This module is designed as an introduction to the field of Monetary Economics. The first part (weeks 1-5) will provide an overview of the literature on monetary aspects of the business cycle, with a special emphasis on optimizing sticky price models and their implications for monetary policy. We will cover both the main theoretical models and relevant empirical evidence. The second part (weeks 6-10) will focus on theoretical and empirical questions regarding the monetary transmission mechanism, the implementation of monetary policy and its interaction with financial markets.

Upon successful completion of this module, students will understand variations of the basic New Keynesian model and apply it to study monetary aspects of the business cycle and pertinent policy implications. They will also become acquainted with the relevant methodology used in applied theoretical and empirical research in the field and be able to critically assess its limitations.

Feedback in this module will be provided based on your Coursework performance. The Coursework consists of a take-home assignment. In addition, bi-weekly problem sets and classes provide feedback on student performance; these are not graded. There will be also online solutions to problem sets for student to discuss on their own and learn from them. Finally, the grade in the two-hour final exam will give ultimate feedback on performance in this module.

Key employability skills delivered by the module include numeracy and ICT skills; research, information and communication skills; self-awareness, target setting, time management; reflection and evaluation. The key academic skills delivered by the module are detailed in the Key Skills table