Financial markets play a vital role in economic growth and development. At the same time, financial volatility highlights the importance of central banks in conducting monetary policy and maintaining financial stability. This course consists of two parts. The first reviews key concepts in monetary theory, including interest rates, money market equilibrium, and the dynamic AD-AS model. Students will develop an understanding of how monetary policy influences macroeconomic outcomes and economic stabilisation. The second part focuses on monetary policy and the role of central banks. Students will examine monetary policy frameworks, the money supply process, policy instruments, transmission mechanisms, exchange rate policy, and the challenges of policy implementation. Through SMU-X experiential learning, students will work on real-world projects with the Central Bank of Vietnam, applying economic theory to practical policy issues such as monetary framework modernization, financial market oversight, and exchange rate management. These projects strengthen critical thinking, problem-solving, teamwork, and communication skills. As an SMU-XO course, students will also participate in an immersive experience in Vietnam through guest lectures, interactions with local students, and business visits, enhancing their global awareness and cultural competence while fulfilling the Global Exposure requirement. Teamwork forms a key component of the course and is assessed through group projects and peer evaluations.
This course aims to help students:
• Revise the key theories and strategies in modern Macroeconomic Management model.
• Understand the conduct and strategies of Monetary Policies, especially from the central bank's point of view.
• Solve real-world problems given by a central bank and acquire crucial teamwork skills
• Gain insight into financial markets business environment and develop potential networking through interactions with local businesses and industry experts.
• First-hand experience with the rich culture and gaining different life-skills through interaction with local university students and other cultural exchange activities.