Cursos / 1º Ciclo / Faculty of Economy and Business Management :: Economics

Versao Portuguesa

ECONOMIA MONETÁRIA E FINANCEIRA - 2018/2019

3º curricular year
Semestralidade: 1st semester
ECTS: 6

Teachers

Leading Teacher: Prof. Doutor Renato Domingues
Assistant Professor: Prof. Doutor Renato Domingues

Class type and School hours

Orientação Tutorial : 1 Horas
Teórico-prática : 2 Horas

Main Aims/Objectives

Provide the students of:
i) knowledge of the fundamental aspects and the functioning of financial markets, specifically money market and foreign exchange market;
ii) capacity for analysis and possible consequences of monetary policy; and
iii) a solid understanding of financial theory in order to understand the phenomenon of financial innovation that has characterized the markets in its various aspects.

Specific Aims/Objectives

Understand the key concepts, namely:
• the overall functioning of the financial system and its importance in the economy;
• the concept of currency, its functions and its characteristics;
• the main theories of money demand;
• the money supply and its determinants;
• the role of central banks;
• the objectives and instruments of monetary policy;
• the foreign exchange market;
• understand financial crises;
• among others.

Skills to be acquired

Understanding the functioning of the financial system, the role of the authors involved in it, as well as the different markets and instruments. Mastering the intervention of the monetary and financial authorities.

Teaching Procedures

The classes have a component of exposition, which are used in audiovisual media and a practical component where through the analysis or problem solving are explored concepts explained.

Programme

1. OVERVIEW OF THE FINANCIAL SYSTEM
1.1 Characterization of the financial system
1.2 Financing of the economy and the role of banks
1.3 Markets and financial instruments
1.4 Financial Intermediaries: types and functions
1.5 The monetary and financial institutions
1.6 Financial System of the Euro Area
1.7 Regulation of Financial System and new trends

2. MONEY
2.1 Concept
2.2 Functions
2.3 Payment Systems
2.4 Measures

3. THE DEMAND FOR MONEY
3.1 Quantity Theory of Money
3.2 Theory Keynesian and Neo-Keynesian theories
3.3 Friedman and the Modern Quantity Theories of Money
3.4 A comparative view of the theories

4. MONEY SUPPLY AND CENTRAL BANKS
4.1 Determinants of money supply
4.2 Money Multiplier
4.3 Functions and characterization of Central Banks
4.4 Characterization of the European System of Central Banks
4.5 Monetary aggregates

5. MONETARY POLICY
5.1 Definition and characterization of monetary policy
5.2 Instruments of monetary policy
5.3 Transmission Mechanisms of Monetary Policy
5.4 Single Monetary Policy

6. FOREIGN EXCHANGE MARKET
6.1 Definition and characterization of foreign exchange markets
6.2 Exchange rates
6.3 Determination of exchange rates in the long run
6.4 Determination of exchange rates in the short run
6.5 Real exchange rates and effective exchange rates

7. FINANCIAL CRISES
7.1 Brief evolution of financial crises
7.2 Types of financial crises
7.3 The financial crisis of 2007-2009
7.4 European Sovereign Debt Crisis
7.5 Possible factors of crisis resolution

Evaluation Type

The assessment follows the regulations provided for the University.
The continuous assessment is composed by two tests.

Teaching Resources

The presentation of the contents will take place predominantly in the classroom, where they will be exposed the issues of the program, using:
1. the Microsoft PowerPoint;
2. the book adopted; and
3. practical exercises.

Keywords

1. Money
2. The Demand for Money
3. Money Supply
4. Monetary Policy
5. Financial System
6. Financial Crises

Main Bibliography

Author Abreu, Margarida,Cândida Ferreira, Vitor Escária; António Afonso
Title Economia Monetária e Financeira
Edition 2ª ed.
Place Lisboa
Editor Escolar Editora
Year 2012
Author Mishkin, Frederic S.
Title Economics of Money, Banking, and Financial Markets
Edition 10ª ed.
Place Boston
Editor Prentice Hall
Year 2012
Author Abel L. Costa Fernandes, Paulo R. Mota, ; Carlos F. Alves, Manuel Duarte Rocha
Title Mercados, produtos e valorimetria de activos finan
Edition 2ª Edição
Place Coimbra
Editor Almedina
Year 2014

Complementary Bibliography

Author Mishkin, Frederic S; and Eakins Staneley G.
Title Financial Markets and Institutions
Edition 7ª ed.
Place Boston
Editor Prentice Hall
Year 2011
Author Fonseca, José Soares da
Title Economia Monetária e Financeira
Edition 1ª ed.
Place Coimbra
Editor Imprensa da Universidade de Coimbra
Year 2010