EE 432 Monetary Theory and Policy

3 (3-0-6)

Prerequisites: EE312

Monetary supply and demand. The role of the financial system at the macro-level; monetary policy goals, tools, policy implementation, and transmission mechanisms in the real economy, emphasizing the role of monetary policy in the business cycle, which targets inflation. The role of the central bank. The relationship between monetary and fiscal policies. The role of monetary policy in the open economy by considering the link between foreign exchange rate policy and changes in the macroeconomic and financial environment.