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Durham University

Faculty Handbook 2022-2023

Module Description

Please ensure you check the module availability box for each module outline, as not all modules will run each academic year.

Department: Economics and Finance


Type Open Level 3 Credits 20 Availability Available in 2022/23 Module Cap Location Durham


  • Macroeconomics (ECON2011) OR Economic Theory (ECON****)


  • None.

Excluded Combination of Modules

  • None.


  • This module builds upon the knowledge that students have acquired in Macroeconomics. The module aims at providing students with the instruments for analysing monetary issues in a range of theoretical models and for analysing the theory and practice of monetary policy in modern industrialised economies.


  • Central Bank Independence.
  • Background to Monetary Policy .
  • Credibility and Time-Inconsistency in Monetary Policy.
  • International Monetary Policy Co-ordination.
  • The Demand for and supply of Money.
  • The Monetary Transmission Mechanism.
  • Monetary Policy in Practice.
  • Exchange Rates and External Arrangements.

Learning Outcomes

Subject-specific Knowledge:
  • Students should develop:
  • their appreciation of the importance of monetary factors as opposed to non-monetary ones in determining output and inflation.
  • a critical understanding of the economic arguments that relate to rival monetary policy options.
Subject-specific Skills:
  • Upon completion of the module, students should be able to apply the tools and models learned to key issues of modern monetary policy.
Key Skills:
  • Written Communication - through summative assessment.
  • Planning and Organising e.g. by preparing for the examination
  • Initiative e.g. by searching relevant literature and information in preparation for summative assessment
  • Numeracy e.g. by applying core mathematical and statistical skills to answer examination questions

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • Teaching is by lectures, tutorials and support for student-centred learning. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes and private study. Formative assessment is by means of a test. Summative assessment is by means of a written examination.

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Lectures 20 1 per week 1 hour 20
Tutorials 8 Fortnightly 1 hour 8
Revision lecture 2 2 in term 3 1 hour 2
Preparation and Reading 170
Total 200

Summative Assessment

Component: Examination Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
One written examination 3 hours 100%

Formative Assessment:

1 essay

Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University

If you have a query about a specific module or degree programme, please contact the appropriate department.

If you have a question about Durham's modular degree programmes, please visit our FAQ webpage. If you have a question about modular programmes that is not covered by the FAQ, or a query about the on-line Faculty Handbook, please contact us using the Comments and Questions form below.