ECON 516 M1 - Monetary Theory

Campus: Urbana-Champaign

Description:

Micro- and macroeconomic theories of the supply of and demand for money; money substitutes and their significance; review of current empirical research; money in closed economy, macroeconomic, and static general equilibrium models; and analysis of inflation and unemployment. Course Information: Prerequisite: Consent of instructor. MSPE Graduate Student Standing.

Special Instructions:

This course seeks to highlight and discuss relevant policy lessons derived from asymmetric information models of financial intermediation. In this spirit, the course will explore firm- and household-level financing decisions and constraints in imperfect capital markets, as well as the pros and cons of various government interventions designed to mitigate such imperfections in normal and crisis times. The course has a clearly applied focus. After reviewing the underlying analytical framework, full attention will be paid to descriptive and econometric evidence from both developed and developing countries that will often defy common knowledge in the policy arena. In addition, current events will be used as a trigger for the application of concepts and/or data introduced in class.

Academic Program Restrictions:

MS:Economics:Policy Econ -UIUC

Option 1

Course Level: Graduate

Credit: 4

Term(s): Fall , Summer