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ECO343Social Sciences3 Unitsintermediate

Monetary Theory and Policy

This course provides an in-depth exploration of monetary theory and policy, covering fundamental concepts, instruments, and their application in economic management. It examines the quantity theory of money, Keynesian approaches, and the dynamics of money supply and demand. Students will analyze monetary strategies, their effectiveness, and limitations, particularly in developing economies like Nigeria. The course aims to equip students with a comprehensive understanding of monetary economics and its impact on economic stability and growth.

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208h

Study Time

13

Weeks

16h

Per Week

basic

Math Level

Course Keywords

Monetary PolicyMoney SupplyInflationInterest RatesEconomic Growth

Course Overview

Everything you need to know about this course

Course Difficulty

Intermediate Level

Builds on foundational knowledge

65%

intermediate

➕

Math Level

Basic Math

📖

Learning Type

Theoretical Focus

Course Topics

Key areas covered in this course

1

Monetary Policy Objectives

2

Monetary Policy Instruments

3

Quantity Theory of Money

4

Keynesian Economics

5

Money Supply and Demand

6

High-Powered Money

7

Money Multiplier

Total Topics7 topics

Ready to Start

No specific requirements needed

This course is designed to be accessible to all students. You can start immediately without any prior knowledge or specific preparation.

Assessment Methods

How your progress will be evaluated (3 methods)

assignments

Comprehensive evaluation of course material understanding

Written Assessment

tutor-marked assignments

Comprehensive evaluation of course material understanding

Written Assessment

final examination

Comprehensive evaluation of course material understanding

Written Assessment

Career Opportunities

Explore the career paths this course opens up for you

Economist

Apply your skills in this growing field

Financial Analyst

Apply your skills in this growing field

Policy Advisor

Apply your skills in this growing field

Banking Officer

Apply your skills in this growing field

Investment Manager

Apply your skills in this growing field

Industry Applications

Real-world sectors where you can apply your knowledge

Central BankingCommercial BankingInvestment BankingGovernment Economic PlanningFinancial Consulting

Study Schedule Beta

A structured 13-week journey through the course content

Week

1

Module 1: Analysis of Monetary Policy

5h

Unit 1: Meaning of Monetary Policy

3 study hours

•Define monetary policy and its goals.
•Discuss the objectives of monetary policy: full employment, price stability, economic growth, and balance of payments equilibrium.
•Understand the relationship between these objectives.

Unit 2: Trade-off in Monetary Goals

2 study hours

•Analyze the trade-offs between monetary goals.
•Examine conflicts between full employment and low inflation, economic growth and stable prices, and other policy objectives.

Week

2

Module 1: Analysis of Monetary Policy

5h

Unit 3: Targets of Monetary Policy

3 study hours

•Define and understand the targets of monetary policy, including money supply, credit availability, and interest rates.
•Discuss the meaning of market yield on equity.
•Identify and analyze the basic indicators of monetary policy.

Unit 4: Strategies and Effectiveness of Monetary Policy Implementation in Nigeria

2 study hours

•Examine monetary strategies in Nigeria.
•Evaluate the effectiveness of monetary policy implementation in Nigeria.
•Understand the overview and framework for monetary policy in Nigeria.

Week

3

Module 2: Monetary Policy: Instruments and Types

5h

Unit 1: Instruments of Monetary Policy

3 study hours

•Identify and describe the instruments of monetary policy, including bank rate, open market operations, and reserve requirements.
•Understand the role of these instruments in controlling money supply and credit.

Unit 2: Expansionary Monetary Policy Vs Restrictive Monetary Policy

2 study hours

•Differentiate between expansionary and restrictive monetary policies.
•Analyze the effects of each policy on economic variables such as inflation, employment, and output.

Week

4

Module 2: Monetary Policy: Instruments and Types

5h

Unit 3: Lag in Monetary Policy

3 study hours

•Understand the concept of lag in monetary policy.
•Discuss the types of lags and their implications for policy effectiveness.

Unit 4: Role of Monetary Policy in a Developing Economy

2 study hours

•Examine the role of monetary policy in a developing economy.
•Discuss the specific challenges and opportunities for monetary policy in less developed countries.

Week

5

Module 3: Changes in the Value of Money: The Quantity Theory of Money and Its Variants

3h

Unit 1: Value Of Money

3 study hours

•Define and understand the meaning of value of money.
•Discuss the concepts of internal and external value of money.

Week

6

Module 3: Changes in the Value of Money: The Quantity Theory of Money and Its Variants

4h

Unit 2: The Cambridge Equations: The Cash Balance Approach

4 study hours

•Explain the Cambridge equations and the cash balance approach to the quantity theory of money.
•Compare and contrast the Cambridge approach with Fisher's transaction approach.

Week

7

Module 3: Changes in the Value of Money: The Quantity Theory of Money and Its Variants

4h

Unit 3: The Keynesian Theory of Money and Price

4 study hours

•Understand Keynes' reformulation of the quantity theory of money.
•Discuss the superiority of the Keynesian theory over the traditional quantity theory of money.

Week

8

Module 3: Changes in the Value of Money: The Quantity Theory of Money and Its Variants

4h

Unit 4: Friedman's Restatement of Quantity Theory of Money and Supply of Money

4 study hours

•Examine Friedman's restatement of the quantity theory of money.
•Discuss the key differences between Friedman's and Keynes' theories of money demand.

Week

9

Module 4: Supply and Demand for Money

3h

Unit 1: Money Supply

3 study hours

•Define and understand the concepts and measures of money supply.
•Know the important facts about measures of money supply.

Week

10

Module 4: Supply and Demand for Money

4h

Unit 2: Determinants of Money Supply

4 study hours

•Identify and analyze the determinants of money supply, including high-powered money and the money multiplier.
•Understand the factors influencing the money multiplier.

Week

11

Module 4: Supply and Demand for Money

4h

Unit 3: Supply of Money and High-Powered Money

4 study hours

•Differentiate between the supply of money and high-powered money.
•Analyze the relationship between these concepts and their impact on the economy.

Week

12

Module 4: Supply and Demand for Money

4h

Unit 4: High Powered Money and Money Multiplier

4 study hours

•Understand the concept of high-powered money and the money multiplier.
•Discuss the factors that influence the size of the money multiplier.

Week

13

Module 4: Supply and Demand for Money

4h

Unit 5: Demand for Money

4 study hours

•Analyze the classical and Keynesian approaches to the demand for money.
•Understand the motives for holding money, including transactions, precautionary, and speculative motives.

This study schedule is in beta and may not be accurate. Please use it as a guide and consult the course outline for the most accurate information.

Course PDF Material

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Study Tips & Exam Preparation

Expert tips to help you succeed in this course

1

Review all key definitions and concepts from each unit, creating flashcards for quick recall.

2

Practice solving numerical problems related to money supply, money multiplier, and interest rate calculations.

3

Create concept maps linking the quantity theory of money, Keynesian theory, and Friedman's theory.

4

Focus on understanding the trade-offs between different monetary policy objectives.

5

Analyze case studies of monetary policy implementation in Nigeria and other developing economies.

6

Practice essay questions comparing and contrasting different approaches to monetary economics.

7

Allocate study time proportionally to the weight of each module in the final examination.

8

Review all Tutor-Marked Assignments (TMAs) and incorporate feedback into your study notes.

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