This is an archived handbook for a previous year. The current undergraduate and postgraduate handbooks can be viewed using the links above.

Undergraduate Handbook 2025-2026 (archived)

Module ECON3111: Monetary Economics

Department: Economics

ECON3111: Monetary Economics

Type	Level	Credits	Availability	Module Cap	Location
Tied	3	20	Available in 2025/2026		Durham

Tied To

Pre-requisites

Macroeconomics (ECON2011) OR Economic Theory (ECON2291)

Corequisites

None.

Excluded Combinations

None.

Aims

This module builds upon the knowledge that students have acquired in Macroeconomics. The module aims at providing students with the instruments for analysing monetary issues in a range of theoretical models and for analysing the theory and practice of monetary policy in modern industrialised economies.

Content

Topics are likely to inlude:
Central Bank Independence.
Background to Monetary Policy .
Credibility and Time-Inconsistency in Monetary Policy.
International Monetary Policy Co-ordination.
The Demand for and supply of Money.
The Monetary Transmission Mechanism.
Monetary Policy in Practice.

Learning Outcomes

Subject-specific Knowledge

Students should develop:
their appreciation of the importance of monetary factors as opposed to non-monetary ones in determining output and inflation.
a critical understanding of the economic arguments that relate to rival monetary policy options.

Subject-specific Skills

Upon completion of the module, students should be able to apply the tools and models learned to key issues of modern monetary policy.

Key Skills

Written Communication - through summative assessment.
Planning and Organising - e.g. by preparing for the examination
Initiative - e.g. by searching relevant literature and information in preparation for summative assessment
Numeracy - e.g. by applying core mathematical and statistical skills to answer examination questions

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

Teaching is by lectures, seminars and support for student-centred learning. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes and private study. Formative assessment to help prepare for the examination. Summative assessment is by means of an in-person examination.

Teaching Methods and Learning Hours

Activity	Number	Frequency	Duration	Total Hours	Attendance Monitored
Lectures	20	1 per week	1 hour	20
Seminars	8	4 in term 1, 4 in term 2	1 hour	8	Yes
Revision Classes	2	2 in term 3	1 hour	2
Preparation and Reading				170
Total				200

Summative Assessment

Component	Component Weighting	Element	Length/Duration	Element Weighting	Resit Opportunity
Examination	100%	On Campus Written Examination	2 hours	100%

Formative Assessment

One written piece of work to prepare students for the summative examination.

Students who do not attend monitored activities shown under Teaching Methods and Learning Hours, or who fail to complete the summative or formative assessment(s) specified above, may be subject to the Academic Progress procedures defined in the University's General Regulation V, and may be required to leave the University.