TÜRKÇE
ENGLISH
Information
| Code | IKS406 |
| Name | Central Banking and Monetary Policy |
| Term | 2024-2025 Academic Year |
| Semester | 8. Semester |
| Duration (T+A) | 3-0 (T-A) (17 Week) |
| ECTS | 6 ECTS |
| National Credit | 3 National Credit |
| Teaching Language | Türkçe |
| Level | Lisans Dersi |
| Type | Normal |
| Label | E Elective |
| Mode of study | Yüz Yüze Öğretim |
| Catalog Information Coordinator | Doç. Dr. ERHAN İŞCAN |
| Course Instructor |
1 |
Course Goal / Objective
This course aims to examine the functions of central banks, the tools of monetary policy, and their role in maintaining economic stability. It will analyze how central banks use tools such as interest rates, inflation targeting, and open market operations to influence the economy. Additionally, topics such as the relationship between monetary and fiscal policy, central bank independence, financial crises, and the global impact of monetary policy applications will be covered. Students will gain the necessary knowledge and skills to understand the effects of central banking and monetary policy strategies on macroeconomic equilibrium and assess current developments.
Course Content
Introduction to central banking, the functions and roles of central banks, money supply and money demand, interest rates and monetary policy tools, inflation targeting and monetary policy strategies, open market operations and discount rates, the relationship between monetary policy and fiscal policy, central bank independence and its role in economic management, financial crises and crisis management, global monetary policy practices, central bank balance sheets and the effects of monetary policy, liquidity traps and limitations of monetary policy, digital currencies and central bank digital currencies, monetary policy and economic growth, the relationship between inflation and unemployment, decisions of central banks during crises.
Course Precondition
There are no prerequisites.
Resources
Mishkin, F. S. (2012). The Economics of Money, Banking and Financial Markets (The Pearson Series in Economics).
Notes
Hartmann, P., & Smets, F. (2018). The first twenty years of the European Central Bank: monetary policy.
Course Learning Outcomes
| Order | Course Learning Outcomes |
|---|---|
| LO01 | Explains the basic duties of central banks, such as controlling the money supply, ensuring financial stability, and supervising payment systems. |
| LO02 | Explains the basic duties of central banks, such as controlling the money supply, ensuring financial stability, and supervising payment systems. |
| LO03 | Explains the effects of monetary policy on macroeconomic variables such as inflation, unemployment and growth. |
| LO04 | Explains the importance of independence of central banks and the need for transparency and accountability of monetary policy decisions. |
| LO05 | Explain the basic principles of the inflation targeting strategy and compare various monetary policy regimes. |
| LO06 | Explains the causes of global and local financial crises and the methods of central banks to intervene in these crises. |
| LO07 | Explains the influence of international central banks, such as the Federal Reserve and the European Central Bank, on global financial markets. |
| LO08 | Explains the effects of factors such as foreign trade, exchange rates and capital movements on monetary policy. |
Relation with Program Learning Outcome
| Order | Type | Program Learning Outcomes | Level |
|---|---|---|---|
| PLO01 | Bilgi - Kuramsal, Olgusal | Explains basic conceptual information about economy and finance | |
| PLO02 | Bilgi - Kuramsal, Olgusal | The departments of finance, law, economics, public administration, business administration and accounting have the necessary qualifications for the public and private sectors. | |
| PLO03 | Beceriler - Bilişsel, Uygulamalı | Analyses the basic conceptual knowledge about economics and finance in the context of current economic and financial developments. | 5 |
| PLO04 | Beceriler - Bilişsel, Uygulamalı | Synthesises the information obtained from different sources within the framework of academic rules in the field of research | 5 |
| PLO05 | Yetkinlikler - Bağımsız Çalışabilme ve Sorumluluk Alabilme Yetkinliği | Works effectively individually and/or in a team. | 5 |
| PLO06 | Yetkinlikler - Öğrenme Yetkinliği | Being aware of the necessity of lifelong learning, follows the current developments in the field. | |
| PLO07 | Yetkinlikler - Öğrenme Yetkinliği | Apart from the traditional approach, it develops new working methods when deemed necessary. | |
| PLO08 | Yetkinlikler - İletişim ve Sosyal Yetkinlik | Turkish and at least one foreign language is used in accordance with the needs of academic life and business life | |
| PLO09 | Yetkinlikler - İletişim ve Sosyal Yetkinlik | Expresses herself orally and in writing | |
| PLO10 | Yetkinlikler - Alana Özgü Yetkinlik | To be able to collect and analyse data from different sources by using contemporary communication tools, methods and processes | 5 |
| PLO11 | Yetkinlikler - Alana Özgü Yetkinlik | Having basic computer knowledge and skills, uses this information in the professional field. | 5 |
| PLO12 | Yetkinlikler - Alana Özgü Yetkinlik | Explains the duties, authority and functioning of public financial institutions | |
| PLO13 | Yetkinlikler - Alana Özgü Yetkinlik | Explains job descriptions and responsibilities of professionals in the field of finance | |
| PLO14 | Yetkinlikler - Alana Özgü Yetkinlik | Have social, scientific and ethical values. |
Week Plan
| Week | Topic | Preparation | Methods |
|---|---|---|---|
| 1 | Introduction and Basics of Central Banking | Reading the Related Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 2 | Money Supply and Money Demand | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 3 | Interest Rates and Monetary Policy Tools | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 4 | Inflation Targeting and Monetary Policy Strategies | Reading the Related Book Chapter Readings | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 5 | Open Market Operations and Discount Rates | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 6 | The Relationship Between Monetary Policy and Fiscal Policy | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 7 | Central Bank Independence and Its Role | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 8 | Midterm exam | Reading the Related Book Chapters | Ölçme Yöntemleri: Yazılı Sınav |
| 9 | European Central Bank and Federal Reserve Independence Concept | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 10 | Financial Crises and Crisis Management | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 11 | Central Bank Balance Sheets and Monetary Policy Effects | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 12 | Global Monetary Policy and Applications | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 13 | Liquidity Traps and Limitations of Monetary Policy | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 14 | Digital Currencies and Central Bank Digital Currencies (CBDC) | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 15 | Decisions Made by Central Banks During Crises | Reading the Related Book Chapter | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 16 | Final exam | Reading the Related Book Chapters | Ölçme Yöntemleri: Yazılı Sınav |
| 17 | Final exam-2 | prepare to exam | Ölçme Yöntemleri: Yazılı Sınav |
Student Workload - ECTS
| Works | Number | Time (Hour) | Workload (Hour) |
|---|---|---|---|
| Course Related Works | |||
| Class Time (Exam weeks are excluded) | 14 | 3 | 42 |
| Out of Class Study (Preliminary Work, Practice) | 14 | 5 | 70 |
| Assesment Related Works | |||
| Homeworks, Projects, Others | 0 | 0 | 0 |
| Mid-term Exams (Written, Oral, etc.) | 1 | 15 | 15 |
| Final Exam | 1 | 30 | 30 |
| Total Workload (Hour) | 157 | ||
| Total Workload / 25 (h) | 6,28 | ||
| ECTS | 6 ECTS | ||