THE UNIVERSITY OF THE WEST INDIES
DEPARTMENT OF ECONOMICS
Monetary Economics Dr. Edward E. Ghartey
EC 30M Office: Room 11
Fall Semester, 2007 Office Hrs.: TWF 2:00-3:00P.M. and By Appointments
COURSE DESCRIPTION
This course is designed to cover basic materials in modern monetary theory: demand for and supply of money and credit, interest rate theory, and inflation. The conduct of monetary policy, and its effect on economic activity and the price level will also be discussed.
The midterm examination is comprehensive. Students will be notified and due date.
DISTRIBUTION OF GRADES
Mid-term examination 30%
Final examination 70%
Students are advised to consult the UWI\'s Faculty of Social Sciences\' academic year 2006/07 Handbook for the rules and regulations governing the class.
Main Textbook
Mishkin, F.S. (2007), The Economics of Money, Banking, and Financial Markets, (
New York
: Pearson Addison Wesley Publishers).
Other Relevant Readings
Ritter, L.S. and W.L. Silber (1991), Principles of Money, Banking and Financial Markets, (New York: Basic Books, Inc. Publishers).
Jaffee, D.M. (1989), Money, Banking and Credit, (New York: Worth Publisher, Inc.).
Symposia, The Monetary Transmission Mechanism, The Journal of Economic Perspectives, 9 (4), Fall 1995, 3-95.
COURSE OUTLINE
Part I: INTRODUCTION
Chapter 3: What is money? pp. 49-63.
Part IV: Central banking and the conduct of monetary policy.
Chapter 13: Multiple deposit creation: Introducing the money supply process. pp. 333-349.
Chapter 14: Determinants of the money supply. pp. 351-372.
Chapter 15: The tools of monetary policy. pp. 373-391.
Chapter 18: What should the central bank do? Monetary policy goals, strategy and tactics. pp. 393-419.
Part VI: Monetary Theory
Chapter 19: The demand for money. pp. 493-512.
Chapter 20: The ISLM Model. pp. 513-537.
Chapter 21: Monetary and Fiscal Policy in the ISLM Model. pp. 539-560.
Chapter 22: Aggregate Demand and Supply Analysis. pp. 561-582.
Chapter 23: Transmission mechanism. pp. 583-611.
Chapter 24: Money and inflation. pp. 613-637.
Chapter 25: Rational expectations: Implications for policy. pp. 639-660.
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Additional Readings will be provided in clas 
