Course

Central Banks and Monetary Policy

University of Illinois at Urbana-Champaign

The course "Central Banks and Monetary Policy" delves into the intricate workings of central bank policies and their influence on financial markets and the broader economy. This comprehensive course equips learners with the ability to analyze macroeconomic indicators such as interest rates, inflation, and unemployment, enabling them to evaluate central bank actions and their implications for the economy.

Throughout the course, participants will gain valuable insights into a range of topics, including the Market for Federal Funds, the Federal Reserve's functions and operations, monetary policy's impact on the real economy, financial crises, and much more. By mastering the skills to extract pertinent information from economic and financial data, individuals will be better prepared to make informed decisions in their professional careers and personal financial endeavors.

  • Gain an understanding of central bank policies and their effects on the economy
  • Learn to analyze macroeconomic relationships between interest rates, inflation, and unemployment
  • Explore the impact of monetary policy on the real economy and financial crises

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Central Banks and Monetary Policy
Course Modules

The course modules provide an in-depth exploration of central bank policies, interest rates, the functions of the Federal Reserve, monetary policy's impact on the real economy, and the response to financial crises. Participants will develop a comprehensive understanding of these crucial topics, enabling them to analyze central bank actions and their implications for the broader economy.

Course Orientation

The course orientation module familiarizes participants with the course structure, instructor, and fellow learners. It includes an orientation quiz to gauge comprehension of the introductory material.

Module 1: Interest Rates

Module 1: Interest Rates delves into the intricacies of the market for federal funds, nominal and real interest rates, treasury securities, and the term structure of interest rates. Participants will also explore the significance of money market mutual funds and securitization.

Module 2: The Federal Reserve

Module 2: The Federal Reserve provides an in-depth understanding of the history, structure, and key functions of the Federal Reserve system. Participants delve into the Federal Reserve's balance sheet, open market operations, and the tools used to influence the money supply and interest rates.

Module 3: Monetary Policy and the Real Economy

Module 3: Monetary Policy and the Real Economy explores the impact of monetary policy on the economy, discussing topics such as the natural rate of unemployment, Okun’s Law, the Phillips Curve, and rule-based monetary policy. Participants also examine how changes in monetary policy affect the economy and the response to supply shocks.

Module 4: Financial Crises

Module 4: Financial Crises delves into historical financial crises, including the Panic of 1907 and the Great Depression. Participants explore the response to the 2008 financial crisis, liquidity provision, and fiscal responses to financial crises.

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