BA5833 CENTRAL BANKING
| Course Code: | 3125833 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (3.00 - 0.00) |
| ECTS Credit: | 8.0 |
| Department: | Business Administration |
| Language of Instruction: | English |
| Level of Study: | Masters |
| Course Coordinator: | Assoc.Prof.Dr. ÇAĞRI TOPAL, Prof.Dr. ERK HACIHASANOĞLU |
| Offered Semester: | Fall or Spring Semesters. |
Course Objectives
The nature of monetary policy as well as the financial markets has been changing dramatically over the last
few decades, especially after the global financial crises of 2007-09. Central banking more and more has been
regarded as an “art” rather than a science by some circles, as it requires judgement at every stage of the
process, from initial formulation to the final implementation. Moreover, effective expectations management
and communication strategies become one of the most important tools of today’s central bankers. The aim
of this course is to give the students a broad overview of the basic principles and the practical
implementation of central banking as well as the financial markets in an attempt to better understand the
monetary policy transmission mechanism. The course will start with an introduction to monetary operations
of central banks then explore the monetary policy in Turkey under different capital account regimes. In this
respect the selected financial crises in emerging markets as well as 2000, 2001 and 2007-09 financial crises
will be evaluated under the heading of crises management. The effects of New Corona Virus on economies
particularly on financial markets and central bank’s response will also be discussed.
Course Content
The aim of this course is to give the students a broad overvievw of both the basic principles and the practical implementation of central banking as well as functioning of the financial markets in an attempt to better understand how central bank operations affect financial institutions and the monetary policy transmisision mechanism.
Course Learning Outcomes
Upon successful completion of this course, students should be able to:
Course Specific Skills:
1. Understand the duties and responsibilities of Central Banks
2. Understand the selection of the targets such as exchange, monetary and inflation
3. Understand the concept of Impossible Trinity
4. Understand the concept of Monetary Policy Instruments
5. Develop skills in understanding the Open Market Operations and Financial Markets
6. Understand the relations with the Central Government
7. Understand the Central Bank Balance Sheet
8. Understand the Monetary Policy in Turkey under different capital account legislations
9. Understand the concept of Financial Stability
10. Understand the Macro-prudential Policies and Perspectives
11. Understand the Role of IMF, BIS, OECD, G-20 and other supranational institutions
12. Understand Central Bank Watch
Discipline Specific Skills:
13. Recognize how Central banking is useful in making the best managerial decisions
14. Demonstrate broad knowledge of concepts on the Central Banking
Personal and Key Skills:
15 Develop reading skills
16.Develop writing and discussion skills
Program Outcomes Matrix
| Level of Contribution | |||||
| # | Program Outcomes | 0 | 1 | 2 | 3 |
| 1 | They attain advanced level of knowledge in the functional areas of business administration such as strategic management, marketing, accounting, finance, organization management, human resources, and operations management. | ✔ | |||
| 2 | They are capable of synthesizing the knowledge that they attained in the area of business administration with the knowledge base that they developed in their undergraduate specialisms. | ✔ | |||
| 3 | They are capable of identifying and analyzing legal, environmental and social factors, which influence the basic functional areas of the business administration. | ✔ | |||
| 4 | They understand and implement rational, systematic and scientific approaches effectively in problem solving and decision-making processes. | ✔ | |||
| 5 | They are capable of applying, analyzing, synthesizing and evaluating the knowledge they developed in diverse fields efficiently. | ✔ | |||
| 6 | They are capable of transferring information by using efficient verbal and written communication techniques. | ✔ | |||
| 7 | They are capable of performing professional communication effectively also in English. | ✔ | |||
| 8 | They know methods of performing efficient teamwork. | ✔ | |||
| 9 | They are capable of understanding and synthesizing academic and scientific research in their areas and able to transform such research into useful knowledge. | ✔ | |||
| 10 | They have competence in all of the stages of scientific research and processes. | ✔ | |||
| 11 | They are knowledgeable in the areas of professional ethics and responsibility. | ✔ | |||
| 12 | They are capable of utilizing their knowledge and skills efficiently in global and multicultural contexts. | ✔ | |||
| 13 | They are knowledgeable in the issues of environment, social responsibility, social justice, quality and cultural values. | ✔ | |||
| 14 | They have a creative, innovative and critical perspective. | ✔ | |||
0: No Contribution 1: Little Contribution 2: Partial Contribution 3: Full Contribution