The course of Monetary Economics dives into the world of money, its role in economies, and how it's controlled. The rationale of understanding monetary economics lies in fact that we are not part of barter system where goods are directly exchanged for other goods, as considered inefficient. Monetary economics helps us understand how money facilitates transactions, promotes efficient allocation of resources, and keeps the economic engine running smoothly. Monetary policy, influenced by insights from monetary economics, is a key tool for managing inflation, unemployment, and economic growth. Deep insights into Indian monetary system will be drawn out focusing on institutions like RBI, NABARD, RRBs (Regional Rural Banks) and co-operative banks. In addition to these topics the course looks at international bodies like IMF-WB-ADB etc. The course prepares participants to competently evaluate monetary policies; recognize economic consequences associated with monetary systems and solve real life problems using principles from monetary economics.This course is an endeavor to explore fascinating field that delves into the intricate workings of money within an economy. Monetary economics is closely tied to macroeconomics. It examines the effects of monetary systems, including regulations and international aspects. Thus, studying monetary economics not only sheds light on how economies function efficiently but also reveals how monetary policy shapes economic dynamics.The scope of monetary economics is broad, encompassing the theory and practice of money's role in an economy. The course explores what money is (a medium of exchange, unit of account, store of value) and how it gains widespread acceptance within an economy. The course pertains to 4 credits which distributes its content into 10 weeks with four quadrant approach.Course Objective:To discuss and elaborate the fundamental aspects of money.Outline the structure of Indian financial system.To insights into the factors influencing demand and supply of money.To examine the movement of money supply and demand through various theories of money and price.To describe the Indian and International monetary system.To discuss and understand demonetization and it’s effect on Indian monetary system.
Overview
Syllabus
Week 1: Introduction to Money and Institution; Money, History of Money; Circular Flow of Money
Week 2: Financial System of India, An overview, Central Bank – Nature & Functions, Financial Markets
Week 3: Commercial Banks, Functions, Role of Commercial Banks in Economic Development, Structure of Commercial Banks
Week 4: Supply of Money, Money Supply, Determinants of Money Supply, Money Supply Functions, Supply of Money in India
Week 5: Demand For Money, Transaction Approach to Demand for Money, Theories of Demand of Money, Real Balance Effect
Week 6: Monetary Standards: An Introduction, Metallic Standards and Gold Standards, Bimetallic and Paper Currency
Week 7:Theory of Money and Business Cycle-Liquidity Preference Theory, Business Cycles
Week 8: Non-Banking Financial Intermediaries, The Classical System, The Neutrality of Money
Week 9: Indian and International Monetary System, RBI – NABARD, NABARD – RRB and Co-operative Banks, IMF - World Bank, ADB
Week 10: Demonetization or High Order Money, Demonetization: An Introduction, Demonetization: 2016 and its implications.
Exam Schedule
Taught by
Dr. Mehak Gulati
