Monetary Policy (GRAE012) | ISM

Monetary Policy (GRAE012)

Objective of the course

This course aims to encourage both theoretical inquiry and practical questioning and understanding.  Emphasis is placed on interpreting theoretical models of how monetary policy is formulated and implemented and placing those models in the context of real-world economic systems and practical policy-making. In addition to learning from lectures and reading, students will learn how to use a simple method to diagram monetary theories and how to use simulation models to deepen understanding of the macroeconomic dynamics of monetary policy.  The students will also gain practical experience in team-structured research and organizing and delivering professional presentations.

Learning outcomes

  • Compare monetary policy goals & instruments in the context of monetary theories.
  • Predict monetary policy responses to changing economic conditions.
  • Describe monetary policy transmission channels in the context of monetary theories.
  • Identify constraints on monetary policy options, decision-making, and effectiveness.
  • Compare monetary policy regimes.
  • Translate monetary policy theories into causal links & feedback loops, and compare.
  • Use simulation models of monetary policy processes & interpret simulation results.
  • Deliver a professional presentation on a monetary policy research topic.