the Nominal Anchor • State the Other Goals of Monetary Policy • Discussion: Should the Price Stability Be the Primary Goal of Monetary Policy? • Explain the Structure and Independence of the Central Banks in accordance with the ethical and political considerations throughout the world. • Analyze FED • Analyze European Central Bank • Analyze Bank of Canada • Analyze Bank of Japan • Analyze Central Bank of Republic of Turkey • Analyze the Trend Toward Greater Independence | Read, in Mishkin, Chapters 3&4&5 on pages 95-161 Read, in Mishkin, Chapters 9&14 on pages 232-260 and 360-385. |
3) | • Define the Players in the Money Supply • Explain the CB's Balance Sheet • Illustrate the control of the Monetary Base • Explain the Multiple Deposit Creation • State and discuss the factors that determine the Money Supply • Analyze the derivation of Money Multiplier • Identify Four Players in the Money Supply Process • Analyze The Fed’s Balance Sheet • Discuss Control of the Monetary Base • Discuss Open Market Operations • Recognize Discount Loans (Liqudity Window) Policy • Justify Multiple Deposit Creation | Read, in Mishkin, chapter 15 on pages 386-410. Review Lecture Notes. |
Course Notes / Textbooks: | The Economics of Money, Banking and Financial Markets Frederick S. Mishkin, 11th ed., (Global Edition) 2016 ISBN-10: 1-29-209418-4 • ISBN-13: 978-1-292-09418-2 |
References: | The Economics of Money, Banking and Financial Markets Frederick S. Mishkin, 11th ed., (Global Edition) 2016 ISBN-10: 1-29-209418-4 • ISBN-13: 978-1-292-09418-2 |
Learning Outcomes | 1 |
2 |
4 |
3 |
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Program Outcomes | ||||||||
1) Explain the advances in the area of economics and finance within the framework of scientific methodology, theories and models. | ||||||||
2) Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. | ||||||||
3) Explain the evolution of financial markets and institutions in a historical context and define how they operate. | ||||||||
4) Recognise the basic principles and regulations in the financial sector. | ||||||||
5) Discover and create entrepreneurial opportunities to successfully establish and develop their own ventures. | ||||||||
6) Recognise, interpret and discuss the current economic issues both at the national and global levels. | ||||||||
7) Have the English proficiency in following and interpreting the developments in the areas of economics and finance and in conducting written and oral communication. | ||||||||
8) Express the role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management. | ||||||||
9) Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society. |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution | |
1) | Explain the advances in the area of economics and finance within the framework of scientific methodology, theories and models. | 3 |
2) | Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. | 4 |
3) | Explain the evolution of financial markets and institutions in a historical context and define how they operate. | 4 |
4) | Recognise the basic principles and regulations in the financial sector. | 4 |
5) | Discover and create entrepreneurial opportunities to successfully establish and develop their own ventures. | 4 |
6) | Recognise, interpret and discuss the current economic issues both at the national and global levels. | 3 |
7) | Have the English proficiency in following and interpreting the developments in the areas of economics and finance and in conducting written and oral communication. | 3 |
8) | Express the role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management. | 3 |
9) | Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society. | 4 |
Field Study | |
Lesson | |
Reading | |
Homework |
Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing) | |
Oral Examination | |
Individual Project | |
Group project |
Semester Requirements | Number of Activities | Level of Contribution |
Midterms | 1 | % 40 |
Final | 1 | % 60 |
total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 40 | |
PERCENTAGE OF FINAL WORK | % 60 | |
total | % 100 |
Activities | Number of Activities | Workload |
Course Hours | 16 | 48 |
Study Hours Out of Class | 16 | 52 |
Project | 1 | 12 |
Homework Assignments | 4 | 12 |
Quizzes | 3 | 6 |
Midterms | 1 | 15 |
Final | 1 | 22 |
Total Workload | 167 |