DETAILED SYLLABUS

Inflation and monetary systems

1. Information about the study program

1.1 University / Babes-Bolyai University, Cluj-Napoca
1.2 Faculty / Faculty of Economic Sciences and Business Administration
1.3 Department / Finance
1.4 Field of study / Finance
1.5 Program level (bachelor or master) / Bachelor
1.6 Study program / Qualification / Finance and Banks

2. Information about the subject

2.1 Subject title / Inflation and monetary systems
2.2 Course activities professor / Associate Professor Beju Daniela Georgeta, PhD
2.3 Seminar activities professor / Associate Professor Beju Daniela Georgeta, PhD
2.4 Year of study / III / 2.5 Semester / V / 2.6 Type of assessment / Summative / 2.7 Subject regime / Optional

3. Total estimated time (teaching hours per semester)

3.1 Number of hours per week / 3 / out of which: 3.2 course / 2 / 3.3 seminar/laboratory / 1
3.4 Total number of hours in the curriculum / 42 / out of which: 3.5 course / 28 / 3.6 seminar/laboratory / 14
Time distribution / Hours
Study based on textbook, course support, references and notes / 28
Additional documentation in the library, through specialized databases and field activities / 10
Preparing seminars/laboratories, essays, portfolios and reports / 15
Tutoring / 3
Assessment (examinations) / 2
Others activities ...... / -
3.7 Total hours for individual study / 58
3.8 Total hours per semester / 100
3.9 Number of credits / 4

4. Preconditions (if necessary)

4.1 Curriculum / -
4.2 Skills / -

5. Conditions (if necessary)

5.1. For course development / During the lecture there is a strong recommendation for students to avoid engaging in other activities like chatting, reading, listening, electronic and mobile chat, and others.
5.2. For seminar / laboratory development / It is recommended for students to have scientific calculators in order to perform the necessary computations.

6. Acquired specific competences

Professional competences / •Applying financial concepts, methods and financial instruments used for solving specific problems;
•Critical evaluation of concepts, methods and financial instruments used for solving specific problems;
•Understanding and interpretation of financial concepts, theories , methods and instruments in private and public entities/organizations;
•Identification and definition of financial concepts, theories, methods, and instruments in private and public entities/organizations;
•Usage of financial concepts, theories, methods and instruments in the development of projects/works.
Transversal competences / •Applying the principles, norms and ethical values of the profession within the own work strategy in an efficient and responsible way;
•Knowledge, understanding, analysis and use of concepts, theories, principles and basic methods of investigation and exploration specific market economy.

7. Subject objectives (arising from the acquired specific competences)

7.1 Subject’s general objective / Discipline is designed to familiarize students with key aspects that characterize the phenomenon of inflation and policies to combat it.
7.2 Specific objectives /
  • To introduce students to the main theoretical approaches for inflation ;
  • Development of skills in calculation and interpretation of quantified indicators of inflation;
  • Understanding the mechanism of inflation and the mode of its action in different monetary systems and in different countries;
  • Familiarization with the main theories of inflation and monetary equilibrium;
  • Understanding the correlation between inflation and economic and monetary variables;
  • Knowledge of key policies to control inflation and their mechanism of action.

8. Contents

8.1 Course / Teaching methods / Observations
Monetary equilibrium and inflation/deflation / Lecture / 1 lecture
Theoretical approaches regarding inflation/deflation / Lecture / 1 lecture
Measurement of inflation. Price indexes / Lecture / 1 lecture
Mechanism of inflationary process / Lecture / 1 lecture
Inflation and monetary systems. The evolution of inflation/deflation / Lecture / 1 lecture
Monetary inflation. Demand pull-inflation. / Lecture / 1 lecture
Cost-push inflation. Structural inflation. / Lecture / 1 lecture
Inertial inflation. Imported inflation / Lecture / 1 lecture
Inflation and unemployment. Phillips curve / Lecture / 1 lecture
Impact of inflation/deflation on macroeconomic environment / Lecture / 2 lectures
The relation between inflation and economic variables / Lecture / 1 lecture
Policies for combating inflation/deflation / Lecture / 2 lectures
References:
  1. Boyd J H., Champ B., Inflation, banking and economic growth, Federal Reserve Bank of Cleveland, 2005
  2. Carlstrom C. T., Fuerst T. M., Money growth and inflation: does fiscal policy matter?, Federal Reserve Bank of Cleveland, 1999
  3. Debelle G., 1999, Inflation targeting and output stabilisation, Research Discussion Paper 1999-08, Economic Analysis Department, Reserve Bank of Australia, 1999
  4. Dibooglu S. Inflation under the Bretton Woods system: the spillover effects of US expansionary policies, Atlantic Economic Journal, 1999
  5. Diewert E., Harmonized indexes of consumer prices: their conceptual foundations, Working Paper No. 130, ECB, March 2002
  6. Égert B., Drine I., Lommatzsch K., Rault C., The Balassa -Samuelson Effect in Central and Eastern Europe: Myth or Reality?,William Davidson Working Paper Number 483, July 2002
  7. Gavin W. T., Controlling inflation after Bretton Woods: an analysis based on policy objectives, The Federal Reserve Bank of St. Louis, Working Paper 2000-007A
  8. Gokal V., Hanif S., Relationship between inflation and economic growth, Reserve Bank of Fiji, Economics Department, Working Paper 2004/04
  9. Isărescu M., Spre o nouă strategie de politică monetară: ţintirea directă a inflaţiei. Ed. Universităţii Craiova, 2003
  10. Martellato D, Inflation and growth in Euro Zone, Department of Economics, Ca’ Foscari University of Venice, Working Paper No. 52/2006
  11. Masson P., Savastano M., Sharma S., 1998, Can Inflation Targeting Be a Framework for Monetary Policy in Developing Countries?, Finance & Development, 1998
  12. Mishkin F., Inflation targeting in emerging market countries, Working Paper 7618, National Bureau of Economic Research, 2000
  13. Pop Cohuţ I., Inflaţia în cea de-a doua jumătate a secolului XX, Ed. Economică, Bucureşti, 2005
  14. Rădulescu E., Inflaţia – marea provocare, Ed. Enciclopedică, 1999
  15. Rogers J. H., Wang P., High inflation: Causes and consequences, Economic Review, Fourth Quarter 1993

8.2 Seminar/laboratory / Teaching methods / Observations
Inflation and purchasing power / Practical applications / 1 seminar
Nominal and real financial variables / Practical applications / 1 seminar
Price indexes / Practical applications / 1 seminar
Correlations between inflation and macroeconomic variables / Practical applications / 1 seminar
Presentation of papers and projects / Students’ papers presentation / 3 seminars
References:
  1. Boyd J H., Champ B., Inflation, banking and economic growth, Federal Reserve Bank of Cleveland, 2005
  2. Carlstrom C. T., Fuerst T. M., Money growth and inflation: does fiscal policy matter?, Federal Reserve Bank of Cleveland, 1999
  3. Debelle G., 1999, Inflation targeting and output stabilisation, Research Discussion Paper 1999-08, Economic Analysis Department, Reserve Bank of Australia, 1999
  4. Dibooglu S. Inflation under the Bretton Woods system: the spillover effects of US expansionary policies, Atlantic Economic Journal, 1999
  5. Diewert E., Harmonized indexes of consumer prices: their conceptual foundations, Working Paper No. 130, ECB, March 2002
  6. Égert B., Drine I., Lommatzsch K., Rault C., The Balassa -Samuelson Effect in Central and Eastern Europe: Myth or Reality?,William Davidson Working Paper Number 483, July 2002
  7. Gavin W. T., Controlling inflation after Bretton Woods: an analysis based on policy objectives, The Federal Reserve Bank of St. Louis, Working Paper 2000-007A
  8. Gokal V., Hanif S., Relationship between inflation and economic growth, Reserve Bank of Fiji, Economics Department, Working Paper 2004/04
  9. Isărescu M., Spre o nouă strategie de politică monetară: ţintirea directă a inflaţiei. Ed. Universităţii Craiova, 2003
  10. Martellato D, Inflation and growth in Euro Zone, Department of Economics, Ca’ Foscari University of Venice, Working Paper No. 52/2006
  11. Masson P., Savastano M., Sharma S., 1998, Can Inflation Targeting Be a Framework for Monetary Policy in Developing Countries?, Finance & Development, 1998
  12. Mishkin F., Inflation targeting in emerging market countries, Working Paper 7618, National Bureau of Economic Research, 2000
  13. Pop Cohuţ I., Inflaţia în cea de-a doua jumătate a secolului XX, Ed. Economică, Bucureşti, 2005
  14. Rădulescu E., Inflaţia – marea provocare, Ed. Enciclopedică, 1999
  15. Rogers J. H., Wang P., High inflation: Causes and consequences, Economic Review, Fourth Quarter 1993

9. Corroboration / validation of the subject’s content in relation to the expectations coming from representatives of the epistemic community, of the professional associations and of the representative employers in the program’s field.

Learning and deepening inflation mechanism will provide a better understanding of its effects on economic and financial activity, which will be in advantage of entities in which the future economists will work. It will focus on the knowledge of how to measure inflation, on understanding the impact of inflation on macroeconomic environment and on the deepening relationship between inflation and economic and monetary variables. Analysis of the evolution of inflation, measuring its level, assessing its effects on the real and financial economy are practical aspects which will be acquired by graduates of this course through case studies carried out during the semester.

10. Assessment (examination)

Type of activity / 10.1 Assessment criteria / 10.2 Assessment methods / 10.3 Weight in the final grade
10.4 Course / Learning the basic aspects of inflation / Written exam during the regular exam session / 35%
Understanding of the inflation mechanism
Knowing the price indexes
Analysis of the causes of inflation and their connection with some form of inflation
Understanding correlations between inflation and economic variables
Learning policies to combat inflation
10.5 Seminar/laboratory / Learning and understanding of the issues being teach at course / Paper presentation – 30%
Written midterm exam from seminarpractical applications – 35% / 65%
Understanding the effect of inflation on purchasing power
Ability to work with price indices
Analysis of correlations between inflation and economic variables
Active involvement in solving the case studies and practical applications proposed in seminars
Active involvement in discussions on the papers presented by coleagues
10.6 Minimum performance standard
•It is necessary to obtain a minimum grade of 5 (five) in order to pass this subject;
•The grades being granted are between 1 (one) and 10 (ten);
•Students must approach each element (question, problem) within the exam sheet;
•The exam is written and takes approximately 90 minutes.

Date of fillingSignature of the course professorSignature of the seminar professor 02.03.2017 Assoc Prof. Beju Daniela Georgeta, PhD Assoc Prof. Beju Daniela Georgeta, PhD

Date of approval by the department Head of department’s signature

09.03.2017Professor Ciumaş Cristina Ph D

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NOTE: This document represents an informal translation performed by the faculty.