Economics 375 - Seminar: The Theory and Practice of Central Banking

What role do central banks play in the management of short-run economic fluctuations? What has driven the recent global trend towards more powerful and independent central-banking institutions? This course explores the theoretical foundations that link central bank policy to real economic activity. Building on this theoretical background, the monetary policy frameworks and operating procedures of key central banks are then examined. Much of the analysis focuses on the current practices of the U.S. Federal Reserve and the European Central Bank, with a view to identifying the relative strengths and weaknesses of the two institutions. Prerequisite: ECO 220, ECO 253 and a course in either international finance or money and banking such as ECO 275 or ECO 296.

Instructor Permission. Not open to first-years, sophomores