Money and Banking

Course code ECON3004Units 10Level 3000Faculty of Business and LawNewcastle Business School

This course introduces students to the basic concepts and the principles of money, credit and banking, including central banking and monetary policy, with focus on countries of the Asia-Pacific geographical entity. Theoretical, operational, regulatory and policy aspects of banking/financial systems, and their vulnerabilities to shocks both domestic and external, are discussed using contemporary examples. An introductory analysis will be given of the role and function in the world economic portfolio of the fast-growing Islamic banking and finance industry since its modern emergence in the 1990s.

The course design is optimised for student attendance at all lectures and tutorials. Course materials are analytical, policy-oriented and therefore challenging. The lecture programme provides a logical structure for the topics under discussion, emphasises key concepts, relations and models, and reports empirical evidence and events from across the globe to draw broad policy implications. The tutorial programme reviews key concepts and models and analyses the key issues using applied examples. Tutorials also provide opportunities for students to raise their own questions to explore points that are not clear.

Available in 2014

Callaghan CampusSemester 2
Previously offered in 2013, 2012, 2011, 2010
ObjectivesOn successful completion of this course, students will be able to:
1. Identify the principles behind the workings of the financial system;
2. Demonstrate knowledge about the evolution of financial markets and various credit instruments; and the evolution of money and its functions;
3. Analyse the operations of equity and debt (bond) markets including interest-rate movements;
4. Demonstrate an understanding of the history, evolution, structure, operations and regulation of modern central banking and financial systems together with the design and conduct of monetary policy, with particular focus on the Asia-Pacific geographical entity.
5. Demonstrate an understanding of the principles of modern commercial banking and operational issues within a globalised economic system;
6. Demonstrate an understanding of the basic principles of the rapidly growing Islamic banking and finance and related issues;
7. Demonstrate an awareness of the functions of international financial institutions, such as the International Monetary Fund and the Bank for International Settlements
ContentLectures may include, but are not restricted to, the following topics:
1. Introduction to money, credit and banking
2. Credit markets and interest rates
3. Commercial banking, including Islamic banking and finance
4. Central banking and monetary policy with a focus on the Asia-Pacific region
5. International financial institutions and financial structure and the regulation of international banks and other financial institutions
Replacing Course(s)This course replaces ECON2540.
TransitionThis course is not available to students who have successfully completed ECON2540.
Industrial Experience0
Assumed KnowledgeECON2001 and ECON2002
Modes of DeliveryInternal Mode
Teaching MethodsLecture
Tutorial
Assessment Items
Examination: ClassMid semester examination
Essays / Written AssignmentsResearch Essay
Examination: FormalFinal exam in formal exam period.
Other: (please specify)Tutorial Tests
Contact HoursLecture: for 2 hour(s) per Week for Full Term
Tutorial: for 1 hour(s) per Week for 12 weeks
Timetables2014 Course Timetables for ECON3004