Central Bank and Monetary Policy｜Kyoto University OpenCourseWare

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Numbering Code	G-GAIS00 64045 LB42 G-GAIS00 64045 LB41 G-GAIS00 64045 LB43	Year/Term	2022 ・ First semester
Number of Credits	2	Course Type	Lecture
Target Year	From 1st to 3rd year students	Target Student
Language	Japanese and English	Day/Period	Mon.3
Instructor name	Not fixed (Kyoto University)
Outline and Purpose of the Course	About 350 years have passed since Sveriges Riksbank (the central bank of Sweden), the oldest central bank, was established in 1668. The backgrounds of and purposes for establishing central banks are differ from country to country. Current central banks, however, commonly play important roles that are essential for national and international economies. Those roles include; (1) keeping price stability through monetary policy, (2) maintaining sound financial system, and (3) providing settlement measures including the issue of banknotes. On the other hand, with the slowdown in economic growth and inflation rates in major economies after the Global Financial Crisis, central banks are facing tough challenges and are being required different roles from inflation fighters. This lecture covers the institutional framework of the central banking system and monetary policy. Students are expected to deepen understandings on roles of central banks to achieve sound economic growth through maintaining financial and economic stability. Other issues to be learned include, institutional frameworks necessary for the purpose, measures and operations of monetary policy, and relationships with the government and private sectors. After the course, students should have their own views on and be able to consider related issues on central banking and monetary policy.
Course Goals	By the endo of this course, students should: 　　Acquire basic knowledge of and understand outlines of the central bank system. 　　Understand the basic framework of monetary policy, its means, and the transmission mechanism. 　　Understand the outline of the unconventional monetary policy implemented in major countries. 　　Have their own views on and ability to discuss about the central banking system and monetary policy the lecture, reading the text and references, presentations, and discussions.
Schedule and Contents	Basically, lectures are given according to the following plan, but the schedule may be changed based on the incorporation of topics and the progress of the lecture. 1. Introduction: central bank and its role 2. Functions and operations of the Bank of Japan (as a representative example) 3. Historical development of the central banking system 4. Legal framework of the central banking system 5. Basics of macroeconomics for monetary policy 6. Purpose of monetary policy 7. Decision process of monetary policy: independence and accountability 8. Market operation 9. Implementation of monetary policy 10. Conditions for proper monetary policy 11. Asset prices and monetary policy 12. Unconventional monetary policy (1): overview and forward guidance 13. Unconventional monetary policy (2): balance sheet policy and negative interest rate policy 14. Unconventional monetary policy (3): evaluation of unconventional monetary policy 15. Wrap-up
Evaluation Methods and Policy	Participation (50%, including attendance, participation in discussions, etc.) and end-of-term reports (50%).
Course Requirements	Students are not required to have systematic knowledge of economics but expected to have interests in finance and economy.
Study outside of Class (preparation and review)	Preparations required for the lecture will be informed orally. Students are expected to gather and accumulate knowledge of related matters in newspapers and the Internet etc. on a routine basis.
Textbooks	Textbooks/References	Basic Plus Kinyuu-ron (Basic Plus, Money and Banking) ,2nd Edition, Nobuyoshi Yamori, (Chuo Keizai-sha), ISBN:978-4-502-29051-0, Japanese only. Relevant sections. Other materials will be distributed as needed.
References, etc.	Gendai-no Kinyuu-Seisaku, Riron-to Jissai (Modern Monetary Policy in Theory and Practice: Central Banking and Financial Markets), Masaaki Shirakawa, , ISBN:978-4-532-13344-3, Japanese Only. Chuou-Ginkou (Central Banks), Masaaki Shirakawa, , ISBN:978-4-492-65485-9, Japanese Only. Other materials will be distributed as needed.