Department of Mathematics

ECON 304 | Course Introduction and Application Information

Course Name

Monetary Theory and Policy

Code	Semester	Theory (hour/week)	Application/Lab (hour/week)	Local Credits	ECTS
ECON 304	Fall/Spring	3	0	3	4

Prerequisites	None
Course Language	English
Course Type	Elective
Course Level	First Cycle
Mode of Delivery	-
Teaching Methods and Techniques of the Course	-
National Occupation Classification	-
Course Coordinator	-
Course Lecturer(s)	Prof. Dr. Oğuz ESEN
Assistant(s)	Araş. Gör. Samet ŞİMŞEK Araş. Gör. Derya Barış ŞEN

Course Objectives

To acquaint the students with money basics, monetary policies, inflation, interest, exchange rates theories and practices

Learning Outcomes

#	Content	PC Sub	* Contribution Level
#	Content	PC Sub	1	2	3	4	5
1	Will be able to explain monetary theories, policies, and money per se.
2	Will be able to discuss the monetary reasons of economic crises.
3	Will be able to analyze the relationship of Turkey with the International Monetary Fund (IMF).
4	Will be able to explain the functioning of the Central Bank and its conduct of monetary policy.
5	Will be able to discuss the reasons of inflation and its impact on the economy.
6	Will be able to analyze issues related to monetary unions, especially the Eurozone.

Course Description

This course will explore the theoretical and empirical analysis of the effect of money on economy. The effect of money, credit and liquidity on income, employment, economic growth and inflation will be analyzed. The goals of monetary policy, the methods used to obtain these goals, and the effects of these methods will be discussed. Moreover, issues such as the functioning of monetary policy in international financial system; the relationship of the financial system with the real economy, monetary policy channels (money, bank credit, and balance sheet channels), and reasons and outcomes of inflation will be undertaken.

Course Category	Core Courses
	Major Area Courses
	Supportive Courses	X
	Media and Management Skills Courses
	Transferable Skill Courses

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week	Subjects	Related Preparation	Learning Outcome
1	What Is Money?	Chapter 3 in Mishkin
2	Central banks	Chapter 14 in Mishkin
3	Money supply process	Chapter 15 in Mishkin
4	Tools of Monetary Policy	Chapter 16 in Mishkin
5	The Conduct of Monetary Policy: Strategy and Tactics	Chapter 17 in Mishkin
6	The Foreign Exchange Market	Chapter 18 in Mishkin
7	The International Financial System	Chapter 19 in Mishkin
8	Quantity Theory, Inflation, and the Demand for Money	Chapter 20 in Mishkin
9	The IS-MP Model and Philips Curve	Chapter 21 in Mishkin
10	The Monetary Policy and Aggregate Demand Curves	Chapter 22 in Mishkin
11	Aggregate Demand and Supply Analysis	Chapter 23 in Mishkin
12	Monetary Policy Theory	Chapter 24 in Mishkin
13	The Role of Expectations in Monetary Policy	Chapter 25 in Mishkin
14	Transmission Mechanisms of Monetary Policy	Chapter 26 in Mishkin
15	Review of the Semester
16	Review of the Semester

Course Notes/Textbooks

The Economics of Money, Banking, and Financial Markets (12th Edition) by Frederic S. Mishkin

Suggested Readings/Materials

EVALUATION SYSTEM

Semester Activities	Number	Weighting	LO 1	LO 2	LO 3	LO 4	LO 5	LO 6
Participation	15	10
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments	1	20
Presentation / Jury
Project
Seminar / Workshop
Oral Exams
Midterm	1	30
Final Exam	1	40
Total

Weighting of Semester Activities on the Final Grade	17	60
Weighting of End-of-Semester Activities on the Final Grade	1	40
Total

ECTS / WORKLOAD TABLE

Semester Activities	Number	Duration (Hours)	Workload
Theoretical Course Hours (Including exam week: 16 x total hours)	16	3	48
Laboratory / Application Hours (Including exam week: '.16.' x total hours)	16		0
Study Hours Out of Class	16	2	32
Field Work			0
Quizzes / Studio Critiques			0
Portfolio			0
Homework / Assignments	1	10	10
Presentation / Jury			0
Project			0
Seminar / Workshop			0
Oral Exam			0
Midterms	1	10	10
Final Exam	1	20	20
		Total	120

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#	PC Sub	Program Competencies/Outcomes	* Contribution Level
#	PC Sub	Program Competencies/Outcomes	1	2	3	4	5
1	To be able to have a grasp of basic mathematics, applied mathematics or theories and applications of statistics.		-	-	-	-	-
2	To be able to use advanced theoretical and applied knowledge, interpret and evaluate data, define and analyze problems, develop solutions based on research and proofs by using acquired advanced knowledge and skills within the fields of mathematics or statistics.		-	-	-	-	-
3	To be able to apply mathematics or statistics in real life phenomena with interdisciplinary approach and discover their potentials.		-	-	-	-	-
4	To be able to evaluate the knowledge and skills acquired at an advanced level in the field with a critical approach and develop positive attitude towards lifelong learning.		-	-	-	-	X
5	To be able to share the ideas and solution proposals to problems on issues in the field with professionals, non-professionals.		-	-	-	-	X
6	To be able to take responsibility both as a team member or individual in order to solve unexpected complex problems faced within the implementations in the field, planning and managing activities towards the development of subordinates in the framework of a project.		-	-	-	-	-
7	To be able to use informatics and communication technologies with at least a minimum level of European Computer Driving License Advanced Level software knowledge.		-	-	-	-	-
8	To be able to act in accordance with social, scientific, cultural and ethical values on the stages of gathering, implementation and release of the results of data related to the field.		-	-	-	-	-
9	To be able to possess sufficient consciousness about the issues of universality of social rights, social justice, quality, cultural values and also environmental protection, worker's health and security.		-	-	-	-	-
10	To be able to connect concrete events and transfer solutions, collect data, analyze and interpret results using scientific methods and having a way of abstract thinking.		-	-	-	-	-
11	To be able to collect data in the areas of Mathematics or Statistics and communicate with colleagues in a foreign language.		-	-	-	-	-
12	To be able to speak a second foreign language at a medium level of fluency efficiently.		-	-	-	-	-
13	To be able to relate the knowledge accumulated throughout the human history to their field of expertise.		-	-	-	-	-