Financial and Monetary Economics

Recommended Prerequisites

Microeconomics I, Microeconomics I

Teaching Methods

Theoretical lectures and practical lectures.  The practical lessons consist in the resolution of  exercises.

Learning Outcomes

Objectives - Learning the history of monetary instruments and monetary systems and the characteristics of the main types of financial assets, financial system structure and mechanism of money supply. Study of monetary theory and international payments
Competencies - Understanding the causes and determinants of the evolution of monetary instruments and monetary systems, the nature of the activity of financial institutions and their relationship with other sectors of the economy and ability to explain the process of money supply by the banking system, and the functioning of the international payments mechanism.

Work Placement(s)

No

Syllabus

   1. The functions and forms of money and monetary systems
   2. Financial markets and financial instruments
   3. Financial institutions
   4. The central bank and the supply of money
   5. Fundamental principles of financial decision
   6. Interest rates: level, term structure and interest rate risk
   7. Demand for money
   8. Money,  output and inflation
   9. Money , exchange rates and exchange rate regimes
 10. European monetary integration.

Head Lecturer(s)

Hélder Miguel Correia Virtuoso Sebastião

Assessment Methods

Continuous Assessment
Intermediate test: 50%. Final examination 50%: 100.0%

Bibliography

BANCO CENTRAL EUROPEU. A execução da política monetária na área do euro [Em linha]. Frankfurt : BCE, 2008. [Consult. 17 Abr. 2013]. Disponível em WWW: <URL: http://www.ecb.int/pub/pdf/other/gendoc2008pt.pdf>.
BANCO CENTRAL EUROPEU. Euro area monetary aggregates : conceptual reconciliation exercise [Em linha]. Frankfurt : BCE, 1999. [Consult. 17 Abr. 2013]. Disponível em WWW: <URL: http://www.ecb.int/pub/pdf/other/eamaen.pdf>.
FONSECA, José Alberto Soares da - Economia monetária e financeira. Coimbra : Imprensa da Universidade de Coimbra, 2010 [BP 336.07 FON]
LEWIS, Mervyn K. ; MIZEN, Paul D. - Monetary economics, Oxford : Oxford University Press, 2000. [BP 336.74 LEW]
WASH, Carl E. - Monetary theory and policy. 3rd ed.. Cambridge, Mass. : MIT Press, 2010. [BP 336.74 WAL]