MONETARY THEORY AND POLICY PROGRAMME COURSE DESCRIPTION

Code	Name of the Course Unit	Semester	In-Class Hours (T+P)	Credit	ECTS Credit
ECF445	MONETARY THEORY AND POLICY	7	3	3	7

GENERAL INFORMATION
Language of Instruction :	English
Level of the Course Unit :	BACHELOR'S DEGREE, TYY: + 6.Level, EQF-LLL: 6.Level, QF-EHEA: First Cycle
Type of the Course :	Compulsory
Mode of Delivery of the Course Unit	-
Coordinator of the Course Unit	Prof. BÜLENT EŞİYOK
Instructor(s) of the Course Unit	Assist.Prof. REYHAN ÖZEŞ ÖZGÜR
Course Prerequisite	No

OBJECTIVES AND CONTENTS
Objectives of the Course Unit:	This course aims to provide the student with the competency to analyze the economic consequences of the monetary policy instruments and the public economy intervention.
Contents of the Course Unit:	Contents of the course include the subjects such as objectives, instruments and aims of Monetary policy, Central bank balance sheet items, Interest theories and rational expectations theory.

KEY LEARNING OUTCOMES OF THE COURSE UNIT (On successful completion of this course unit, students/learners will or will be able to)

Define the basic concepts of money and monetary policy, and explain the functions and independence of central banks and the money supply process. Describe monetary policy instruments, objectives and targets, and evaluate alternative monetary policy strategies, including stability programs. Explain the structure and functioning of the international financial system and the theories of exchange rate determination. Analyze money demand theories and interest rate determination, and use the IS-LM model to assess the effects of monetary and fiscal policies. Explain the transmission mechanisms of monetary policy and evaluate the relationships among money, income and inflation within the framework of rational expectations theory. Evaluate the historical development and current practice of monetary policy in Türkiye using the theoretical frameworks covered in the course.

WEEKLY COURSE CONTENTS AND STUDY MATERIALS FOR PRELIMINARY & FURTHER STUDY
Week	Preparatory	Topics(Subjects)	Method
1	Week 1	Description and Functions of Money Objectives and Goals of Monetary Policy	-
2	Week 2	Money Supply and Demand	-
3	Week 3	Indicators and Instruments of Monetary Policy	-
4	Week 4	Central Banking and Reflection of the applications of Monetary Policy to the balance of Central Bank	-
5	Week 5	Financial Policies, Financial Institutions and International Financial System	-
6	Week 6	Monetary Policy Strategy	-
7	-	MID-TERM EXAM	-
8	Week 7	Interest Rate , IS-LM Model	-
9	Week 8	Monetary and Fiscal Policy in the IS-LM Model	-
10	Week 9	Money and Income - Effectiveness of Monetary Policy and Transfer mechanisms	-
11	Week 11	Money and Inflation	-
12	Week 12	Rational Expectations Theory	-
13	Week 13	Determination of Exchange Rate	-
14	Week 14	Monetary Policy in Türkiye	-
15	Week 15	General Revision	-
16	-	FINAL EXAM	-
17	-	FINAL EXAM	-

SOURCE MATERIALS & RECOMMENDED READING
Mishkin, F. S. (2019). The economics of money, banking, and financial markets (12th ed.). Pearson. Özatay, F. (2016). Monetary policy and banking in Turkey. Istanbul Bilgi University Press. Eğilmez, M., & Kumcu, E. (2013). Economic policy: Theory and the Turkish experience. Remzi Kitabevi.

ASSESSMENT
Assessment & Grading of In-Term Activities	Number of Activities	Degree of Contribution (%)	Description	Examination Method
Mid-Term Exam	1	50		Classical Exam
Final Exam	1	50		Classical Exam
TOTAL	2	100

Level of Contribution
0	1	2	3	4	5

KNOWLEDGE
Theoretical
	Programme Learning Outcomes	Level of Contribution
		0	1	2	3	4	5
1	Define the basic concepts of economics, administrative and human sciences. (Bloom 1)			2
2	Evaluate the economic environment and overall sustainability of firms. (Bloom 4)		1

KNOWLEDGE
Factual
	Programme Learning Outcomes	Level of Contribution
		0	1	2	3	4	5
1	Relate principles and concepts of economics and finance with other disciplines. (Bloom 4)		1
2	Define principles, concepts, methods and theories related with economics and finance. (Bloom 1)				3

SKILLS
Cognitive
	Programme Learning Outcomes	Level of Contribution
		0	1	2	3	4	5
1	Interpret the charts and tables related to the field. (Bloom 2)			2

SKILLS
Practical
	Programme Learning Outcomes	Level of Contribution
		0	1	2	3	4	5
1	Evaluate the theoretical models of economic policies which have direct or indirect effects by using the facts and dynamics of the economic system.(Bloom 4)				3
2	Analyze economic and financial reports. ((bloom 4)		1
3	Use basic mathematics, statistics and econometric methods and tools to solve economic and financial problems. (Bloom 3)		1
4	Interpret the operation of current economic, political and social events by using institutional information related with Economics and Finance.(Bloom 2)			2

OCCUPATIONAL
Autonomy & Responsibility
	Programme Learning Outcomes	Level of Contribution
		0	1	2	3	4	5
1	Organize economic and financial activities in humanitarian and social terms with adherence to ethics. (Bloom 4).		1

OCCUPATIONAL
Learning to Learn
	Programme Learning Outcomes	Level of Contribution
		0	1	2	3	4	5
1	Develop a critical perspective on national and international economic, political, social, financial and development problems. (bloom 6)				3

OCCUPATIONAL
Communication & Social
	Programme Learning Outcomes	Level of Contribution
		0	1	2	3	4	5
1	Follow the agenda on economics, politics and social issues and improve himself/ herself. (bloom 6)					4

OCCUPATIONAL
Occupational and/or Vocational
	Programme Learning Outcomes	Level of Contribution
		0	1	2	3	4	5
1	Analyze current issues and problems by using the structure and properties of Macro and Microeconomics and variables. (Bloom 4)					4
2	Evaluate the effectiveness of the general economic system and public policies and their effects on markets and basic economic variables.(Bloom 4)					4
3	Analyze the cause and effect relationships between the relevant economic variables. (Bloom 4)				3
4	Evaluate the expected trends and portfolio analyzes in interest and exchange rates within the framework of the general financial system. (Bloom 4)			2

WORKLOAD & ECTS CREDITS OF THE COURSE UNIT
Workload for Learning & Teaching Activities
Type of the Learning Activites	Learning Activities (# of week)	Duration (hours, h)	Workload (h)
Lecture & In-Class Activities	14	3	42
Preliminary & Further Study	14	2	28
Land Surveying	0	0	0
Group Work	0	0	0
Laboratory	0	0	0
Reading	14	2	28
Assignment (Homework)	0	0	0
Project Work	0	0	0
Seminar	0	0	0
Internship	0	0	0
Technical Visit	0	0	0
Web Based Learning	0	0	0
Implementation/Application/Practice	0	0	0
Practice at a workplace	0	0	0
Occupational Activity	0	0	0
Social Activity	0	0	0
Thesis Work	0	0	0
Field Study	0	0	0
Report Writing	0	0	0
Final Exam	1	1	1
Preparation for the Final Exam	8	5	40
Mid-Term Exam	1	1	1
Preparation for the Mid-Term Exam	6	6	36
Short Exam	0	0	0
Preparation for the Short Exam	0	0	0
TOTAL	58	0	176