SYLLABUS

AD312 MONEY & BANKING

SPRING - 2023
Instructor: Prof. Metin Ercan
Email: mercan@boun.edu.tr
Assistant: yagiz.elver@boun.edu.tr

CONTENT

1. Turkish Economy by Figures.

a) League of Economic Powers by GDP

b) Economic Development and Productivity (Human Development Index)
c) Global Competitiveness Index
d) Total Factor Productivity (TFP)
e) Endogenous Growth and TFP
f) TFP and Saving-Investment Gap
g) ‘Middle Income Growth Trap’ revisited
h) Public Budgetary Payments of Turkey
i) Gross External Debt Stock of Turkey
j) Gross and Net Foreign Currency Reserves of Turkey
k) Key Metrics from Turkish Banking System
l) Free Float for Various BIST Indexes
m) Credit Ratings of Turkey
n) Credit Default Swaps (CDS) of Turkey and various countries
o) Imports of Turkey by Product Groups
p) CPI-Based Real Effective Exchange Rates

2. Globalization and Global Value Chains

3.
a) Creation of money by the central bank, open market operations, creation of money by
banks, money multipliers and monetary aggregates M1, M2, M2

4.
a) The external sector, flows and stocks of foreign exchange, the balance of payments,
international reserves and external debt
b) Theories of exchange rate determination, purchasing power parity, real exchange rate, the
interest rate differential
c) Inflation stabilization

5.
a) Fiscal policy, the government budget and its financing problems, the total public sector
borrowing requirement
b) The domestic and external debt, and its dynamics, issues of sustainability

6.
a) Unregistered economy

1
Course Material:

- Handout and supplementary material to be distributed via Moodle

- Ercan. M. 2015. Türkiye Küresel Büyüme Modeli: Küresel Ekonomik Statükoya Teslim
Olmamak için Finans Kaynağı Önerileri. İstanbul, Turkey: Boğaziçi Üniversitesi
Yayınları

ASSIGNMENTS
Assignment 1 (Deadline: 10th of March 2023, 17:00 UTC+3): Prepare and submit
macroeconomic indicators listed below for the last 5 years of France, USA, Japan, Germany, UK,
Turkey and China:
- GDP (Gross Domestic Product) and GNP (Gross National Product) (Current prices, Real
and PPP [Purchasing Power Parity]),
- GNP growth rates (Current Prices, Real and PPP),
- Nominal interest rates,
- Inflation rates,
- Real interest rates,
- European Central Bank (ECB) and Federal Reserve Bank (FED) Policy Interest Rates,
- Current Account Balances,
- Foreign Trade Balances,
- Savings rates and rankings of the country’s economy in terms of real basis and
Purchasing Power Parity
- Values and rankings of WEF (World Economic Forum) Competitiveness Index for the
above selected countries.
Assignment 2 (Deadline: 31st of March 2023, 17:00 UTC+3):
- Determine the amount of physical US Dollar circulating in the world,
- List the top five most traded currencies
- Find the total amount of gold holdings of Central Banks in the world,
- Find the amount of gold supply and price of gold over the past 20 years.
- List the biggest holders of USD
Assignment 3 (Deadline: 21st of April 2022, 17:00 UTC+3): Prepare a datasheet containing
information about following taxes in France, USA, Japan, Germany, UK, Turkey, China and
Venezuela:
- Calculate Market Cap and Free Float for the 20 most valuable publicly listed companies
of USA, Germany, Japan and Turkey
- Find the Top 20 most valuable companies in the world for the years 2019; 2009 and 1999
and categorize them based on the industries they operate
- Corporate Income Tax for firms (
- Income tax brackets
- VAT,
- Withholding Tax

Assignment 4(Deadline: Exam date to be announced for the class, 17:00 UTC+3): Write a
comprehensive essay/summary (with a length between 300-500 words) on any article in economy
about any country, or major event. Try using the statistics that you found throughout the semester
as a basis for your claims.

2
 RULES
- Fail to deliver more than 2 of the assignments then you are out*!
- Plagiarize on your Assignment 4, then you are out*!
- You shall submit your assignment papers via Moodle.

*This means you won’t be able to pass the class.

STYLE REQUIREMENTS FOR ASSIGNMENT 4

- You shall use APA Format for your citations. (Further information about APA Citation
Standards; https://www.mendeley.com/guides/apa-citation-guide)

GRADING
- Assignments – 25%
- Midterm exam – 25%
- Final exam – 50%