ECO3203 Monetary Economics

This course covers topics on modern monetary theory, monetary policy and related topics concerning macroeconomic management in general. These topics include money demand and supply, interest rates, exchange rates, the role of the central bank; and monetary policy. The main emphasis throughout is on developing and applying analytical frameworks that help improve students’ understanding of the impact of monetary and other policy instruments on the economy and business environment. The major topics to be discussed are based on demand and supply theories of money, the relationship between money and the key macroeconomic variables, the conduct of monetary policy and the transmission mechanism of the monetary policy. Uganda’s monetary policy strategy will be taken as a special case in articulation of the overall objective of the course.  

Course Objectives

The course primarily focuses on analyzing the theoretical models of Demand and Supply for Money. In addition, it evaluates the various kinds of monetary policies frameworks adopted in developed and less developed countries while pursing macroeconomic strategies and policies.    

Course Learning Outcomes
Upon completion of the course the students would have been trained to understand, explain and analyze:

• The role and function of money in the economy especially in determination of interest rates, inflation and output.
• The different views and schools of thought in monetary economics. 
• The economic issues behind the conduct of monetary policy and how it’s drawn and implemented.
• The transmission mechanism of monetary policy. 
• The various monetary policy strategies pursued in different countries taking a case study on Bank of Uganda’s monetary policy framework.