BAHÇEŞEHİR UNIVERSITY BİLGİ PAKETİ / DERS KATALOĞU
| ECONOMICS AND FINANCE | |||||
| Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 | ||
Course Introduction and Application Information
| Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
| ECO3731 | Monetary Theory and Policy | Fall | 3 | 0 | 3 | 6 |
Basic information
| Language of instruction: | English |
| Type of course: | Must Course |
| Course Level: | Bachelor’s Degree (First Cycle) |
| Mode of Delivery: | Hybrid |
| Course Coordinator : | Dr. Öğr. Üyesi AYSE ERTUĞRUL BAYKAN |
| Course Lecturer(s): |
Dr. Öğr. Üyesi AYSE ERTUĞRUL BAYKAN |
| Recommended Optional Program Components: | None. |
| Course Objectives: | The objective of this course is to give the students the understanding and the intuition about the explanatory notions and the monetary policy design. |
Learning Outcomes
|
The students who have succeeded in this course; 1. Interpret changes in global and national economy 2. Acquire a solid understanding of the essentials of financial instruments 3. Understand the role that central banks play in macroeconomic policy making 4. Learn the impact of the exchange rate changes on macroeconomic dynamics 5. Interpret the effects of a change in policy interest rate of central bank 6. Know the short-run and long-run objectives of central bank 7. Accumulate detailed knowledge about banking system 8. Comprehend the interaction between monetary policy making and financial markets 9. Discern the relation of international financial institutions with national regulatory agencies |
Course Content
| By taking into consideration the necessities for an integrated global perspective and financial dimension of monetary policy actions, the course is designed in two parts. In the former, the basic concepts of finance such as the time value of money, interest rate setting in bond markets, risk and the presentation of financial sphere are provided. In the latter, the linkage of the financial concepts to the monetary policy making is explained. In particular, the central bank balance sheet, the monetary toolbox of central banks, the corridor system, Taylor rule, unconventional monetary policies and their effect on financial investors’ decisions are detailed. |
Weekly Detailed Course Contents
| Week | Subject | Related Preparation |
| 1) | Central bank balance sheet and money supply | |
| 1) | General Introduction | |
| 2) | Money, Payment System and Components of the Financial System Definition of money and its functions | |
| 3) | Financial Instruments, Financial Markets, and Financial Institutions | |
| 4) | Fiyatlama: Gelecek değer ve şimdiki değer | |
| 5) | Interest Rates, Bonds, Bond Prices, Determination of Interest rates | |
| 6) | Risk and quantifying risk | |
| 7) | Term structure of Interest Rates | |
| 8) | Foreign Exchange | |
| 9) | Banking and bank management | |
| 10) | Central bank balance sheet | |
| 11) | Central bank balance sheet and money supply | |
| 12) | Monetary Policy : Monetary Policy Tools | |
| 13) | Monetary policy tools: unconventional tools | |
| 14) | Monetary policy rules and Taylor rule |
Sources
| Course Notes / Textbooks: | Cecchetti, S.G., (2017), “Money, Banking and Financial Markets”, McGraw -Hill, Global Edition |
| References: | Özatay, Fatih , (2011) “Parasal Iktisat Kuram ve Politika”, Efil Yayınları, Second Edition, in Turkish |
Evaluation System
| Semester Requirements | Number of Activities | Level of Contribution |
| Homework Assignments | 5 | % 25 |
| Midterms | 1 | % 30 |
| Final | 1 | % 45 |
| Total | % 100 | |
| PERCENTAGE OF SEMESTER WORK | % 55 | |
| PERCENTAGE OF FINAL WORK | % 45 | |
| Total | % 100 | |
ECTS / Workload Table
| Activities | Number of Activities | Duration (Hours) | Workload |
| Course Hours | 3 | 16 | 48 |
| Study Hours Out of Class | 13 | 5 | 65 |
| Midterms | 1 | 9 | 9 |
| Final | 1 | 18 | 18 |
| Total Workload | 140 | ||
Contribution of Learning Outcomes to Programme Outcomes
| No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
| Program Outcomes | Level of Contribution | |
| 1) | Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works. | 5 |
| 2) | Understand the common as well as distinctive characters of the markets, industries, market regulations and policies. | 4 |
| 3) | Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events. | 4 |
| 4) | Analyze the interventions of politics to the economics and vice versa. | 5 |
| 5) | Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches. | 4 |
| 6) | Understand current and new economic events and how the new approaches to the economics are formed and evaluating. | 4 |
| 7) | Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form. | 5 |
| 8) | Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence. | 4 |
| 9) | Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments. | 3 |
| 10) | Understand the information and changes related to the economy by using a foreign language and communicate with colleagues. | 5 |