Program Overview

ECON2050 Money and Finance

Unit Description

This unit examines the evolution of money and finance from ancient times to the present. It provides students with an understanding of the nature of money, the role and characteristics of financial markets, and the instruments and institutions that affect them. The central theme is that innovation in money and finance has been as important as other types of innovation in shaping the modern world. Topics may include the nature of money, interest rate determination and the yield curve, central banking and the actions of monetary authorities, the innovations of behavioural finance and crypto-currencies, analyses of money markets, bond markets, equity and derivatives markets.

Learning Outcomes

On successful completion of this unit, you will be able to:

• Identify, define and analyse contemporary issues in money and finance.
• Demonstrate a capacity to work independently, including the ability to research, form arguments and write professionally proficient short-discussion pieces.
• Critique the academic literature, examining alternative and creative ways of thinking about financial markets in business and policy environments.

Assessment Tasks

• Skills development: Presentation (20%): The purpose of this assessment is for you to work collaboratively and develop expertise in crafting solutions to real-world related issues. You will work in teams to examine real-world scenarios and produce and submit a video presentation in which all group members must present a part.
• Formal and observed learning: Test (30%): The purpose of this assessment is for you to practice how to solve a problem on the spot and to construct a persuasive argument. You will work independently to express your understanding of the sphere of money and finance as well as to apply the knowledge in real-world scenarios.
• Formal and observed learning: Exam (50%): The purpose of this assessment is for students to demonstrate the expertise they have gained in Money and Finance. You will participate in a 2-hour exam held during the University Examination period.

Delivery and Resources

This unit includes a weekly 2-hour lecture and one 1-hour tutorial. Students are highly encouraged to attend the lecture and tutorial every week to get the most benefits out of this unit. All materials for the unit, such as recorded lectures, lecture notes, readings, practice questions, and discussion questions, will be available to students on the unit iLearn site.

Recommended Textbooks and Materials

• The Economics of Money, Banking and Financial Markets, 13th Global Edition, by Frederic Mishkin.
• Financial Markets, Institutions and Money (4th ed), by Kidwell et al.
• Financial Markets and Institutions (12th ed.), by Madura.
• The Ascent of Money, by Niall Ferguson.
• Money: The Unauthorized Biography--From Coinage to Cryptocurrencies, by Felix Martin.
• The end of Alchemy: Money, Banking and the future of the Global Economy, by Mervyn King.
• A History of money from ancient times to the present day, by Glyn Davies.

Unit Schedule

The unit schedule includes the following topics:

1. Introduction (Week 1)
2. The Evolution of Money in Theory and Practice (Weeks 2 and 3)
3. Interest Rates (Week 4)
4. Central Banking and Money supply (Week 5)
5. Money Demand and Markets (Week 6)
6. Bond Markets (Week 8)
7. Equity Markets (Week 9)
8. Tools of monetary policies (Week 10)
9. The conduct of monetary policies (Week 11)
10. Derivatives and Options Markets (Week 12)
11. Future of Money and Finance (Week 13)

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

• Academic Appeals Policy
• Academic Integrity Policy
• Academic Progression Policy
• Assessment Policy
• Fitness to Practice Procedure
• Assessment Procedure
• Complaints Resolution Procedure for Students and Members of the Public
• Special Consideration Policy

Student Support

Macquarie University provides a range of support services for students, including:

• Academic Success
• The Library
• IT Support
• Accessibility and disability support with study
• Mental health support
• Safety support to respond to bullying, harassment, sexual harassment and sexual assault
• Social support including information about finances, tenancy and legal issues
• Student Advocacy provides independent advice on MQ policies, procedures, and processes