İKT335

School of Economics and Administrative Sciences \ Economics

3

6

Compulsory

Turkish

İKT233

Economics

Determinants of money supply, money demand, interest rates, exchange rates, risk, and inflation; monetary transmission mechanism; financial system and issues in the financial sector; objectives of monetary policy; central bank independence; interaction between fiscal and monetary policy; monetary policy regimes; monetary policy instruments; central bank balance sheet; financial crises.

Fatih Özatay (2015). Parasal İktisat: Kuram ve Politika. Efil Yayınevi, Yedinci Baskı.

First, to discuss the fundamental theories in monetary theory and recent developments, with a particular focus on the issues of open and emerging market economies. Second, to examine universal monetary policy practices and central banking based on theoretical foundations. Third, to focus on monetary policy implementation and challenges in Turkey.

1. Gains in-depth knowledge of the evolution of monetary theory and current developments.
2. Analyzes why and how contemporary monetary policy is implemented.
3. Evaluates the fundamental challenges faced by central banks and their approaches to solutions.
4. Analyzes additional challenges faced by monetary authorities in Turkey and similar countries and develops policy recommendations.

Week 1: Introduction. Money demand
Week 2: Money demand. Money supply
Week 3: Money supply. Determination of interest rates
Week 4: Determination of interest rates. Determination of exchange rates
Week 5: Determination of exchange rates. Monetary transmission channels
Week 6: Causes of inflation
Week 7: Problems in the financial system. Objectives of monetary policy
Week 8: Central bank independence. Interaction between fiscal and monetary policy
Week 9: Interaction between fiscal and monetary policy. Monetary control and exchange rate-based monetary policy regimes
Week 10: Inflation targeting
Week 11: Monetary policy instruments
Week 12: Financial crises

• Midterm 30 %
• Quiz 30 %
• Final 40 %