School: SBS Batch : 2019-22

Program: BBA Current Academic Year: 2021-2022

Branch: IB Semester:VI
1 Course Code BBA 025
2 Course Title Monetary Economics
3 Credits 3
4 Contact Hours 3-0-0
Course Type Discipline Specific Elective (DSE)
5 Course The objectives of this course are:
Objective a) to provide a conceptual framework of monetary economics and how it
is related with real economy
b) to introduce analytical concepts related to monetary policy
c) to expose the learners to different aspects of financial markets
d) to impart skills in students in analysing recent developments in the
world in the context of money, monetary policy, financial markets and
the banking sector
6 Course CO1: The student will be able to define money and money supply, along with
Outcomes identifying the concepts of money multiplier and demand for money
CO2: The student will be able to describe reasons and objectives of monetary
policy and its impact on the economy
CO3: The student will be able to apply this knowledge base and interpret it in
terms of financial instability and crises as well as in the recent context of the
financial systems.
CO4: Students will be able to compare and analyse the monetary measures taken
by government across countries.
CO5: Students will be able to formulate implications of monetary policy for
businesses.
7 Course This module is intended as an introduction to the money supply, exchange, control
Description and its relevance in today’s world with financial markets, instruments and crises.
This will also enrich understanding of students for analysing and discussing
monetary policy for economy in general and businesses in particular.
8 Outline syllabus CO Mapping
Unit 1 Introduction – Concept of Money and Money Supply
A Introduction, a brief history of CO1
money
B Functions and CO1
Definitions of Money
C Monetary Base and Monetary CO1
Base Multiplier
Unit 2 Demand for Money
A Quantity Equation and CO1
Quantity Theory of Money
B Keynes’ Contributions –Transaction Demand, Precautionary CO1
Demand, Speculative Demand and

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 Liquidity Trap
C Friedman’s Contribution to theory of demand for money CO1
Unit 3 Monetary Policy
A Goals, targets and indicators of monetary policy CO1, CO2
B Instruments of monetary policy – OMO, variations in CO1, CO2
reserve requirements
C Instruments of monetary policy – SLR, Moral suasion, CO1, CO2
selective credit controls and credit monitoring arrangements
Unit 4 Central Banking System and
Commercial Banks
A History, Evolution and Instruments of Monetary policy used by CO2, CO3
Central Banks
B Efficiency and competition inthe financial sector: CO2, CO3
competitive supply of money
C Administered interest ratesand economic performance CO2, CO3
Inflation targeting and the Taylor rule
Unit 5 Financial Markets, Banks
and Financial Crises
A Distinctiveness of Credit fromBonds CO3
B Demand and Supply of Credit CO3
C Financial crisis of 2008 CO3
Mode of Theory
examination

Weightage CA MTE ETE

Distribution 30% 20% 50%
Text book/s* Gupta, S B. Monetary Economics-Institutions, Theory and Policy, S Chand (1982)
Handa, Jagdish. Monetary Economics, Routelage (2008)
Other Banking and Interest Rates in a World Without Money: The Effects of
References Uncontrolled Banking Fischer Black, Published Online: 19 SEP 2015
Arestis, P., & Sawyer, M. C. (Eds.). (2006). A handbook of alternative
monetary economics Edward Elgar Publishing. Chicago)

POs PO1 PO2 PO3 PO4 PO5 PO6 PSO PSO PSO
COs 1 2 3
CO1 2 2 1 - 2 - 2
1-Slight (Low)
CO2 1 1 1 1 1 - 1
2-Moderate
CO3 2 2 1 2 1 2 1 (Medium)
3-Substantial
CO4 2 1 2 2 1 2 2
(High)
CO5 2 3 3 2 2 2

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