This the module page for EC6012, International Monetary Economics 2012.

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Introduction. Monetary economics occupies a strange space in economics. At one level the subject is highly theoretical, taking insights from general equilibrium theory and modern finance theory, as well as more unorthodox approaches like circuitist and post-Keynesian fields. The subject is empirical, dealing as it does with a large array of data usually in time series like exchange rates, currency movements, sovereign bonds, and so forth. And finally the subject is highly practical: at the business end of monetary economics policy makers have to make decisions that might affect millions of people's lives for the better or for the worse if the policy maker messes up.

This module looks in detail at the development of monetary economics as a subject, and gives students the tools to understand current policy debates at both a theoretical and practical level. The empirical side of the subject you will learn for yourselves (supported by tutorials) by writing a data-intensive research paper worth 100% of your grade in the subject.

Administration. My office hours are 9-11 Wednesdays, office KB 3-42, phone number 061 233611. Email is Please do read my email policy before sending me emails. Classes meet every Friday from 11-1 in S115. Slides and handouts for the lectures will be available before lectures.

Assessment. You will produce a 15-20 page research paper in an area of monetary economics. A one page proposal based on this template using these guidelines is due before lectures in week 6 to be discussed in office hours in weeks 7 and 8, and the full paper is due at the start of class in week 12. You must also submit the paper via turnitin. No lateness will be tolerated. A guide to the assessment is available here. Here is a nice slideshow on putting together a research paper from Berkley. A guide for Turnitin is here, and the grading template we will use is here.

30/3/2012: Detailed feedback is available on Turnitin now, and the overall marks are here.

Detailed Module Outline. Readings are all hyperlinked where possible, where not they are available as part of a course pack (.pdf, please be careful this file is quite large, so be on campus). You aren't expected to read every paper, but they will provide a good guide to the literature and give you a sense of the types of papers out there, which will help your research papers. Many of the readings are on Jstor and require you to be on campus or logged into the library. All books mentioned are available as ebooks through the library as well.

Jan 27. Trip to Dublin for Irish Economy Crisis Conference. This will give students a good overview of the Irish economic situation from some of the best economists around, and give food for thought on the research paper, as well as your MSC thesis topics.

Feb 3. Theories of money and banking, macroeconomics 101, the economics of the current account, and basic data analysis. (Lecture Slides).

  • Morris A. Copeland, Concerning the Origin of a Money Economy, The American Journal of Economics and Sociology , Vol. 33, No. 1 (Jan., 1974), pp. 1-17
  • Armen A. Alchian Why Money? Journal of Money, Credit and Banking, Vol. 9, No. 1, Part 2 (Feb., 1977), pp. 133-140
  • R. A. Radford The Economic Organisation of a POW Camp Economica, New Series, Vol. 12, No. 48 (Nov., 1945), pp. 189-201
  • E. Leamer, Macroeconomic Patterns and Stories Springer, 2009, Chapters 1, 2, 3. Available as an ebook in the library.

Feb 10. Central banking, money and inflation, the construction of the Eurozone monetary system, monetary policy implementation. (Lecture Slides)

Feb 17. Banking, Financial Intermediation, and Crisis. (Lecture Slides)

Feb 24. Balance of payments, flow of funds analysis. (Lecture Slides)

Mar 2. Regulation. Or lack thereof.(Lecture Slides)

Mar 9. Digging into theory, 1: The Basics. (Lecture Slides)

Mar 16. Digging into theory, 2: The not-so-Basics. (Lecture Slides)

Mar 23. Money, finance, interest, and inflation targeting (Lecture Slides)

Mar 30. Business cycles in monetary theory (Lecture Slides)

April 6. Sovereign Defaults. (Lecture Slides)

April 13 No Lecture.

April 20. Recap and Feedback.


Some important databases and useful sites.

EU Statistical Database Warehouse

Irish Central Bank

CSO Database Direct.

Bloomberg table of bond maturities.

Calculated Risk Graph Galleries


Flow of Funds accounts for the US:

Detailed Flow of Funds Accounts for the US:

Glossary of International Economics Terms: