Monetary Theory and Finance (ECON205) | GSÜ

Content

Objective

To acquire knowledge of analysis on monetary theory and finance.

Course Content

In three main sections, namely money supply, money demand, monetary policy, after processing the theory of money with examples from TR, it is concluded with the analysis of the financial structure and financial markets in TR. In addition, examples from the monetary policy operation of the US Federal Reserve and the European Central Bank are given.

First of all, the information that financial markets are a financial system is conveyed. For this, Kalman (1960) System theory and literature are used. The separation of deterministic systems from stochastic systems is defined and the subject of the mathematical definition of the market system in which the decision-maker behavior is active is developed.

Course Learning Outcomes

The student who successfully completes the course will achieve the following gains:

System theory, Financial markets as a financial system.

Efficient Market Hypothesis and deviant decision-making processes, rationality.

Information about the relationship between the financial sector and the real sector

Competence to understand the theoretical background of current economic events

Ability to analyze the given situation and recommend appropriate monetary policy

Teaching and Learning Methods

The lesson is conducted with a classical method focused on teaching in the first weeks. In the coming weeks, the discussion method begins to gain weight

References

Koenig G. (2000), Analyse monétaire et financière, Economica, Chp. 4-9
Mishkin F.(2004), Monnaie, banque et marchés financiers, Pearson, 7ème édition
Devoluy (1994), Monnaie et problèmes financiers, Hachette, chp 3.
Özatay F. (2011), Parasal iktisat : kuram ve politika, Efil, chp. 3-4.

Weekly Contents

Theory Topics
Week	Weekly Contents
1	Part 1: Money supply. Part 1: The framework of the financial system
2	Episode 2. Money supply and its determinants: A. Various Monetary Sizes
3	B. Money supply and balance of payments relationship
4	C. Money supply and public budget balance relationship
5	D. Relationship between money supply and banking sector activities
6	Part 2: Money request, Part 1: Demand for money with transaction motive
7	Chapter 2: demand for money with caution and speculation motive
8	Part 3: Monetary Policy, Part 1: Impartiality of money
9	Part 2: Central Bank behavior (Theoretical framework)
10	Part 3: Monetary Policy practices, CBRT example
11	Monetary policy and transfer channel, Money market
12	Its role in capital market and financing activities (TR example)
13	Financing structure in TR
14	Revision

Practice Topics
Week	Weekly Contents
1	Part 1: Money supply. Part 1: The framework of the financial system
2	Episode 2. Money supply and its determinants: A. Various Monetary Sizes
3	B. Money supply and balance of payments relationship
4	C. Money supply and public budget balance relationship
5	D. Relationship between money supply and banking sector activities
6	Part 2: Money request, Part 1: Demand for money with transaction motive
7	Chapter 2: demand for money with caution and speculation motive
8	Part 3: Monetary Policy, Part 1: Impartiality of money
9	Part 2: Central Bank behavior (Theoretical framework)
10	Part 3: Monetary Policy practices, CBRT example
11	Monetary policy and transfer channel, Money market
12	Its role in capital market and financing activities (TR example)
13	Financing structure in TR
14	Revision

Assessment System

Contribution to Overall Grade
Activities	Number	Contribution
Contribution of in-term studies to overall grade	2	50
Contribution of final exam to overall grade	1	50
Total	3	100

In-Term Studies
Activities	Number	Contribution
Assignments	0	0
Presentation	0	0
Midterm Examinations (including preparation)	0	12
Project	0	0
Laboratory	0	0
Other Applications	0	0
Quiz	1	20
Term Paper/ Project	0	0
Portfolio Study	0	0
Reports	0	0
Learning Diary	0	0
Thesis/ Project	0	0
Seminar	0	0
Other	0	0
Make-up	0	0
Total	1	32

Relation of Proficiency

No	Program Learning Outcomes	Contribution
No	Program Learning Outcomes	1	2	3	4	5
1	Demonstrate a basic knowledge of different economic theories and main discussions driving current theoretical approaches			X
2	Demonstrate ability to use basic qualitative and quantitative methods to asses different economic questions of applied fields	X
3	Show a sound understanding of current economic discussions and problems					X
4	Have an effective and clear communication in written and oral formats in different public and professional contexts.		X
5	Demonstrate basic knowledge of the world economic history and a sound knowledge of the Turkish economic history	X
7	Demonstrate knowledge of standard quantitative techniques and empirical models used in economics	X
8	Show ability to apply basic economic theory to an applied topic				X
9	Show a basic understanding of analytical methods, both theory- and model-based				X
10	Show ability to use economic concepts to discuss current economic issues					X
11	Reason logically and work analytically					X
12	Show awareness on social aspects of the economics in different applied and theoretical fields			X
13	Identify appropriate economic models to analyse problems			X
16	Show understanding of basic statistical and econometric concepts and ability to apply basic concepts to own empirical work	X
17	Demonstrate a sound knowledge of the current economic issues in Turkey and a general knowledge of the issues in the world economy		X

ECTS

Activities	Number	Period	Total Workload
Class Hours	14	3	42
Working Hours out of Class	2	5	10
Midterm Examinations (including preparation)	1	10	10
Final Examinations (including preparation)	1	15	15
Quiz	1	10	10
Total Workload			87
Total Workload / 25			3.48
Credits ECTS			3