Central Banks and Monetary Policy

About this course

The purpose of this course is to provide you with an understanding of central bank policies and how such policies affect financial markets and the economy. The main aim of this course is to provide you with insights about the macroeconomic relationships between interest rates, inflation, and unemployment that allow you to assess central bank actions and appreciate how this action will affect the economy. The ability to extract relevant information from financial market and economic data about the macroeconomic environment and central bank actions is an important skill that will be useful for your decision-marking in your professional career and your personal financial choices.

What you will learn

• Describe and understand the functioning of the key money markets.
• Describe the main policy objectives of central banks.
• Examine how, by controlling interest rates, monetary policy influences inflation and unemployment.
• Describe how monetary (and fiscal) authorities respond to stress in financial markets.