Money and Banking

Course code GECO6470Units 10Level 6000Faculty of Business and LawNewcastle Business School

This course aims to familiarise students from different academic backgrounds and majors with the basic concepts, theories and principles that explain the evolution of money and banking. The main topics covered in this course are the operations of modern banking and financial institutions under different market structures and degrees of openness, the functions and operations of modern central banks, and the conduct of monetary policy by the central bank and international banking (for example, the Eurocurrency market). Case studies will investigate the conduct of central banking in a range of countries from the Pacific Rim and Indian Ocean Rim.

Not available in 2014

Previously offered in 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005, 2004
Objectives1.For students to become familiar with the basic concepts, theories and principles that explain the function and evolution of money and banking.
2.Develop an insight into the properties and role of money and other financial assets within a modern monetary economy, with particular reference to Australia.
3.Acquire an understanding of how the operations of modern banking and financial institutions, particularly those of Australia, developed and are affected by different market structures, regulatory r¿gimes and degrees of international openness.
4.To understand the functions and operations of modern central banks, and of the main financial institutions and markets comprising the Australian financial system, with emphasis on banking, share markets and government budget financing.
5.To be able to critically evaluate the way that central banks conduct monetary policy with reference to the Asia-Pacific, and particularly the Australian, policy settings.
6.To understand the role of the Bank of International Settlements, the way in which international banking and international financial markets operate, and interrelationships among theory, policy and events across national economies.
ContentMonetary Institutions
- Why study money, banking and financial markets?
- Functions and forms of money.
- Origins of banking.
- The evolution and future of money.
- Economic behaviour of depository institutions.
- Depositary institutions and the money supply process.
Financial Institutions
- Understanding interest rates.
- Portfolio choice: theory of asset demand.
- The behaviour of interest rates.
- Functions and features of Non-depository Financial Institutions
- Market behaviour of Financial Institutions
Monetary Policy
- Fundamental forces in the regulation and deregulation of banking.
- Principles of regulation of depositary and non-depository institutions.
- Economic analysis of banking regulation.
- Central banking and monetary policy.
- The role of international financial institutions like the Bank of international Settlements, the World Bank, the Asian Development Bank, and the International Monetary Fund.
TransitionThere are no transition arrangements relevant
Industrial Experience0
Assumed KnowledgeNo assumed knowledge
Modes of DeliveryExternal Mode
Flexible Delivery / Student Centred Learning
Internal Mode
Teaching MethodsLecture
Laboratory
Tutorial
Assessment Items
Examination: ClassQuiz
Essays / Written Assignments
Examination: Formal
ProjectsMajor Group Project
Contact HoursLecture: for 3 hour(s) per Week for Full Term