Monetary and Financial Policy

Recommended Prerequisites

Macroeconomics, mathematics and econometric at the level of a BA in Economics and English at the independent user level in reading.

Teaching Methods

Lectures and practical classes. Every week we discuss the “a week new”. Students exposition of two papers (from 122) and comments on other presentations.

Learning Outcomes

Presenting students with theoretical macroeconomic building blocks for the understanding of monetary and fiscal policy. Understand monetary policy at the European and north-American level as well as the GSP for the E.U.. The student must be able to understand and comment, written and oral, the monetary and fiscal policy applied since the winter of 2007 and also the aims of the new regulatory institutions proposed for E.U. and USA. Students must know thhe role of the Central Bank on monetary organization and the importance of the public budget balance for stabilization and growth. And so students must know the procedures of monetary policy; monetary transmission mechanisms; optimal behavior of banking and money supply; optimal choice of instruments with different kind of intermediate indicators and shocks. As wel as automatic and discretionary State revenues and expenditures and distortionary interventions.

Work Placement(s)

No

Syllabus

1. Monetary aggregates and interest rates

2. Monetary Policy: instruments and transmission mechanisms; targets and goals of the monetary policy; “rules versus discretionary”; the statute of central banks; monetary policy strategies

3. Fiscal policy: the state budget; balances and indicators; stabilization policies

4. Monetary and fiscal policy mix: the intertemporal budget restriction; coordination

5. Some other topics of monetary and fiscal policy.

Head Lecturer(s)

João Alberto Sousa Andrade

Assessment Methods

Continuous Assessment
Homework and class work 40% : 40.0%
Exam: 60.0%

Final Assessment
Exam: 100.0%

Bibliography

Manual principal | main textbook:
BOFINGER, Peter ; REISCHLE, Julian ; SCHACHTER, Andrea — Monetary policy : goals, institutions, strategies, and instruments. Oxford : Oxford University Press, 2001.
BUTI, Marco — Will the new stability and growth pact succeed? : an economic and political perspective [em linha]. Brussels : European Commission, 2006. Economic Papers. Nº 241 (Jan. 2006).
CHAÎNEAU, André — O que é a moeda?. Coimbra : Livraria Minerva Editora, 2000.
Outros manuais complementares | complementary books:
CRISE (A) financeira internacional. Fernando Alexandre [e tal]. Coimbra : Imprensa da Universidade de Coimbra, 2009.
EUROPEAN CENTRAL BANK — The implementation of monetary policy in the euro area : general documentation on eurosystem monetary policy instruments and procedures, WWW.ecb.int/udl.html?doc_id=gendoc_en