Monetary Theory and Policy (ECON303) Course Detail

Course Name Course Code Season Lecture Hours Application Hours Lab Hours Credit ECTS
Monetary Theory and Policy ECON303 5. Semester 3 0 0 3 6
Pre-requisite Course(s)
Course Language English
Course Type Compulsory Departmental Courses
Course Level Bachelor’s Degree (First Cycle)
Mode of Delivery Face To Face
Learning and Teaching Strategies Lecture, Demonstration.
Course Coordinator
Course Lecturer(s)
  • Instructor Dr. Esra Şenalp
Course Assistants
Course Objectives This course focuses on the study of money, financial markets and the conduct of monetary policy.
Course Learning Outcomes The students who succeeded in this course;
  • Gain a basic understanding of financial systems, how they operate and why they play a central role in the economy
  • Learn the aims, conduct, influence and limitations of monetary policy.
  • Learn to critically assess the various viewpoints on the conduct monetary policy
  • Gain experience in understanding, using and applying economic models
Course Content Money and credit, behaviour and structure of interest rates, financial systems, money demand and supply, analysis of competing monetary theories and the use of monetary policy tools in economic stabilization; current issues in monetary theory and policy, inflation targeting.

Weekly Subjects and Releated Preparation Studies

Week Subjects Preparation
1 Why Study Money, Banking, and Financial Markets? An Overview of the Financial System Mishkin, Chapters 1-2.
2 What is Money? Understanding Interest Rates Mishkin, Chapters 3-4.
3 The Behavior of Interest Rates; The Risk and Term Structure of Interest Rates Mishkin, Chapters 5-6.
4 An Economic Analysis of Financial Structure; Banking and the Management of Financial Institutions Mishkin, Chapters 8-9.
5 Banking Industry: Structure and Competition; Economic Analysis of Banking Regulation Mishkin, Chapters 10-11.
6 Structure of Central Banks and the Federal Reserve System; Multiple Deposit Creation and the Money Supply Process Mishkin, Chapters 12-13
7 Mid-term Exam
8 Determinants of the Money Supply; Tools of Monetary Policy; What Should Central Banks Do? Monetary Policy Goals, Strategy and Tactics Mishkin, Chapters 14-15-16
9 The Foreign Exchange Market; The International Financial System Mishkin, Chapters 17-18
10 The Demand for Money; The ISLM Model Mishkin, Chapters 19-20
11 Monetary and Fiscal Policy in the ISLM Model Mishkin, Chapters 21
12 Aggregate Demand and Supply Analysis Mishkin, Chapters 22
13 Transmission Mechanisms of Monetary Policy: The Evidence Mishkin, Chapters 23
14 Money and Inflation Mishkin, Chapters 24
15 General Review
16 Final Exam


Course Book 1. Mishkin, Frederic S. (2007) The Economics of Money, Banking and Financial Markets, 8th International Edition, Boston: Addison-Wesley.
Other Sources 2. Aren, Sadun (2007) 100 Soruda Para ve Para Politikası, İmge Kitabevi.

Evaluation System

Requirements Number Percentage of Grade
Attendance/Participation 1 10
Laboratory - -
Application - -
Field Work - -
Special Course Internship - -
Quizzes/Studio Critics - -
Homework Assignments 2 10
Presentation - -
Project - -
Report - -
Seminar - -
Midterms Exams/Midterms Jury 1 30
Final Exam/Final Jury 1 50
Toplam 5 100
Percentage of Semester Work 50
Percentage of Final Work 50
Total 100

Course Category

Core Courses X
Major Area Courses
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

The Relation Between Course Learning Competencies and Program Qualifications

# Program Qualifications / Competencies Level of Contribution
1 2 3 4 5
1 Acquiring the skills of understanding, explaining, and using the fundamental concepts and methods of economics X
2 Acquiring the skills of macro level economic analysis X
3 Acquiring the skills of micro level economic analysis X
4 Understanding the formulation and implementation of economic policies at the local, national, regional, and/or global level X
5 Learning different approaches on economic and related issues X
6 Acquiring the quantitative and/or qualitative techniques in economic analysis X
7 Improving the ability to use the modern software, hardware and/or technological devices X
8 Developing intra-disciplinary and inter-disciplinary team work skills X
9 Acquiring an open-minded behavior through encouraging critical analysis, discussions, and/or life-long learning X
10 Adopting work ethic and social responsibility X
11 Developing the skills of communication. X
12 Improving the ability to effectively implement the knowledge and skills in at least one of the following areas: economic policy, public policy, international economic relations, industrial relations, monetary and financial affairs. X

ECTS/Workload Table

Activities Number Duration (Hours) Total Workload
Course Hours (Including Exam Week: 16 x Total Hours) 16 3 48
Special Course Internship
Field Work
Study Hours Out of Class 16 6 96
Presentation/Seminar Prepration
Homework Assignments 2 5 10
Quizzes/Studio Critics
Prepration of Midterm Exams/Midterm Jury 1 2 2
Prepration of Final Exams/Final Jury 1 2 2
Total Workload 158