Economics of financial markets and monetary institutions. We study how the interest rates and asset prices are determined, how the banking system operates, and how central banks use the policy tools to influence output and inflation. Further, students should be familiar with real-world knowledge regarding. Upon successful completion of this course, you will be able to: 1. use micro-founded models to analyze macro data. 2. understand the effect of monetary policies on different sectors of the economy. 3. apply the material learned to evaluate the effects and merits of alternative policies. central ban