The objective of the course is to provide students with a framework to understand the operations of the major monetary and financial systems and their general equilibrium effects on an aggregate economy. The course encourages students to understand the macroeconomic effects of financial frictions. In particular, to understand causes of financial crises, students will see various factors in financial markets that significantly affect real economic activities. The course will develop student abilities to critically evaluate and formulate economics policies by applying empirical evidence and relevant theoretical models regarding monetary and financial systems.

Coursework: 50%

Examination: 50%

Examination Duration: 3 hours