GECO6470

Money and Banking

10 Units

This course aims to familiarise students from different academic backgrounds and majors with the basic concepts, theories and principles that explain the evolution of money and banking. The main topics covered in this course are the operations of modern banking and financial institutions under different market structures and degrees of openness, the functions and operations of modern central banks, and the conduct of monetary policy by the central bank and international banking (for example, the Eurocurrency market). Case studies will investigate the conduct of central banking in a range of countries from the Pacific Rim and Indian Ocean Rim.

Faculty Faculty of Business and Law
School Newcastle Business School
Availability

Not currently offered

Previously offered in 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005, 2004

Learning Outcomes

1.For students to become familiar with the basic concepts, theories and principles that explain the function and evolution of money and banking. 2.Develop an insight into the properties and role of money and other financial assets within a modern monetary economy, with particular reference to Australia. 3.Acquire an understanding of how the operations of modern banking and financial institutions, particularly those of Australia, developed and are affected by different market structures, regulatory r¿gimes and degrees of international openness. 4.To understand the functions and operations of modern central banks, and of the main financial institutions and markets comprising the Australian financial system, with emphasis on banking, share markets and government budget financing. 5.To be able to critically evaluate the way that central banks conduct monetary policy with reference to the Asia-Pacific, and particularly the Australian, policy settings. 6.To understand the role of the Bank of International Settlements, the way in which international banking and international financial markets operate, and interrelationships among theory, policy and events across national economies.

Content

Monetary Institutions - Why study money, banking and financial markets? - Functions and forms of money.

  • Origins of banking.

  • The evolution and future of money.

  • Economic behaviour of depository institutions.

  • Depositary institutions and the money supply process. Financial Institutions

  • Understanding interest rates.

  • Portfolio choice: theory of asset demand.

  • The behaviour of interest rates.

  • Functions and features of Non-depository Financial Institutions

  • Market behaviour of Financial Institutions Monetary Policy
  • Fundamental forces in the regulation and deregulation of banking.

  • Principles of regulation of depositary and non-depository institutions.

  • Economic analysis of banking regulation.

  • Central banking and monetary policy.

  • The role of international financial institutions like the Bank of international Settlements, the World Bank, the Asian Development Bank, and the International Monetary Fund.

Transition There are no transition arrangements relevant
Assumed Knowledge No assumed knowledge
Assessment Items
  • Examination: Class - Quiz
  • Essays / Written Assignments -
  • Examination: Formal -
  • Projects - Major Group Project
Contact Hours
  • Lecture: for 3 hour(s) per Week for Full Term
Timetable 2015 Course Timetables for GECO6470

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