Ordu University Lifelong Learning Programme

Description of Individual Course Units

Course Unit Code	Course Unit Title	Type of Course Unit	Year of Study	Semester	Number of ECTS Credits
İKT3022013221	MONEY THEORY AND POLITICS II	Compulsory	3	6	6

Level of Course Unit

First Cycle

Objectives of the Course

The aim of the course is • to provide the students with a general knowledge on monetary theory and policy. • To equip students with the knowledge and skills of financial institutions, central banking, money supply and demand and money policy

Name of Lecturer(s)

Yrd.Doç.Dr. Aslı Güler

Learning Outcomes

1	The general structure of monetary policy, goals and tools of monetary policy, para-fiscal policies will be understood.
2	The use of monetary policy instruments, monetary policy strategies, functioning of monetary transmission mechanisms and monetary and fiscal and para-fiscal policy applications will be learned.
3	By using macroeconomic analysis techniques, interaction mechanisms between financial sector and real sector can be analysed for an economy, especially for Turkish economy
4	The experiences that was attained by the institutions which implemented economic stabilisation measures and monetary policies will be learned

Mode of Delivery

Evening Education

Prerequisites and co-requisities

Recommended Optional Programme Components

Week 1 Meaning, features and occuring and kinds of money Week 2 Functions of money and definition of money suply Week 3 Functions of financial markets, basic structure and instruments of financial markets Week 4 Functions of financial intermediation, mainly financial institutions and financial institutions in Turkey Week 5 Cental Bank of Republic of Turkey, commercial banks, İstanbul Stock Exchange Market, bankers and other financial institutions. Week 6 Definition of money suply and the role of central bank (theoretical definition of money suply and CBRT definition of money suply Week 7 process of money suply (deposits, loan, and money multipliers) Week 8 Mid-term exam Week 9 Theories of the demand for money (Neo-classical Quantity Theory : Fisher approach and Cambridge approach) Week 10 Modern quantity theory (Chicago approach of Neo-classical school) and Keynesian money demand theory Week 11 Basic structure, goals and instruments of monetary policy Week 12 Strategies of monetary policy (exchange rate targeting, monetary targeting, inflation targeting) Quiz Week 13 The applications of monetary policies in Turkey since 1923 Week 14 Monetary and fiscal policies, real and nominal sectors and IS-LM analysis, inefficiency of moneary and fiscal policies (crowding out) Week 15 Macroeconomic general balance analysis: according to different economic schools transmitions mechanism (general balance analysis in Keynesian and Classical systems) Week 16 End-of-term exam

Course Contents

• Introduction (why study money?, what is money?, definitions of money and it's functions) , • Financial system (financial markets, it's structure, tools and functions, financial institutions) , • Financial sector in Turkey (the central bank, commercial banks, investment and development banks, insurance companies, credit cooperatives) , • Money supply (the definitions of money supply and the role of central banking, multiple deposit creation and money supply process, money multiplier end factors that determine the money multiplier) , • Demand for money (Quantity Theory of Money, Cambridge approach to money demand, Keynes's Liquidity Preference Theory, Friedman's Modern Quantity Theory, Neo Keynesian money demand theories, empirical evidence on the demand for money, monetary policy) , • General structure of monetary policy (goals of monetary policy, tools of monetary policy: required reserve ratio, discount policy, open market operations, interest rate, selective credit control) , • Monetary policy strategies (the role nominal anchor, exchange rate targeting, monetary targeting, inflation targeting, monetary policy application in Turkey), • Monetary and fiscal policies (real and monetary compartment in economy, IS-LM analysis) , transmission mechanisms of monetary policy

Weekly Detailed Course Contents

Week	Theoretical	Practice	Laboratory
1	The basic structure of monetary policy, main and intermediate objectives of monetary policy.
2	Monetay policy instruments: Required reserve ratio, discount policy, open market operations, cash ratio.
3	Monetay policy instruments: Interest rate, the comparison of quantitative monetary policy instruments, selective monetary policy instruments, monetary policy instruments used by CBRT
4	The role of nominal anchor, Monetary policy strategies( monetary targeting, exchange rate targeting, inflation targeting)
5	The monetary policy actions in Turkey since 1923.
6	Monetary and fiscal policies, the analysis of the interactions between real and financial sectors via IS-LM curves.
7	Para-fiscal policy actions, the problem of inefficiency of monetary and fiscal policies: crowding-out.
8	Mid-term exam
9	The improvements in the theory of monetary policy
10	Macroeconomic general balance analysis: according to different economic schools transmissions mechanism (general balance analysis in Keynesian and Classical systems)
11	Monetary transmission channels
12	The factors affecting to monetary transmission mechanism
13	The effectiveness of monetary transmission channels in Turkey
14	Types of macroeconomic crises: real crises, financial crises.
15	Monetary crises, 2008 global financial crisis
16	End-of-term exam