Monetary Economics - Period 5

There are many misunderstandings about money and banks. That is why this course is an absolute must for people who want to understand the role of the financial system in a modern economy. The current system is first discussed, with attention being paid to the role of both the central bank and the commercial banks. The money creation process is central here. Alternatives to the current system are also discussed. Among other things, it examines so-called full reserve banking promoted in the 1930s by, among others, Irving Fisher and Friedrich Hayeks proposal for the Denationalization of money. We also consider Silvio Gesells Schwundgeld, Bitcoin and central bank digital currency.

Central to all this is the question of what society can expect from a financial system, the role of prices in the decisions of producers and consumers and the importance of financial stability. In passing, it is explained why a modern economy cannot function without money and why an interest-free financial system is a difficult matter.

Vrije Universiteit Amsterdam (VU Amsterdam) awards credits based on the ECTS system. Contact hours listed under a course description may vary due to the combination of lecture-based and independent work required for each course therefore, CEA's recommended credits are based on the ECTS credits assigned by VU Amsterdam. 1 ECTS equals 28 contact hours assigned by VU Amsterdam.