Economics of Monetary and Financial Policy MSc

 
  

Fact file

Qualification
MSc Economics of Monetary and Financial Policy
Duration
1 year full-time
Entry requirements
2:1 (upper second class honours degree or international equivalent) with significant economics content
Other requirements
In addition to language requirements, the School requires that all students wishing to pursue postgraduate taught courses have an adequate economics background. Specifically, for an MSc course the School requires an undergraduate qualification equivalent to a 2:1 from the University of Nottingham which includes significant economics content.
IELTS
6.5 (with no less than 6.0 in any element)

If these grades are not met, English preparatory courses are available
Start date
September
Campus
University Park
School/department
Tuition fees
You can find fee information on our fees table.
 

Overview

This course is taught by economists with substantial experience working with central banks, regulators and other financial institutions.
Read full overview

It is designed for students intending to prepare for an active career in a central bank or a regulatory authority overseeing financial markets and institutions, or who wish to gain experience of these institutions before working in the financial sector. It provides relevant preparation for work as an economist, supervisor or regulator in commercial and investment banks, credit rating agencies, pension companies and insurers, as well as in the public sector.

Unlike a typical economics MSc, this course includes core modules in consumer and firm behaviour, and the macroeconomic context for policymaking. It provides an introduction to monetary and financial policymaking, and hands-on data analysis modules with applications relevant to monetary and financial institutions.

Specialised modules refer to monetary economics and policy, economics of corporate finance, economics of household finance, and options are offered in macro-financial and general equilibrium (DSGE) modelling techniques used widely by central banks and regulators. These modules offer advanced understanding of institutions, policymaking bodies and techniques used to evaluate policies.

This course has close links with the Centre for Finance, Credit and Macroeconomics. Teaching is conducted by centre Fellows and draw on research published in the working paper series and internationally recognised peer-reviewed journals. It is further supported by a weekly seminar series, one-day conferences and regular public lectures.

Key facts

  • 6th in the UK for research power in the latest Research Excellence Framework
  • The school is in the top 100 worldwide for economics in the QS World University Rankings by Subject 2017
 

Course details

This course comprises 120 credits of core and optional modules, plus a 60-credit dissertation on a subject of your choice. You will receive one-to-one support from an expert academic supervisor, and methodological and practical guidance through our Economic Research Methodology module.

In semester one, you will take modules in macroprudential policy and financial conduct, macroeconomics, microeconomics and economic data analysis. In semester two, you will take two further required modules, including Monetary Theory and Policy and either Economics of Corporate Finance, or Economics of Household Finance. You will also start work on your dissertation by taking a module in economic research methodology, and choose two optional modules from a wide range.

After completing your semester two modules, you will undertake a 15,000-word supervised dissertation which will demonstrate familiarity with a particular area of monetary and financial policy.

Assessment

Modules are assessed by a combination of exams and coursework at the end of the relevant semester.

 
 

Modules

Core

Economic Data Analysis

Empirical testing and validation of economic theories is a crucial ingredient to policy-relevant research in economics. The Economic Data Analysis module provides students with the necessary tools and hands-on experience to employ econometric techniques to achieve this aim. The module includes lectures and computer labs which cover the analysis of cross-section and panel datasets (using Stata statistical software) as well as that of economic time series (using EViews), and is assessed by empirical coursework. No previous knowledge of these software packages is assumed, thus making EDA a crucial building block for students' supervised research projects on the MSc dissertation.

Economic Data Analysis is usually taught by Dr Markus Eberhardt, a co-author of Empirical Development Economics (Routledge 2014), and the author of a number of Stata routines for macro panel analysis. Dr Eberhardt's research focuses on productivity analysis at the macro level, including the development and application of novel empirical methods. He recently embarked on a three-year research project entitled under the ESRC's Future Research Leaders scheme.

 
Economic Research Methodology

The purpose of this module is to lead you into your dissertation and to provide ideas and advice as you embark on your research. Since each MSc dissertation must be an independent project with some degree of originality you should not expect that the ERM module will define narrowly what you should do, or how you should do it. The purposes are broader ones of orientation and reflection.

ERM is designed to help you take your first steps in the direction of independent research and to help you think through the strategy for developing and completing your research. More ambitiously, it aims to help you develop a more reflective and sophisticated approach to research, both as a consumer and (soon-to-be) producer of research! The module includes lectures on how to approach your dissertation, how to undertake applied economic research, what methods to use, and asks what constitutes "good" research? The module is assessed by a written assignment, in which you will review a key paper related to your dissertation topic.

 
Macroeconomics: Economic Cycles, Frictions and Policy

The purpose of this course is to consider a number of key areas in macroeconomics which are important both for model-building and policy analysis. We seek to provide a solid microeconomic foundation of macroeconomic analysis and will emphasize quantitative implications of the models presented. We will examine various fundamental issues and how they have been approached and interpreted by the literature over time. In so doing, we will keep a critical eye and highlight the policy implications.

Macroeconomics is usually taught by Dr Alejandro Riaño. Dr Riaño’s current research explores how individuals and firms adjust to globalisation. Dr Riaño has published in the Oxford Bulletin of Economics and Statistics, the World Bank Economic Review and the Review of World Economics.

 
Microeconomics: Consumers, Firms and Markets

This module provides students with the basic theoretical tools of microeconomics which form the starting point for any applied economic analysis, including the analysis of policy. The module covers topics including consumer choice, risk and uncertainty, game theory, oligopoly and asymmetric information.

Microeconomics is usually taught by Dr Maria Montero. Dr Montero's research interests lie in the field of Game Theory (cooperative, non-cooperative and behavioural). Recent research has focused on weighted majority voting and on theoretical models of bargaining with social preferences.

 
Macroprudential Policy and Financial Conduct

Introduces a series of topics about macroprudential policy and financial conduct, including:

  • introduction to macroprudential policy
  • interaction with monetary policy
  • introduction to financial conduct policy
  • market manipulation
  • financial reporting and supervision
  • trust and the fair treatment of consumers
 
Monetary Theory and Policy

The aim of this module is to address the major developments in macroeconomics with an emphasis on monetary economics. The module covers the theory and practice of central banking and monetary transmission. Topics covered include: central bank policy; reputation; solutions to the inflation bias problem; targets for monetary policy; quantitative easing and ultra-low interest rates.

Monetary Theory and Practice is usually taught by Paul Mizen, Professor of Monetary Economics and Director of the Centre for Finance and Credit Markets. He has relevant experience for teaching this module from the Federal Reserve, Bank of England, Deutsche Bundesbank, the European Central Bank, the Bank for International Settlements and the International Monetary Fund. He has published six books and over 100 articles on monetary economics including the Economic Journal, European Economic Review, Journal of Money, Credit, and Banking, Journal of Banking and Finance, Oxford Economic Papers and Economics Letters.

 
MSc Dissertation: Economics

The module comprises of a period of student research and study, designed to allow students to demonstrate familiarity with a particular area of economic theory or policy, or of applied economics or econometrics, and the ability to apply a specific analytical and/or empirical technique. All MSc students receive 'one-to-one' supervision for their dissertation. Their supervisor will be a research-active member of the academic staff who can provide genuinely expert guidance.

 

One of:

Economics of Corporate Finance

This module provides an overview of the corporate finance literature, with a particular focus on the sources of market frictions that can account for the presence of financial constraints. The module attempts to provide answers to fundamental questions such as: Why do we need debt? Why do we need corporate governance? Why do we need banks?

Economics of Corporate Finance is usually taught by Professor Spiros Bougheas, who has taught related modules at The University of Nottingham for over ten years. His research focuses on the impact of financial constraints on firms and international trade; financial panics; systemic risk in banking, systemic risk and the real economy. His publications include papers in the Journal of International Economics, the Journal of Population Economics, the Canadian Journal of Economics and the Journal of Macroeconomics.

 
Economics of Household Finance

The module covers the central issues in the economics of household finance. Household finance is the study of the behaviour of individuals and households in financial markets including those for secured (eg mortgages) and unsecured (eg credit cards) lending and related economic models of consumption smoothing, liquidity constraints and household behaviour. The module begins with the central topic of consumption smoothing, focusing on the role of credit markets and income risk in household behaviour. Later topics include financial literacy, self-control, mortgage market design, stock market participation and the regulation of consumer credit markets.

Economics of Household Finance is usually taught by Dr John Gathergood. Dr Gathergood's research considers many issues relating to personal finance, and has published in the Economic Journal, the Journal of the European Economic Association and the Journal of Banking and Finance.

 

Optional

Two from:

Advanced Macroeconomic Theory

This module covers the solution, calibration and simulation of dynamic stochastic models (DSGE) that are widely used in all fields of macroeconomics. It is structured in such a way that students will be exposed both to theory and the practical implementation of the methods taught. The focus is on the application of these techniques to contemporary general equilibrium macroeconomic models, designed for policy analysis. Such models have become the standard framework for the analysis of business cycle fluctuations and monetary policy in central banks and policy institutions.

We will first study these models in their simplest form and then, we will extend it to introduce nominal rigidities and financial frictions. Finally we will touch upon topics that are at the frontier of research such as financial stability and macroprudential policies, in the context of DSGE models. This course is of particular interest for those who wish to work at a central bank or an international institution, or who want to do research on applied macroeconomics. Many students taking this course have afterwards used the methods and techniques acquired to write their MSc and PhD dissertations and have gone onto jobs and internships at institutions such as the ECB and other central banks.

Advanced Macroeconomic Theory is usually taught by Dr Margarita Rubio, who has taught this module at a Master and PhD levels at The University of Nottingham, the University of Konstanz, as well as in Central Banks on demand. She has collaborated in the building of DSGE models in several central banks and institutions (International Monetary Fund, Bank of Spain, Central Bank of Luxembourg, Central Bank of Costa Rica, Bank of Lithuania). She has also published several articles using a DSGE framework in highly ranked journals such as the Journal of Money Credit and Banking, Journal of International Money and Finance and Journal of Banking and Finance.

 
International Macroeconomics

The module will teach you the theoretical foundations of open-economy dynamic general equilibrium (DGE) models. We first discuss the key seminal contribution of Obstfeld and Rogoff (OR, 1995). In particular, we will carefully learn the roles of key features of their model such as monopolistic competition and nominal rigidities in the effects of monetary and fiscal policy in an international context. We then move on to discussing subsequent works in the literature, including Corsetti and Pesenti (2001), Betts and Devereux (BD, 2000), and Ganelli (2010), which are all closely related to the Obstfeld and Rogoff model. Even students who are not interested in open-economy aspects of macro models, will still develop strong intuition which can be applied to DGE models in general.

International Macroeconomics is usually taught by Dr Yoshi Morozumi, whose research interests are in macroeconomic and monetary theory. Specifically, he studies the role of credit market imperfections in business cycle dynamics. He has been an Assistant Professor in the School of Economics since 2009, and has also been a visiting scholar at the International Monetary Fund.

 
Advanced Microeconomic Theory

The aim of this module is to show you various important models taken from modern microeconomic theory. Topics covered include the economics of auctions, matching, voting, incentives and contracts. Although the treatment is theoretical, these topics have important practical applications, such as how to assign kidneys from donors to patients, how to make a decision as a group, and so on.

Advanced Microeconomic Theory is usually taught by Dr Mariá García-Vega. Dr García-Vega's research focuses on international economics, research and development, globalisation and the economics of innovation.

 
Behavioural Economic Theory

This module studies ways in which economic behaviour differs from that assumed in standard economic theory. Behavioural economic theory attempts to unify psychological and economic models of behaviour. This module looks at alternatives to expected utility theory, exponential discounting, and the standard models of forward-planning. Behavioural economic theory is relevant to a wide-range of economic decisions, and is still a relatively new and emerging field.

Behavioural Economic Theory is usually taught by Professor Robin Cubitt and Dr Daniele Nozenzo. Professor Cubitt is Professor of Economics and Decision Research. His research studies individual and interactive decision-making, using theoretical and experimental techniques. Dr Nosenzo is Co-Director of the Centre for Decision Research and Experimental Economics (CeDEx). His main research interests are in the areas of behavioural and experimental economics, and he is particularly interested in topics such a social norm compliance and the study of positive and negative incentives. Both have published widely in the leading economics and economic psychology journals.

 
Experimental Methods in Economics

Experimental economics provides tools for observing human behaviour under controlled conditions. Using these tools, we can test theory, inform policy and measure behaviour. This module will show you how and why experiments are used in economics, how to design and analyse your own experiments and allow you to develop skills for critically assessing experimental designs and results. Part of the module assessment includes a project in which you design and run your own experiment.

Experimental Methods in Economics is usually taught by Professor Chris Starmer and Dr Elke Renner. Professor Starmer is Professor of Experimental Economics and the Director of the Centre for Decision Research and Experimental Economics (CeDEx) and Director of the ESRC Network for Integrated Behaviour Science (NIBS). His main research interests are in individual and strategic decision making, experimental economics and the methodology of economics, and has published widely in the leading economics and economic psychology journals. Dr Renner's research interests lie in the area of behavioural and experimental economics, game theory and organisation theory. Her work on the design of efficient economic organisations has focused on microfinance institutions and corruption behaviour. Current projects include cooperation problems and leadership. She has published in journals including Science, Journal of Public Economics, and Journal of Economic Behavior and Organization.

 
Industrial Organisation

This module covers both theoretical and experimental research on a number of Industrial Organisation topics. Rather than give a broad overview of the field the module focuses on a few topics in depth. Examples of topics covered in previous years are: dynamic oligopoly models, models of endogenous commitment, price competition with consumer inertia, anti-trust leniency policies. Lectures are organised around two or three key readings, usually recently published research papers, and cover necessary theoretical background for a detailed discussion of the key readings. As part of the module students also give group presentations on an assigned paper. Thus, the module develops an understanding of research methods and skills applied to questions in Industrial Organisation.

Industrial Organisation is usually taught by Professor Martin Sefton and Dr Danielle Nosenzo. Professor Sefton has research interests in the area of game theory and experimental economics. He has published in leading journals and is on the editorial board of the journal Experimental Economics. Dr Nosenzo's main research interests are in the areas of behavioural and experimental economics, and he is particularly interested in topics such as social norm compliance and the study of positive and negative incentives. He has published a range of papers including articles in the Journal of the European Economic Association, Journal of Law, Economics, and Organization, and the Journal of Public Economics.

 
Financial and Macroeconometrics

This is an applied econometrics module which covers time-series methods through the study of selected topics in finance and macroeconomics. It develops the techniques necessary to be able to read, critically evaluate and replicate published academic papers involving econometric analysis in macroeconomics and finance.

Financial and Macro-econometrics is usually taught by Professor Kevin Lee. Professor Lee has taught and researched in UK universities for over 25 years. He has completed research projects valuing in excess of £1.5m in the areas of macroeconomics and applied econometrics and has published in journals including the Economic Journal, Journal of American Statistical Association, Journal of Applied Econometrics, Journal of Business and Economic Statistics, Journal of Econometrics, Quarterly Journal of Economics and Review of Economics and Statistics.

 
Public Economics

The aim of the module is to provide students with the tools required for the analysis of public decision making. We will consider public economic intervention both in terms of normative and positive analysis. Measurement issues underlying distributional problems will be discussed in detail. The module will treat both taxation (optimal taxes) and expenditure (public good) issues. Attention will be paid to some of the most important recent contributions. The module will concentrate on theoretical contributions to public economics. It is suitable for students without a strong theory background interested in approaching formally theoretical analysis. Also students familiar with microeconomic theory will find it useful and will have an opportunity to apply analytical tools acquired in Micro Theory as well as to familiarise with some new tools.

Public Economics is usually taught by Professor Gianni De Fraja. Professor De Fraja has published widely in the area of public economics and economic theory, including publications in Review of Economics and Statistics, International Economic Review, Journal of Public Economics and Journal of Economic Behaviour and Organization.

 
Economic Growth in Theory and Practice

Why are some countries poor and others rich? Why have some countries, such as South Korea, managed to move from low-income to high-income status in the course of a mere 30 or 40 years? Questions such as these are not just of interest to development economists but arguably represent some of the most important questions in our world today. This module provides a unique approach to find answers to these questions. It combines both theory and empirics. Students taking this module are given the theoretical foundations to motivate their regression specifications as well as gaining insights into how to approach rigorous empirical testing of their theoretical predictions. This module thus should appeal to those students who want to pursue cross-country growth empirics or theoretical modelling of growth and development in their masters thesis projects.

Economic Growth in Theory and Practice is usually taught by Dr Markus Eberhardt and Dr Roberto Bonfatti. Dr Eberhardt's research focuses on productivity analysis at the macro level, including the development and application of novel empirical methods. He recently embarked on a three-year research project entitled under theESRC's Future Research Leaders scheme. Dr Bonfatti's research lies at the intersection of international trade, political economy, and economic history, and has published in the Journal of International Economics and the Canadian Journal of Economics.

 
International Trade Theory

The key objective of this module is to describe the nature of trade, its causes and its effects on welfare. We will discuss the gains from trade and their measurement, different causal explanations for trade (comparative advantage from technological differences, comparative advantage from endowment differences, increasing returns to scale internal and external to the firm in the presence of firm heterogeneity), determinants of the pattern of trade, trade's effect on factor rewards. The emphasis in this section of the course is on explaining why countries trade and what are the effects of trade on wages, prices, and production patterns. Particular attention will be devoted to study the effects of globalization on unemployment, inequality, and growth.

International Trade Theory is usually taught by Dr Giamarrio Impulliti, whose research focuses on two major sreas. The first studies the effects of globalization on growth and on labour market outcomes, such as unemployment and income inequality. The second line of research zeros in on the role of innovation policy in promoting growth and development. He has published in top international journals such as the Journal of International Economics, International Economic Review, Journal of the European Economic Association, and the Review of Economics and Statistics.

 
Trade Analysis and Policy

This module has an empirical and applied focus, and aims to show how the tools of trade theory and trade policy analysis can: explain and model trade flows; test trade theories; investigate the effects of trade flows; measure and model trade policy interventions and understand the impacts of trade policies.

Trade Analysis and Policy is usually taught by Dr Alejandro Riaño and Dr Mariá García-Vega. Dr Riaño's research focuses on firm-level adjustment to globalisation and its aggregate implications. Currently he works on quantifying the impact of trade liberalisation on firm-level technology adoption and its implications for wage inequality, understanding how exporting affects firm-level sales volatility and exploring the labour market impact of offshoring in developing countries. Dr García-Vega's research focuses on international economics, research and development, globalisation and the economics of innovation.

 
Applied Behavioural Economics

Behavioural economics considers the ways in which the behaviour of real people differs systematically from the standard economic models of human behaviour. This module focuses on various applied aspects of behavioural economics, and includes topics such as consumer behaviour, the behaviour of organisations, behavioural development economics and behavioural environmental economics.

Applied Behavioural Economics is usually taught by Dr Abigail Barr and Dr Elke Renner. Dr Barr's research focuses on the socially embedded decision-maker. She has designed and implemented a variety of lab and lab-type experiments involving students in several countries, villagers in Zimbabwe, Colombia, Uganda, Nigeria, and Sri Lanka, private-sector waged workers and unemployed people in the UK, Chile, Peru, Ghana, South Africa, and Spain and health workers and teachers in Ethiopia, Uganda, and Albania. Four themes have dominated her work to date: the role of other-regarding preferences in individual decision-making; how people set up and hold each other to mutually beneficial agreements; citizens' willingness and ability to hold public service providers to account; and the factors and mechanisms determining individual preferences and values.

Dr Renner's research interests lie in the area of behavioural and experimental economics, game theory and organisation theory. Her work on the design of efficient economic organisations has focused on microfinance institutions and corruption behaviour. Current projects include cooperation problems and leadership. She has published in journals including Science, Journal of Public Economics, and Journal of Economic Behavior and Organization.

 
Development Policy Analysis

This module considers various policy issues for development. Topics covered include education policy, conducting randomised controlled trials, the effects of aid, trade costs and export barriers, migration and the "brain-drain". The aims of the module are to familiarise students with a range of techniques for development policy analysis; provide a review of analytical methods, policy and practice in important areas of economic policy in developing countries; provide experience in presenting economic policy analysis through interactive group seminars.

Development Policy Analysis is usually taught by Professor Oliver Morrissey, Professor Chris Milner and Dr Simon Appleton. All three have a wealth of experience of "hands-on" analysis of developing countries, including advising governments in Africa and the Caribbean.

 
Development Microeconomics

Development microeconomics considers vital issues such as absolute poverty, famine and malnutrition, preventable disease and wasted lives. There have been dramatic global changes which we will consider in this module, such as the rise of China and India and the marginalisation and (perhaps) recovery of African countries. We will consider various topics relating to development economics in this module, including risk and insurance, migration, population and fertility, poverty, health and nutrition.

Development Microeconomics is usually taught by Dr Simon Appleton. Dr Appleton's research interests lie primarily in the areas of poverty, labour markets, health and education, with application to China and sub-Saharan Africa. He is a research associate of the Centre for the Study of African Economies, Oxford, and a member of the editorial boards of the Journal of African Economies, the Journal of Development Studies and African Development Review. He has published in a range of journals including Economic Development and Cultural Change, the Journal of African Economies, the Journal of International Development, and the Oxford Bulletin of Economics and Statistics.

 

 

The modules we offer are inspired by the research interests of our staff and as a result may change for reasons of, for example, research developments or legislation changes. This list is an example of typical modules we offer, not a definitive list.

 
 

Funding

Funding information is available on the school website and can also be found on the Graduate School website.

International and EU students

The University of Nottingham offers a range of masters scholarships for international and EU students from a wide variety of countries and areas of study.

Applicants must receive an offer of study before applying for our scholarships. Please note the closing dates of any scholarships you are interested in and make sure you submit your masters course application in good time so that you have the opportunity to apply for them.

The International Office also provides information and advice for international and EU students on financing your degree, living costs, external sources of funding and working during your studies.

Find out more on our scholarships, fees and finance webpages for international applicants.

 
 

Careers

This course provides excellent preparation for work as an economist, supervisor or regulator in the Bank of England, the Prudential Regulation Authority, the Financial Conduct Authority, or in the private sector in commercial and investment banks, credit rating agencies, pension companies and insurers. Equivalent organisations and firms exist in most countries, and the course has been designed to refer to a broader set of institutions around the world.

Nottingham economics postgraduates are spread around the globe, working in academia, government and the private sector. Our courses provide specialist skills in theoretical and empirical economics, which are sought-after by employers.

Employability and average starting salary

90% of postgraduates from the School of Economics who were available for employment secured work or further study within six months of graduation. £29,500 was the average starting salary, with the highest being £32,000.*

* Known destinations of full-time home postgraduates 2015/16. Salaries are calculated based on the median of those in full-time paid employment within the UK.

Career and professional development

Whether you are looking to enhance your career prospects or develop your knowledge, a postgraduate degree from the University of Nottingham can help take you where you want to be.

Our award-winning Careers and Employability Service offers specialist support and guidance while you study and for life after you graduate. They will help you explore and plan your next career move, through regular events, employer-led skills sessions, placement opportunities and one-to-one discussions.

 
 
 
Explore it - Virtual Nottingham

Disclaimer
This online prospectus has been drafted in advance of the academic year to which it applies. Every effort has been made to ensure that the information is accurate at the time of publishing, but changes (for example to course content) are likely to occur given the interval between publishing and commencement of the course. It is therefore very important to check this website for any updates before you apply for the course where there has been an interval between you reading this website and applying.

Get in touch
+44 (0)115 951 5559
Make an enquiry

Contact

School of Economics
Sir Clive Granger Building
The University of Nottingham
University Park
Nottingham
NG7 2RD
Social Science videos

Social Science videos

 
 

Student Recruitment Enquiries Centre

The University of Nottingham
King's Meadow Campus
Lenton Lane
Nottingham, NG7 2NR

t: +44 (0) 115 951 5559
f: +44 (0) 115 951 5812
w: Frequently asked questions
Make an enquiry