ECTS - Instituto Superior de Contabilidade e Administração

ECTS - Instituto Superior de Contabilidade e Administração

ECTS - Instituto Superior de Contabilidade e Administração do Porto
Degree: Entrepreneurship And Internationalization (evening Courses)
Course: Currency and Bank Operations
Academic Year: 2012/2013
Academic year: 1
Term: Winter Semester
Attendance: Mandatory
Number of Credits (ECTS): 6.0
Theoretical/Practical Work (hours): 3.0 h
Course Responsible Teacher: Doutora Celsa Machado
Objectives:
Understand the functioning of the monetary and financial systems and realize their importance on economic activity.
Identify the main characteristics of the Portuguese financial system.
Identify and measure the key monetary aggregates and understand the process of money creation.
Be familiar with the current architecture of the European monetary system and to reflect critically on the monetary policy decisions
and their impact on the economy.
Recognize the nature, diversity and behaviour of interest rates, its relationship with monetary policy and its influence on investment
decisions.
Syllabus:
1. Financial System and Money
1.1. An overview of the financial system: markets; instruments and financial institutions
1.2. The Portuguese financial system
1.3. Money: meaning; functions, evolution of the payments system and measures
2. Interest rates
2.1. Measures and behaviour
2.2. Risk and term structure
3. Banks and other financial institutions
3.1. The economics of financial intermediation
3.2. Structure and behaviour of the banking system
3.3. Characterization of the major banking operations
3.4. Regulation and supervision of the banking system
4. Money supply
4.1. Central banks in the world today: objectives, requirements and structure
4.2. The balance sheets of the central bank and of banks
4.3. Money supply and the money multiplier
5. Money demand
5.1. Quantity theory of money
5.2. Keynes#s liquidity preference theory
5.3. Friedman#s modern quantity theory of money
6. Monetary policy
6.1. Goals and monetary policy instruments: general and of ECB
6.2. Transmission mechanisms of monetary policy
6.3. Monetary policy, inflation and output; monetary policy and fiscal and exchange rate policies
Objectives:
Theoretical-practical classes combining theoretical exposition with the presentation and discussion of practical exercises.
Assessment Methods:
Continuous evaluation:
 Term essay # 20%
 Two exams during classes # 80% (40%+40%)
Final evaluation:
 Final exam # 100%.
References:
ABREU, Margarida; Afonso, A.; Escária, V.; Ferreira, C., #Economia Monetária e Financeira#, 2ª ed., Escolar Editora, 2012
BANCO CENTRAL EUROPEU, #A Execução da Política Monetária na área do Euro#, 2008
BANCO CENTRAL EUROPEU, #A Política Monetária do BCE#, 2004
BANCO CENTRAL EUROPEU, #O Banco Central Europeu, o Eurosistema, o Sistema Europeu de Bancos Centrais#, 2011
CECCHETTI, Stephen G., #Money, Banking and Financial Markets#, McGraw-Hill, 2007
HOWELLS, Peter; Bain, Keith, #The Economics of Money, Banking and Finance: A European Text#, 4th ed., Prentice Hall, 2008
MATTHEWS, Kent; Thompson, John, #The economics of banking#, 2nd ed. Chichester : John Wiley & Sons, 2008
MISHKIN, Frederic S., #The economics of money, banking, and financial markets#, 10th ed., Prentice Hall, 2012
Doutora Celsa Machado
S. Mamede Infesta, 18 de Março de 2013