MONETARY THEORY AND PRACTICE LECTURE NOTES

Abstract

The purpose of this course is to enable you to acquire sufficient knowledge of monetary theory and policy. The course content is designed to ensure that the state of the art of monetary theory is given sufficient exposition, while at the same time introducing sufficient doses of policy and empirical topics with special reference to developing countries, in particular African countries. The course adequately prepares you for advanced research and practice in the area plus policy analysis and implementation. As the course outline indicates, course is in two parts. Part I deals with issues relating to various aspects of monetary theory including the role of money, money demand, money supply, money and inflation, monetary management, and central banking as well as money in the open economy. Part II covers the economics of financial institutions and financial intermediation, relationship between financial development and economic growth, money in an open economy, international financial institutions, and global economy. As well as providing theoretical frameworks for analysing banking intermediations and the conduct of monetary policy, the course will also present empirical evidence and policy actions wherever possible to support the theories