Money and Banking

  1. Introduction to Monetary Analysis, Institutions and Policy: The functioning of The Gold Standard and its Breakdown.

  2. The Functions and Forms of Money. Innovations in Money. New Money. How is money created? What Determines the Supply of Money? Tools of Money Supply Control. Open market operations, money multiplier, currency ratio, reserve ratio.

  3. The Complete Money Supply Model − Determinants of the money supply and bank panics. The Monetary Base − Budget Deficits and the Monetary Base. Conduct of Monetary Policy. What are the appropriate goals and targets? Money and Inflation. Monetization of the debt.

  4. International Financial System and Monetary Policy. Foreign exchange and the money supply. Why do we need financial markets? Financial markets vs. financial intermediaries. Understanding Interest Rates. How Do Interest Rates Fluctuate?

  5. Term Structure of Interest Rates.

  6. Overview of the Indian Financial System. Banking Industry: Structure, Competition, and Regulation (with special reference to the Indian context). Banking Sector: The Role of Development. Banking Sector Reforms in India. Financial Crises and the Subprime Meltdown. Banking and the Management of Financial Institutions. Basel Norms and their implications. 

References: 

1. Money in a theory of finance, J.G. Gurley and E.S. Shaw. (1960).  

2. The Economics of Money, Banking and Financial Markets, F.S. Mishkin. (2007).  

3. Money and banking: contemporary practices, policies, and issues. Tyrone Black and D. L. Daniel. (1985). 

4. Ministry of Finance, GoI; Report of the Committee on Banking Sector Reforms, (1998). 

5. Principles of Money, Banking and Financial Markets, L.S. Ritter and W.L. Silber. (1974).