COURSE
MONEY AND BANKING
2006
Lecturer: Dr Karel Jansen

Part I The Banking System:
•
Financial Markets
•
Financial Intermediation and Development
•
Banking as Risk Management
•
Financial Fragility and Financial Crisis
•
Part II Money in the economy: monetary theory and monetary
policy
•
Money Supply and Money Demand
•
Monetary Theory: Money and the Real Sector
•
Monetary Policy
Part III Financial development and banking in Vietnam
•
The Banking System during Transition in Viet Nam

Financial markets
•
Introduction

on the activities of financial market institutions
•
Monetary policy
Monetary policy = policies designed to influence
macroeconomic aggregates by influencing the quantity or
price of money in the economy

Objectives
•
Introduction to certain
technical details
technical details pertaining to
money, financial markets, institutions, instruments,
developments and policies
•
Appreciation of different theoretical perspectives pertaining
to the
nature and behaviour
nature and behaviour of financial markets and
determination
determination of prices in these markets
•
Understanding the conduct and effectiveness of
monetary
monetary
policy
policy in the context of macroeconomic management and
policy issues pertaining to the development and
regulation
regulation

•
Divisibility
•
Stability in value
•
Liquidity

Money: historical development
•
Important consumables, including live
animals
•
Various luxury items – pelts, hides,
cloth, trinkets, etc
•
Metals
•
Paper
•
Electronic money

Money: measures of money
•
Coins and notes (M0)
•
M0 + demand deposits (M1)
•
M1 + savings and fixed deposits (M2)
•
M2 + deposits with other deposit taking