ECO 2500 and ECO 2501 constitute the core offering in Monetary Theory, and the content of each is determined at the beginning of the session. The major theme is an examination of the relationship between money, prices, economic activity, and welfare. Topics include theoretical and empirical work on the demand for and the supply of money, the definition of money, the term structure of interest rates, efficient capital markets, targets and indicators of monetary policy, nominal interest rates, price expectations, the role of fiscal and monetary policy in economic stabilization, theoretical and empirical research on short-term and long-term Phillips curves. ECO 2500H is a prerequisite for ECO 2501H.)
