International Program for Islamic Economics and Finance Page | 0
LECTURE SYLLABUS
SUBJECT:
(COURSE CODE: EI7419I)
INTERNATIONAL PROGRAM
FOR ISLAMIC ECONOMICS AND FINANCE FACULTY OF ECONOMICS
UNIVERSITAS MUHAMMADIYAH YOGYAKARTA
International Program for Islamic Economics and Finance Page | 1 SYLLABUS
Faculty : Economics
Programme : International Program for Islamic Economics and Finance Course Title : Monetary Economics
Course Code : EI7419I
Status : Professional Course (MKB)
Credit Hours : 3
Contact Hours : 3 x 50 Minutes Pre-requisites (if any) : Macroeconomics Co-requisites (if any) :
Instructional Strategies : Lectures, Discussions, Quiz, Project paper/Assignment Instructor/Lecturer : Faaza Fakhrunnas, M.Sc.Fin
Semester Offered : 4th Semester
A. Course Synopsis
This course deals with the role of money mostly in the context of a closed economy.
It covers various mainstream theory of money as well as the analysis of monetary policy. The major topic that will be discussed include money supply and demand, the relationship between money and the key macroeconomics variables, the conduct of monetary policy, rational expectations, time inconsistency, and the transmission mechanism of policy, etc.
B. Course Objectives
To explore monetary economics theory and understand the monetary policy in Indonesia
C. Discussion Topic
1. The theory of money
2. Interest rate; its behavior and risk structure
3. Central Banking and The Conduct of Monetary Policy 4. Monetary Theory
5. Inflation in monetary economics 6. Foreign Exchange market
D. Teaching Materials
1. Financial system and the reason why learning monetary economics 2. The basic understanding of money
3. Understanding Interest Rate and Its Behavior
4. An Economic Analysis of Financial Market and Lesson From Financial Crisis 5. The risk and Term Structure of Interest Rate and Financial Market Theory 6. The role of central bank in Indonesian Perspective
7. The money supply theory
8. Tools of Monetary Policy and its strategy 9. The foreign Exchange rate market
10. Quantity theory, inflation, and the demand for money 11. The IS Curve and monetary policy and aggregate demand 12. Monetary Policy Theory
13. Aggregate demand and supply
International Program for Islamic Economics and Finance Page | 2 E. Learning Outcomes
1. Knowledge and Understanding (Basic Competence)
Upon the completion of the course, the students should be able to:
Understand the role and function of money in the economy, especially in the determination of inflation and output.
Understand the different views and schools of thought in monetary economies
2. Intellectual Skill (Standard Competence)
Upon the completion of the course, the students should be able to:
Understand the economic issues behind the conduct of monetary policy.
Understand how monetary policy carried out in major economies in the world.
3. Practical, Managerial Skill and Attitude
Upon the completion of the course, the students should be able to:
Understand the formulation of expectations and the important role of expectation in economic decisions and policies
F. References
1. Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets, 10th Edition, 2007, Addison Wesley
2. Website BI www.bi.go.id 3. Related papers and books
