Cours 2022-2023

Monetary Policy [ECONM834]

  • 5 crédits
  • 30h
  • 1er quadrimestre
Langue d'enseignement: Anglais / English
Enseignant: RYCHALOVSKA Yuliya

Acquis d'apprentissage

The course aims to examine various theoretical and empirical topics on monetary policy, with the focus on both global and domestic (European) aspects of monetary policy conduct. The course will provide an overview of the different dimensions of monetary policy and central banks’ related tasks, and it aims to enhance the understanding of the interdependencies between monetary policy, financial system and the macroeconomy. In this context, the course will offer general, theoretical as well as practical insights into aspects related to the strategy as well as the implementation of monetary policy. In addition, we will address the issues of the global financial integration and its implications for the monetary policy conduct; the causes and consequences of the most recent financial crisis; challenges faced by the monetary authorities, and the resulting policy choices.


The course consists of five chapters:

  1. Monetary Theory. Introduction. Main concepts. Phillips curve, expectations and monetary policy.
  2. Current practice of monetary policy conduct:
    • Monetary policy goals, strategies, instruments and procedures
    • Monetary policy transmission mechanism
  3. Monetary policy in the times of the crisis.
    • Differences between conventional and unconventional monetary policies
    • The rationale behind alternative unconventional tools, and the associated costs and benefits; transmission mechanism of unconventional policy measures
    • Monetary policy and the “Great Recession”. Lessons from the crisis
    • Monetary policy response to COVID19 pandemic
    • Monetary policy and financial stability
  1. Monetary policy analysis: overview of the modeling approaches
  2. Credibility of monetary policy: analytical foundations and institutional aspects
    • Commitment versus discretion: optimal monetary policy
    • Benefits of commitment
    • Institutional aspects of monetary policy credibility

Description des exercices

As a practical application of the tools and concepts studied in class, students (working in groups) will be asked to conduct a monetary policy case study for the selected country. The objective of this exercise is to enhance understanding of the major concerns of monetary policy and the factors that determine how monetary policy is conducted by central banks in different national settings, depending on the institutional, economic and financial environment. This task should enable students to analyse and compare differences in the conduct of monetary policy in different countries in a rigorous manner, improve research and analytical skills.

Méthodes d'enseignement

The course is taught in English and consists of lectures supported by slides and recommended readings. This academic year the course will be given in the classroom (if the capacity allows that) or in Teams. The first lecture will take place in the classroom.

Students are encouraged to ask questions about the material covered in the course and to actively participate in each session. They are also invited to follow the monetary and financial news in order to stay up-to-date with the current events.

Documents (slides, additional readings) to the course: All documents will be progressively made available on the course website on Webcampus and/or Teams.



Mode d'évaluation

Written exam. Work in groups “Monetary Policy Case Study” – 20% of the grade.

Sources, références et supports éventuels

See website of course for lecture notes (slides)  and recommended readings.

Langue d'enseignement

Anglais / English

Lieu de l'activité


Faculté organisatrice

Faculté des sciences économiques, sociales et de gestion
Rue de Bruxelles, 61
5000 NAMUR


Etudes de 2ème cycle