MONETARY ECONOMICS II
GENERAL INTRODUCTION
This course guide tells you the nature of the course the materials you are going to use and how
you are expected to use them for meaningful benefits. It is expected that at least two hours
should be devoted to the study of every unit. For each course units there are exercises. You are
encouraged to do them. They serve as points of reflections, which are necessary for proper
understanding of the facts. At the end of each unit, there are tutor-marked assignments, which
you are expected to answer. They serve as revision and continuous assessment. Tutorial lectures
will be provided. This is the opportunity you have for a face-to-face contact with your facilitator.
Any area you did not understand will be explained during the tutorial classes.
COURSE AIMS
The course aims at exposing you (students) to the necessary information that will add to the
student’s knowledge on Monetary Economics. The aim of the course shall be achieved by:
Introducing you to the concept of Monetary Economics.
Examining the meaning, scope and nature of Monetary Economics.
Dilating copiously the roles of Monetary Economics .. ..
Assessing Monetary Economics architecture and design.
COURSE OBJECTIVES
Upon successful completion of this course, you should be able to: Discuss succinctly the concept
of Monetary Economics.
UNIT 1: MONEY
UNIT 2: DEMAND FOR MONEY
UNIT 3: SUPPLY OF MONEY
UNIT 4: TYPES OF FINANCIAL INSTITUTIONS
UNIT 5: FUNCTIONS OF FINANCIAL INSTITUTIONS
UNIT 6: INFLATION
UNIT 7: DEFLATION
UNIT 8: TOOLS OF MONETARY POLICIES
UNIT 9: INTERNATIONAL TRADE
UNIT 10: THE BALANCE OF PAYMENTS
UNIT 12: SCOPE OF PUBLIC FINANCE
UNIT 13: TAXATION AND FISCAL POLICIES
UNIT 14: PUBLIC DEBT
UNIT 15: NATIONAL INCOME
UNIT 16: ECONOMIC GROWTH AND DEVELOPMENT
UNIT 17: DEVELOPMENT PLANNING
UNIT 18: UNEMPLOYMENT
UNIT 19: MANAGEMENT OF FOREIGN OPERATION AND INTERNATIONAL
TRADE
For each study unit, which you are expected to spend at least three hours, there are specific
objectives. At the end of each unit, measure what you have learnt against the objectives. If there
is any deviation go back to the contents of the unit. There are textbooks, which you may go for
additional information. The exercise in each unit have to be attempted to ensure that you are
following the ideas being presented. In addition, there are tutor-marked assignments. You are
entreated to attempt them, as some of them will form part of the continuous assessment.
READING SECTION
Remember that your tutor’s job is to help you. When you need help, don’t hesitate to call and ask
your tutor to provide it.
1. Read this course guide thoroughly.
2. Organize a study schedule. Refer to the “Course overview” for more details. Note the time you
are expected to spend on each unit and how the assignments relate to the units. Whatever method
you choose to use, you should decide on and write in your own dates for working on each unit.
3. Once you have created your own study schedule, do everything you can to stick to it. The
major reason that students fail is that they get behind with their course work. If you get into
difficulties with your schedule, please let your tutor know before it is too late for help.
