Monetary Economics

1. Interest Rates
   1. Determination of Interest Rates
      1. Supply and demand for funds
         1. Role of savings and investments
         2. Impact of government borrowing
         3. Global capital flows
      2. Monetary policy influences
         1. Central bank interest rate settings
         2. Use of interest rates as a policy tool
      3. Market dynamics
         1. Role of financial intermediaries
         2. Influence of credit risk and liquidity
      4. Role of inflation expectations
   2. Yield Curve and Term Structure of Interest Rates
      1. Definition and components of the yield curve
         1. Short-term versus long-term interest rates
      2. Theories explaining the term structure
         1. Expectations theory
         2. Liquidity preference theory
         3. Market segmentation theory
      3. Interpretation of the yield curve
         1. Economic growth indicators
         2. Recession predictors
      4. Factors affecting the yield curve
         1. Central bank actions
         2. Market expectations and economic outlook
   3. Real vs. Nominal Interest Rates
      1. Definitions
         1. Nominal interest rate
         2. Real interest rate
      2. Adjustment for inflation
         1. Fisher equation
      3. Implications for borrowers and lenders
         1. Purchasing power considerations
         2. Contract stipulations based on real/nominal rates
   4. Effects on Investment and Consumption
      1. Sensitivity of investment to interest rates
         1. Cost of borrowing and capital investments
         2. Influence on business expansion decisions
      2. Impact on consumer spending
         1. Interest rate influence on consumer credit
         2. Savings versus consumption decisions
      3. Housing and real estate markets
         1. Mortgage rates impact
         2. Property investment attractiveness
   5. Interest Rate Policies
      1. Historical context of interest rate setting
         1. Evolution over economic cycles
         2. Case studies of past rate adjustments
      2. Contemporary interest rate policies
         1. Role of unconventional monetary policy
            1. Zero lower bound challenges
            2. Negative interest rate policies
      3. Interaction with fiscal policy
         1. Coordinating fiscal and monetary strategies
   6. Global Perspective on Interest Rates
      1. Comparison between developed and emerging markets
         1. Different rate determinants
         2. Influence of global economic conditions
      2. International capital flows and interest rate parity
         1. Covered and uncovered interest rate parity theory
      3. Effects of globalization on interest rate dynamics
   7. Challenges in Interest Rate Management
      1. Balancing inflation and employment goals
      2. Addressing financial market stability
         1. Interest rate impact on asset bubbles
      3. Communication and market expectations
         1. Importance of transparency in central bank rate decisions
   8. Role of Expectations in Interest Rate Setting
      1. Managing market reactions
      2. Forward guidance strategies
      3. Influence on future monetary policy outcomes