Ekonomi Moneter (A)

The course Monetary Economics examines how money, the financial system, and monetary policy influence macroeconomic stability (inflation, output, and financial conditions). The discussion begins with the reasons economics studies money and financial markets, as well as the role of the financial system in resource allocation, risk management, and information transmission (Chapters 1–2). Students then learn the concept of money, its functions and characteristics, and how to measure money through monetary aggregates to interpret monetary conditions and liquidity dynamics (Chapter 3).

After establishing the conceptual foundation, the focus shifts to the central bank: its mandate, independence, credibility, and the policy dilemmas inherent in stabilizing prices and economic activity (Chapter 14). Students then explore the money supply process through balance sheet frameworks, the role of the monetary base, and the mechanisms of money creation, forming the basis for understanding how central bank policy operates through the financial system (Chapter 15). This section continues with monetary policy instruments (e.g., open market operations, interest rate policy, and liquidity management tools) and how these instruments are directed toward operational targets (Chapter 16). Students also evaluate monetary policy strategies and tactics: rules vs. discretion, the role of nominal anchors, policy consistency, policy communication, and the implications of policy design for credibility and stability (Chapter 17).

The second half of the course emphasizes modern monetary theory for macroeconomic analysis: the quantity theory, inflation, and money demand (Chapter 20); the goods market relationship via the IS curve (Chapter 21); and the formation of the monetary policy curve and the aggregate demand (AD) curve (Chapter 22). Students then apply the AD/AS framework to analyze shocks and policy responses (Chapter 23). The course further discusses monetary policy theory conceptually—objectives, trade-offs, dynamic consistency, and the role of institutions/policy rules (Chapter 24). Students examine how expectations (expected inflation, credibility, communication) shape policy effectiveness (Chapter 25), concluding with the transmission mechanisms of monetary policy (interest rate channel, asset price channel, and credit channel), which explain how changes in monetary instruments ultimately affect output and inflation (Chapter 26).

Throughout the course, students not only master concepts but also develop analytical and argumentative skills through the Case Method and Project-Based Learning: interpreting simple monetary indicators, drafting policy memos, designing and completing monetary policy-transmission analysis projects, and communicating findings in both academic and professional formats.