In this course, we will analyze the process of creating money supply policies aimed at stabilizing the currency within the Euro system. Our analysis will look at issues both on the scale of the national economies, as well as issues at the level of the Euro-system’s integration into the broader world economy. We will be especially concerned with the institutional fundamentals of successful money supply policies and the integration of monetary realities into the overall equilibrium of the economy. In addition, we will be looking at empirical existing instruments, methods and problems of monetary policy within an economical con-text.
Prerequisites:
Introductory Macroeconomics
Learning outcomes:
By the end of the course, students should be able to:
- Understand the structures and functions of an interest-based market economy. It should become clear, how in an unstable world, security in economic processes is created through contracts made on the precondition of established property and owner rights, and how this is a fundamental condition of creating a stabile currency.
- Understand the reasons for a successful economy and current deficits in economic spheres with instable currencies.
Method of presentation:
Lectures and Discussions
Required work and form of assessment:
Final grades will be based on a mid-term (20%) and a final examination (25%), a term paper (25%), and oral participation (30%). Class attendance is required.
content:
I. INTRODUCTION
A. Property
B. Property as the basis of secure contracts
C. Property as the basis of stable currencies
D. Risk management of ECB
E. Equity and liquidity requirements for business banks
Goal: understand what economic security involves and how it is created through contracts and institutions.
II. The economic equilibrium in a money-based economy
A. private production of goods
B. public production of goods
C. production of goods by non-profit organizations
D. Consumption and investment in private households
E. the general economic equilibrium
Goal: recognize how successful market economies are organized.
III. Economic order and the power of money
A. The connection between monetary policy and economic development
B. The tasks of the central bank
C. Equilibrium in a security-based system
D. Erosion of stabilizing constraints under competitive conditions
E. Regulatory policy cycles
F. Learning from financial crisis
G. A new order in the financial markets
Goal: Understand money-based economies as an inter-institutional process, which needs to be continually reorganized.
Course plan:
1. Property
Literature: Hans-Joachim Stadermann, Das Eigentum, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 79-106.
2. Property as a precondition of secure contracts
Literature Hans-Joachim Stadermann, Der Vertrag, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 127-140.
3. Property as a precondition of a stable currency
Literature: Hans-Joachim Stadermann, Die Zentralbank in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S.267-282.
4. Risk management practices of the ECB
Literatur: Europäische Zentralbank (Hg.), Durchführung der Geldpolitik im Euro-Währungsgebiet, Frankfurt am Main, November 2008, S. 37-63.
5. Asset regulations and liquidity requirements
6. Production of private goods
Literature: Hans-Joachim Stadermann, Die Unternehmung, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 183-216.
7. Production of public goods
Literature: Hans-Joachim Stadermann, Die öffentlichen Haushalte, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S.217-248.
8. Production of goods by non-profit organizations
Literature: Hans-Joachim Stadermann, Nichtstaatliche Organisationen ohne Erwerbszweck, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S.249-260
9. Consume and investment
Literature: Hans-Joachim Stadermann, Der private Haushalt, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 153-182.
10. General equilibrium
Literature: Hans-Joachim Stadermann, Das nominale allgemeine Gleichgewicht, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 261-266.
11. The connection between monetary policy and economic development
Literature: Hans-Joachim Stadermann, Geldangebot der Zentralbank als Marktvorgang.
12. What a central bank should do and what the Euro-system accomplishes
Literature: Hans-Joachim Stadermann, Geldangebot der Zentralbank als Marktvorgang
13. Equilibrium in a secured asset standard system
Literature: Hans-Joachim Stadermann, Geldangebot der Zentralbank als Marktvorgang
14. Regulatory policy cycles
Literature: Stadermann, Zyklen der Regulierung und Deregulierung.
15. Learning from financial crisis
Open discussion.
16. A new order of the financial markets
Open discussion.
Required readings:
Europäische Zentralbank (Hg.), Durchführung der Geldpolitik im Euro-Währungsgebiet, Frankfurt am Main, November 2008.
The Power of Money: Theory & Practice of Central Bank Money in the Euro Zone
In this course, we will analyze the process of creating money supply policies aimed at stabilizing the currency within the Euro system. Our analysis will look at issues both on the scale of the national economies, as well as issues at the level of the Euro-system’s integration into the broader world economy. We will be especially concerned with the institutional fundamentals of successful money supply policies and the integration of monetary realities into the overall equilibrium of the economy. In addition, we will be looking at empirical existing instruments, methods and problems of monetary policy within an economical con-text.
Introductory Macroeconomics
By the end of the course, students should be able to:
- Understand the structures and functions of an interest-based market economy. It should become clear, how in an unstable world, security in economic processes is created through contracts made on the precondition of established property and owner rights, and how this is a fundamental condition of creating a stabile currency.
- Understand the reasons for a successful economy and current deficits in economic spheres with instable currencies.
Lectures and Discussions
Final grades will be based on a mid-term (20%) and a final examination (25%), a term paper (25%), and oral participation (30%). Class attendance is required.
I. INTRODUCTION
A. Property
B. Property as the basis of secure contracts
C. Property as the basis of stable currencies
D. Risk management of ECB
E. Equity and liquidity requirements for business banks
Goal: understand what economic security involves and how it is created through contracts and institutions.
II. The economic equilibrium in a money-based economy
A. private production of goods
B. public production of goods
C. production of goods by non-profit organizations
D. Consumption and investment in private households
E. the general economic equilibrium
Goal: recognize how successful market economies are organized.
III. Economic order and the power of money
A. The connection between monetary policy and economic development
B. The tasks of the central bank
C. Equilibrium in a security-based system
D. Erosion of stabilizing constraints under competitive conditions
E. Regulatory policy cycles
F. Learning from financial crisis
G. A new order in the financial markets
Goal: Understand money-based economies as an inter-institutional process, which needs to be continually reorganized.
Course plan:
1. Property
Literature: Hans-Joachim Stadermann, Das Eigentum, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 79-106.
2. Property as a precondition of secure contracts
Literature Hans-Joachim Stadermann, Der Vertrag, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 127-140.
3. Property as a precondition of a stable currency
Literature: Hans-Joachim Stadermann, Die Zentralbank in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S.267-282.
4. Risk management practices of the ECB
Literatur: Europäische Zentralbank (Hg.), Durchführung der Geldpolitik im Euro-Währungsgebiet, Frankfurt am Main, November 2008, S. 37-63.
5. Asset regulations and liquidity requirements
6. Production of private goods
Literature: Hans-Joachim Stadermann, Die Unternehmung, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 183-216.
7. Production of public goods
Literature: Hans-Joachim Stadermann, Die öffentlichen Haushalte, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S.217-248.
8. Production of goods by non-profit organizations
Literature: Hans-Joachim Stadermann, Nichtstaatliche Organisationen ohne Erwerbszweck, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S.249-260
9. Consume and investment
Literature: Hans-Joachim Stadermann, Der private Haushalt, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 153-182.
10. General equilibrium
Literature: Hans-Joachim Stadermann, Das nominale allgemeine Gleichgewicht, in: Stadermann, Nominalökonomik, Tübingen: Mohr Siebeck, 2006, S. 261-266.
11. The connection between monetary policy and economic development
Literature: Hans-Joachim Stadermann, Geldangebot der Zentralbank als Marktvorgang.
12. What a central bank should do and what the Euro-system accomplishes
Literature: Hans-Joachim Stadermann, Geldangebot der Zentralbank als Marktvorgang
13. Equilibrium in a secured asset standard system
Literature: Hans-Joachim Stadermann, Geldangebot der Zentralbank als Marktvorgang
14. Regulatory policy cycles
Literature: Stadermann, Zyklen der Regulierung und Deregulierung.
15. Learning from financial crisis
Open discussion.
16. A new order of the financial markets
Open discussion.
Europäische Zentralbank (Hg.), Durchführung der Geldpolitik im Euro-Währungsgebiet, Frankfurt am Main, November 2008.
Stadermann, Hans-Joachim. Wirtschaftspolitik. Tübingen: J.C.B. Mohr (Paul Siebeck), 1992. (selected chapters)
Stadermann, H.-J./Steiger, O. (ed.), Allgemeine Theorie der Wirtschaft, Band II, Hans-Joachim
Stadermann, Nominalökonomik, Tübingen 2006. (selected chapters)
Homan, K. / Suchanek, A. Ökonomik, Eine Einführung, Tübingen: Mohr Siebeck, 2000.
Stadermann, H.-J. / Steiger, O. Allgemeine Theorie der Wirtschaft, Band I, Kritik der Schulökonomik, Tübingen: Mohr Siebeck, 2001.