EC 430 - Monetary Economics

(3.00 cr.)

Prerequisite: EC 103 . Recommended Prerequisite: EC 301 . Examines micro- and macroeconomic monetary issues, problems, and theory. Students learn to predict the effect of monetary events on financial markets and the real economy. Topics include functions and measures of money; interest rates, present value, and yield; capital asset pricing model; diversification; risk and term structure of interest rates; financial intermediaries; creation and determination of the money supply; the Federal Reserve System; tools, goals, and targets of monetary policy; demand for money; money and real GDP; transmissions mechanisms.