Money and Banking (ECON30005)

Undergraduate level 3Points: 12.5On Campus (Parkville)

You’re viewing the 2020 Handbook:
Or view archived Handbooks
You’re currently viewing the 2020 version of this subject
As part of the University’s response to COVID-19 and the associated Government restrictions and guidelines, most subjects will continue to be delivered online in Winter and Semester 2.
For information about the University’s phased return to campus and in-person activity in Winter and Semester 2, please refer to the on-campus subjects page.

Please refer to the LMS for up-to-date subject information, including assessment and participation requirements, for subjects being offered in 2020.

Overview

Availability
Semester 1
FeesLook up fees

This course provides an overview of the economic principles that underlie the operation of banks and other financial institutions. The impact of monetary policy in Australia will also be examined with particular emphasis on the roles played by the Reserve Bank and other banking and financial institutions. Topics may include how economic theory applies to financial markets; the process of financial intermediation; available financial statistics; the money supply process and the implementation of monetary policy; money in the macroeconomy; the recent behaviour of major financial aggregates; the 1997/98 Asian economic crisis; financial regulation and deregulation; the monetary transmission mechanism; and a discussion of the recent approach to monetary policy in Australia. The course emphasises institutional and public policy issues, providing an Australian perspective on this topical subject.

Intended learning outcomes


  • Explain how financial institutions improve welfare outcomes by facilitating borrowing and lending outcomes that would not otherwise occur
  • Synthesise how financial institutions transform the risk and liquidity structure of financial assets and remove informational asymmetries and identify the subsequent impact on borrowing and lending opportunities
  • Describe the role of the financial intermediary and the function of financial institutions in facilitating financial intermediation
  • Analyse the implication of expectations in economic markets generally and in financial markets particularly;
  • Explain regulation and deregulation of economic markets in general and of financial markets in particular
  • Evaluate the implementation of, and recent approach to, monetary policy in Australia and explain the transmission of monetary policy throughout the economy
  • Describe the role of money and financial institutions in recent problems in the world economy
  • Apply relevant theories to the real world issues and scenarios, such as how the institutional structure of the Reserve Bank Board can be designed to minimise the incentive to deliver undesirable outcomes
  • Critically evaluate the relevance of competing theories. For example, the extent to which different types of market failure apply to financial markets and consequently how best to regulate financial markets.

Generic skills

  • High level of development: written communication; application of theory to practice; interpretation and analysis.

  • Moderate level of development: oral communication; collaborative learning; problem solving; statistical reasoning; critical thinking; synthesis of data and other information; evaluation of data and other information; accessing data and other information from a range of sources; receptiveness to alternative ideas.

  • Some level of development: team work; use of computer software.

Last updated: 14 March 2025

Eligibility and requirements

Prerequisites

Both of the following:

Code Name Teaching period Credit Points
ECON20002 Intermediate Microeconomics
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
 12.5
ECON20001 Intermediate Macroeconomics
Semester 2 (On Campus - Parkville)
 12.5

Corequisites

None

Non-allowed subjects

None

Recommended background knowledge

Please refer to Prerequisites and Corequisites.

Inherent requirements (core participation requirements)

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Last updated: 14 March 2025

Assessment

Due to the impact of COVID-19, assessment may differ from that published in the Handbook. Students are reminded to check the subject assessment requirements published in the subject outline on the LMS

DescriptionTimingPercentage

Assignment 1

  • 1000 words (total)
Week 615%

Assignment 2

  • 1000 words
Week 1015%

End of Semester Examination

  • 2 hours
Hurdle requirement: Successful completion of this subject requires a pass (50%) in the final exam.		During the examination period70%

Last updated: 14 March 2025

Dates & times

  • Semester 1
    Principal coordinatorMei Dong
    Mode of deliveryOn Campus (Parkville)
    Contact hoursTwo 1-hour lectures and a 1-hour tutorial per week
    Total time commitment170 hours
    Teaching period 2 March 2020 to 7 June 2020
    Last self-enrol date13 March 2020
    Census date30 April 2020
    Last date to withdraw without fail 5 June 2020
    Assessment period ends 3 July 2020

    Semester 1 contact information

    mei.dong@unimelb.edu.au

Time commitment details

170 Hours

Last updated: 14 March 2025

Further information

Last updated: 14 March 2025