Welcome - Monetary Theory: Microeconomic Aspects ECON 5502   Monetary Theory: Microeconomic Aspects
This course focuses on the financial behaviour of four agents: (a) the central bank, i.e. The Bank of Canada, (b) commercial banks, (c) nonbank financial intermediaries, (d) the household and firm. Four important issues will be discussed: (1) the kinds of financial assets created in a modern economy; (2) the way in which money and credit are supplied in the modern economy, particularly the operations of the central bank and of financial intermediaries which enable these institutions to expand or contract the quantity of money and credit; (3) the behaviour of the economic agents who demand and supply financial assets; and (4) the framework in which monetary policy can be analyzed.