Binalonan, Pangasinan

1st Semester A.Y. 2024-2025

College of Business Education

OBTL SYLLABI
Monetary Policy and Central Banking

KRISTOPHER RYAN C. DE VERA, MBA

Faculty, CBE
Vision: Mission:
University of Eastern Pangasinan is the best holistic higher institution University of Eastern Pangasinan exists to develop highly competent
 known to cultivate excellent and virtuous individuals to become catalyst of professionals and morally responsible individuals through innovations and
progress and development for both the local and the global communities industry oriented instruction, strong relevant research, responsive extension
programs, value-based curricular offering and principle-centered culture that
define the way of life in the university.
Institutional Outcomes: Program Outcomes:
The graduates of University of Eastern Pangasinan should be able to: A graduate of business administration degree should be able to:
1. Critically analyze and solve problems in order to render sound 1. Implement strategic decisions within the firm in order to solve problems.
decisions.
2. Utilize new technologies to produce appropriate and noble ideas, products
2. Generate new knowledge and produce scholarly works contributory and services.
to the advancement of their profession and sustainable
development. 3. Demonstrate a high sense of professionalism in performing the basic
functions of business.
3. Practice their respective professions efficiently and effectively.
4. Prepare tactical and operational plans for quality planning, monitoring and
4. Build relationships among individuals and promote camaraderie
implementation.
and teamwork in the working environment.
5. Manage all work-related problems concerning colleagues, customers and
5. Express themselves exemplarily in both oral and written
other stakeholders.
communication.
6. Demonstrate and uphold moral values and standards of the 6. Communicate effectively to all levels of management for the planning and
society. implementing business-related activities.

7. Promote and preserve the historical and cultural Filipino heritage. 7. Implement the core functions of the strategic business unit for economic
sustainability.
8. Exercise good moral, personal and ethical standards to business, society
and the government.
9. Practice Filipino values at home and at work.
I. Course Description:
This course explores the objectives and functions of central banks and monetary policies, including their historical evolution. Students will learn about
monetary policy tools, central bank regulations, and inflation targets. By the end of the course, students will understand the impact of key policy tools, how
central banks influence the financial system and broader economy, and their role in recent financial crises.

II. Course Outcomes:

Through different topics included in this course, students are expected to:
1. Develop technical and analytical skills by applying various concepts, principles, and processes of the monetary system. Use these skills to
demonstrate critical thinking, problem-solving, and make sound financial decisions.
2. Show in-depth knowledge and analysis of trends, issues, and paradigm shifts in the Philippine Banking System, the Federal Reserve System, the
European Central Bank, and the global banking industry.
3. Exhibit social awareness and responsibility by evaluating the effectiveness and relevance of public finance and understanding the underlying trends
and problems.
4. Engage in thorough individual study and collaborate effectively with others in both formal and informal learning teams.

III. No. of Units: 3

IV. Course Prerequisite: None
V. Course Outline:
Learning No. of Intended Learning Learning Content Mode of Delivery Teaching/ Assessment Activity
Delivery Hours Learning Activity
Outcome (ILO) Flexible Learning
Schedule
Model
(Face-to-face/
Synchronous/
Asynchronous)
Week 6 By the end of this session; a. Course SYNCHRONOUS Content Discussion on Students will write an
Orientation, the following; essay analyzing a
1&2 a. Identify and explain
Classroom Rules, recent central bank
the fundamental a. Overview of
Grading System Interactive Discussion policy decision,
concepts and Monetary Policy
exploring its
objectives of b. Introduction to
 monetary policy and Monetary Policy and b. Central Banking objectives,
central banking, Central Banking Fundamentals implementation, and
including interest economic impacts.
a. Overview of c. Monetary Policy
rates, money supply, ASYNCHRONOUS The essay should
Monetary Tools
and inflation control. discuss the rationale
Policy
d. Policy behind the policy,
b. Describe and
b. Central Case Study Review - Formulation and assess its
evaluate the tools
Banking Review a case study on Implementation effectiveness in
and mechanisms
Fundamentals a historical or recent achieving monetary
used by central e. Economic
monetary policy goals, and evaluate its
banks to implement c. Monetary Indicators and
decision. Prepare a broader implications
monetary policy, Policy Tools Monetary Policy for economic stability
such as open market brief analysis that
d. Policy includes the context, f. International and growth. Students
operations, discount
rates, and reserve Formulation decisions made, and Monetary Policy should support their
and outcomes. Submit your analysis with relevant
requirements.
Implementation analysis and provide examples and data.
c. Assess the impact of feedback on peer They should refer to
monetary policy e. Economic the rubric to ensure
submissions.
decisions on the Indicators and their essay meets all
economy, including Monetary criteria for clarity,
effects on inflation, Policy depth, and analytical
employment, and f. International rigor.
economic growth, Monetary
using real-world Policy
examples and case
studies.
Week 3 3 At the end of the discussion Money and the Role SYNCHRONOUS Content Students will write an
students will able to; of Money in the essay examining the
Economy Discussion on
a. Explain the role of money in
fundamental a. Concept and Socialized Discussion economic
functions of money, Functions of transactions, its types,
Money a. Concept and and its impact on
including its roles as
Functions of
a medium of b. Types of ASYNCHRONOUS inflation and economic
Money
exchange, unit of Money growth. The essay
b. Types of Money should include an
account, store of c. Money Supply
 value, and standard and Video Analysis and c. Money Supply analysis of how money
of deferred payment. Measurement Report and facilitates trade, the
d. Role of Money Measurement effects of monetary
b. Assess how changes -Watch a series of
in Economic d. Role of Money policy on economic
in the money supply videos explaining the
Transactions in Economic stability, and a review
influence economic functions of money, Transactions
e. Money and of a relevant case
variables such as types of money, and
Inflation e. Money and study. Students should
inflation, interest the relationship
f. Monetary Inflation use the rubric to
rates, and economic between money supply
Policy and Its f. Monetary Policy ensure their essay
growth. and inflation. Write a
Impact and Its Impact meets all standards for
report summarizing the
c. Examine how g. Global g. Global clarity, depth, and
key points and
monetary policy Perspectives Perspectives on insight.
discussing how money
decisions, including on Money Money
influences economic
changes in interest
transactions and
rates and money
stability. Think, pair, share
supply, affect overall
economic stability
and individual
financial behavior. Brainstorming

Week 4 3 At the end of the session, Financial Systems, SYNCHRONOUS Content Discussion on
students should be able to; Institution, Market, the following; Students will engage
Tools, Services. in a case simulation
a. Explain the structure a. Financial where they manage a
Interactive Discussion
and functions of a. Financial Systems virtual financial
financial systems Systems Overview institution, make
and institutions, Overview strategic decisions,
ASYNCHRONOUS b. Financial
including the roles of b. Financial Institutions,l and respond to
commercial banks, Institutions,l Markets, Tools simulated market
investment Markets, Tools and Services conditions. The activity
Case Study Analysis
institutions, and and Services includes, Simulation
regulatory bodies. -Review a case study c. Financial Participation,
c. Financial related to a financial Regulation and Decision
b. Describe and assess Regulation and Policy
institution or market Justification,
various financial Policy event. Prepare a brief d. Global Financial Outcome Analysis
markets and tools,
analysis discussing the and creating
such as stock
 markets, bonds, and d. Global case’s implications for System
derivatives, and their Financial financial systems and Reflection.
impact on investment System services, and how it
and financing reflects the functioning Students should refer
decisions. of financial tools and to the rubric to ensure
markets. their reports are well
c. Examine the range organized, insightful,
of financial services and demonstrate a
offered by thorough
institutions, including understanding of
banking, investment financial systems and
management, and management
insurance, and principles.
evaluate their
importance for
personal and
business financial
planning.
Week 5 By the end of the session, Interest rates, SYNCHRONOUS Content Discussion on Solve a series of
student should be able to exchange rates and the following; problems related to
Monetary and calculating simple and
a. Interest Rates
Financial Socialized Discussion compound interest, as
a. Explain the concepts Institutions b. Exchange well as converting
of interest rates and Rates between different
a. Interest Rates
exchange rates, ASYNCHRONOUS currencies using given
c. Monetary exchange rates.
including their b. Exchange
Institutions Provide detailed steps
determinants and the Rates
relationship between Video Analysis and d. Monetary Policy and explanations for
c. Monetary each calculation.
them, and how they Report
Institutions
affect economic
-Watch a series of Given specific
activity and financial d. Monetary Brainstorming
videos explaining scenarios involving
markets. Policy
interest rates, changes in interest
b. Describe the exchange rates, and rates or exchange
functions and Think, pair, share rates, compute the
the role of monetary
objectives of and financial impact on financial
 monetary and institutions. Write a outcomes such as
financial institutions, report summarizing key loan payments,
including central concepts, including investment returns, or
banks, commercial how interest and currency conversion.
banks, and exchange rates are Include a brief
regulatory bodies, determined, and the explanation of the
and analyze their impact of monetary calculations and their
impact on interest institutions on these significance.
rates, exchange rates..
rates, and overall
economic stability.
c. Assess how
monetary and
financial policies,
including interest
rate adjustments and
exchange rate
interventions,
influence economic
conditions such as
inflation, investment,
and international
trade.
Week 6 1 PRELIM EXAMINATION

Week 7 By the end of the session, Conducting SYNCHRONOUS Content Discussion on

students should be able to; Monetary Policy: the the following; Students will complete
money supply an assessment that
a. Explain the process and involves analyzing the
Interactive Discussion
mechanisms through economic relationship between
a. The money
which central banks stabilization monetary policy, the
multiplier
control the money a. The money money supply
supply and how ASYNCHRONOUS
multiplier b. The monetary process, and
these mechanisms base and economic stabilization.
influence economic b. The monetary money supply The activity includes
activity. base and Discussion Forum
 b. Identify and describe money supply -Participate in an online c. Operational
the tools used by discussion by posting policy at the Scenario-Based,
c. Operational Calculations, Policy
central banks to your thoughts on a ECB and the
policy at the Evaluation and create
implement monetary recent monetary policy Federal
ECB and the Reflection:
policy, such as open decision made by a Reserve
Federal
market operations, central bank. Discuss
Reserve d. Monetary policy Students should refer
discount rates, and how the decision
objectives: to the rubric to ensure
reserve d. Monetary affects the money
inflation their calculations are
requirements. policy supply and contributes
targeting and accurate, their
objectives: to economic
c. Assess the monetary analysis is insightful,
inflation stabilization. Respond
effectiveness of targeting and their reflection
targeting and to at least two
monetary policy in demonstrates a strong
monetary classmates' posts.
stabilizing the understanding of the
targeting
economy, including topic.
its impact on
inflation,
employment, and
overall economic
growth.
Week 8 3 At the end of the Exchange rate SYNCHRONOUS Content Discussion on; In a face-to-face
discussion, students should policy setting, students will
be able to; a. Exchange rate participate in a
a. Explain the key management Interactive Discussion a. Exchange rate multiple-choice quiz
concepts and by the Central management by that evaluates their
objectives of Bank the Central understanding of
exchange rate policy ASYNCHRONOUS Bank exchange rate
and how it influences b. Exchange rate policies. The quiz will
a country's currency regimes: fixed, b. Exchange rate cover key concepts,
value. flexible, regimes: fixed, including different
Youtube Video Clip - flexible,
b. Assess the impact of managed types of exchange rate
Students will watch a managed
different exchange systems (fixed,
c. The costs, series of selected
rate policies (e.g., floating, pegged), the
benefits and YouTube videos c. The costs,
fixed, floating) on
risks of fixed explaining exchange benefits and factors influencing
international trade,
exchange rates rate policy, including risks of fixed exchange rate
inflation, and
 economic stability. the different types (e.g., exchange rates decisions, and the
c. Critically evaluate fixed, floating) and their effects on trade and
real-world examples economic impacts. economic stability.
of exchange rate After viewing, students Brainstorming The activity will be
policy decisions and will submit a brief followed by a brief
their effects on a summary of the key discussion to clarify
nation's economy. points discussed in the Think, pair, share any questions or
videos and reflect on misconceptions.
how exchange rate
policies affect
international trade and
economic stability.
Refer to the rubric for
evaluation criteria.
Week 9 By the end of the session, Money demand, SYNCHRONOUS Content Discussion on Students will write an
students should be able to; inflation, output and the following; essay analyzing the
Monetary Policy relationships between
a. The quantity Interactive Discussion money demand,
a. Explain the theory of a. The quantity inflation, and
relationship between money theory of money economic output, and
money demand, how these factors
ASYNCHRONOUS
inflation, and b. The demand b. The demand for shape the formulation
economic output, for money money and implementation of
and how these c. Output and monetary policy. The
Case Study Review - c. Output and
factors influence inflation in the essay should include
Read a provided case inflation in the
monetary policy long run real-world examples of
study on a monetary long run
decisions. monetary policy
policy decision. Write a
d. Aggregate d. Aggregate decisions and their
b. Evaluate the impact brief analysis
demand, demand, impact on inflation and
of monetary policy discussing its effects on
aggregate aggregate economic stability.
on inflation control, money demand,
supply and supply and Students should refer
money demand, and inflation, and economic
monetary monetary policy to the rubric to ensure
economic output, output.
policy their essays are well
using real-world
examples. organized, analytically
sound, and
 c. Apply concepts of demonstrate a deep
money demand and understanding of the
inflation to analyze topic.
the effectiveness of
different monetary
policies in stabilizing
the economy and
promoting growth.
Week 10 3 By the end of the session, Business cycle SYNCHRONOUS Content Discussion on Students will create
students should be able to; fluctuations and the the following; and present a brief
challenges for overview of how
Monetary Policy Interactive Discussion business cycle
a. Explain the stages of a. Sources of fluctuations impact
a. Sources of
the business cycle fluctuation in monetary policy,
fluctuation in
and their impact on ASYNCHRONOUS output and including a case study
output and
economic activity. inflation of real-world policy
inflation
responses. They will
b. Identify and analyze b. How Monetary analyze different
b. How Monetary Video Viewing
the challenges that Policy strategies and provide
Policy
business cycle -Watch a series of contributes to recommendations for
contributes to
fluctuations pose for videos on business economic managing these
economic
effective monetary cycle fluctuations and stabilization fluctuations. After the
stabilization
policy. the associated presentation, students
c. The monetary
c. The monetary challenges for will engage in a Q&A
c. Assess how different transmission
transmission monetary policy. Focus session to
monetary policy mechanism
mechanism on how different demonstrate their
responses can
phases of the business d. New challenges understanding. Refer
address the d. New
cycle affect economic for Monetary to the rubric for
challenges of challenges for
stability and the role of Policy assessment criteria.
business cycle Monetary
fluctuations and Policy monetary policy in
stabilize the managing these
economy. fluctuations.

Week 11 By the end of the session, Unconventional SYNCHRONOUS Content Discussion on Students will complete
students should be able to Monetary Policy the following; a multiple-choice
 a. The influence quiz focusing on
of the 2008 unconventional
a. Explain the purpose Interactive Discussion a. The influence of
crisis on monetary policy. The
and types of the 2008 crisis
monetary quiz will cover the
unconventional on monetary
policy impact of the 2008
monetary policy ASYNCHRONOUS policy
financial crisis on
tools, such as b. The ECB’s
b. The ECB’s monetary policy, the
quantitative easing “Securities
“Securities European Central
and negative interest Market Discussion Forum - Market Bank’s Securities
rates. Programme” Post a summary of the Programme” Market Programme
b. Assess the c. Quantitative unconventional (SMP), and the
monetary policy tools c. Quantitative concept and effects of
effectiveness of easing
discussed in the easing quantitative easing.
unconventional
monetary policies in videos. Analyze their Students should
achieving economic effectiveness in recent ensure their answers
stability and growth economic scenarios Think, Pair, Share reflect a clear
during periods of and engage with understanding of
economic stress. classmates by these topics.
commenting on their
c. Evaluate the posts with additional
potential long-term insights or questions.
implications of
unconventional
monetary policies on
the financial system
and the economy.
Week 12 1 MIDTERM EXAMINATION

Week 13 3 By the end of the session, Philippine SYNCHRONOUS Content Discussion on Students will complete
students should be able to; Financial the following; a multiple-choice
System quiz focusing on the
a. The Role of the Interactive Discussion Philippine financial
a. Describe the Banko Sentral a. The Role of the system, including the
structure and key ng Pilipinas Banko Sentral role of the Banko
components of the ASYNCHRONOUS ng Pilipinas Sentral ng Pilipinas
b. Nature of
Philippine financial (BSP), the nature and
 system, including Central b. Nature of origin of central
banks, non-bank Banking Central Banking banking, and the
Video Lecture
institutions, and historical development
c. Origin of c. Origin of
regulatory bodies. -Watch a series of of the BSP. The quiz
Central Banks, Central Banks,
video lectures on the will cover the BSP’s
b. Analyze the roles The Banko The Banko
Banko Sentral ng objectives,
and functions of Sentral Sentral
Pilipinas (BSP), its role responsibilities, and
major financial and the and the
in the Philippine authority, as well as its
institutions in the Economy Economy
financial system, the impact on the
Philippines and their
d. A Brief History nature and history of d. A Brief History economy. Ensure
impact on the
of BSP central banking, and of BSP answers reflect a
economy.
the BSP’s impact on thorough
e. Objectives and e. Objectives and understanding of
c. Evaluate the the economy.
Responsibilities Responsibilities these topics. Refer to
regulatory framework
of the BSP of the BSP the rubric for
governing the
Philippine financial f. Central Bank f. Central Bank assessment criteria.
system and its Authority Authority
effectiveness in
ensuring financial
stability and
protecting investors.
Week 14 3 By the end of the session, The Central SYNCHRONOUS Content Discussion on Students will
students should be able to; Monetary Authority the following; participate in a
a. The Monetary graded recitation
Board Interactive Discussion focused on the Central
a. Explain the role and a. The Monetary Monetary Authority.
b. Powers of the They will discuss key
functions of the Board
Monetary topics including the
central monetary ASYNCHRONOUS
Board b. Powers of the role of the Monetary
authority in
Monetary Board Board, its powers, and
managing a c. Powers &
country’s monetary Duties of the c. Powers & the duties of the
policy. Governor Duties of the Governor. Additionally,
Readings Governor students will address
b. Assess how the d. Domestic issues related to
central monetary -Students will read d. Domestic
Monetary domestic and
authority’s policies assigned materials on
 influence economic Stability the Central Monetary Monetary international monetary
stability, inflation, Authority, including the Stability stability and the
e. International
and growth. Monetary Board’s functions of the central
e. International
powers and the bank. The recitation
c. Evaluate the Monetary Monetary
Governor’s will assess their
effectiveness of the Stability Stability
responsibilities. They understanding of
central monetary
f. Central Bank will post a summary f. Central Bank these concepts
authority in achieving
and analysis in the through oral
its economic
discussion forum, responses and
objectives and
review a relevant case interactions. Refer to
maintaining financial
study, and complete an the rubric for
stability.
interactive quiz. Finally, evaluation criteria on
students will write a clarity, depth of
brief reflective knowledge, and
summary. Refer to the engagement.
rubric for assessment
criteria.
Week 15 3 By the end of the session, Functions and SYNCHRONOUS Content Discussion on Students will complete
students should be able to; Operations of the the following; a multiple-choice
Banko Sentral quiz on the Banko
ng Pilipinas Interactive Discussion Sentral ng Pilipinas
a. Describe the primary a. Characteristics a. Characteristics (BSP), focusing on its
functions and of BSP of BSP characteristics,
operations of the ASYNCHRONOUS primary functions,
b. Functions of b. Functions of
Banko Sentral ng monetary tools,
BSP BSP
Pilipinas (BSP), operational activities,
including monetary c. Monetary Students will review the c. Monetary role in industrial
policy, financial Tools slides on the Orange Tools development,
regulation, and app covering the coordination with
d. Activities of d. Activities of
currency issuance. functions and international
the CB the CB
operations of the Banko institutions, and credit
b. Assess how BSP’s operations. Ensure
e. The BSP and Sentral ng Pilipinas e. The BSP and
functions and answers reflect a
operations influence (BSP). Industrial
Industrial Development thorough
economic stability understanding of
and financial markets
 in the Philippines. Development f. The CBP these topics. Refer to
the rubric for
c. Evaluate the f. The CBP
Coordinates assessment criteria.
effectiveness of
With
BSP’s operations in Coordinates
International
achieving its With
Institutions
objectives and International
maintaining financial Institutions g. Credit
stability.
g. Credit
Operations
Operations
Think, Pair, Share

Week 16 3 By the end of the session, Supervision of SYNCHRONOUS Content Discussion on Students will write an
students should be able to; Financial the following; essay on the
Institutions importance of
a. Supervision Socialized Discussion supervising financial
a. Describe the key and a. Supervision institutions. The essay
roles and Regulation and should discuss the
responsibilities ASYNCHRONOUS Regulation role of supervision in
b. Types of
involved in maintaining financial
b. Types of stability, managing
supervising financial
institutions. Examination
Students will review the risks, and ensuring
b. Assess various Examination regulatory compliance.
c. Monetary slides uploaded on the
techniques and Theory Orange app covering c. Monetary It should also explore
methods used in the Theory the impact of effective
the supervision of
supervision of d. Inflation supervision on
financial institutions financial institutions.
d. Inflation economic stability and
to ensure e. Types of After studying the
 compliance and Inflation slides, post a summary e. Types of investor confidence,
stability. in the discussion forum Inflation and address
c. Evaluate the f. Unemployment
highlighting key challenges and
effectiveness of Theories of f. Unemployment
aspects of supervisory potential
supervisory practices Theories of
roles, risk improvements in
in maintaining the Employment
management, and the supervisory practices.
health and stability of Employment
g. Types of impact on financial Ensure your essay is
financial institutions.
stability. Additionally, g. Types of clear, well organized,
Employment complete an interactive and supported by
quiz based on the slide Employment relevant examples.
h. Monetary content to test your Refer to the rubric for
Policies understanding. Refer to h. Monetary evaluation criteria.
the rubric for Policies
i. Objectives of
assessment criteria. i. Objectives of
Monetary Monetary
Policies
● Responsibilities
of Fiscal
Policies

Week 17 3 PROJECT COMPLETION

Week 18 1 FINAL EXAMINATION

Total 54 hrs

VI. Course Output:

1. Conduct a detailed case study analysis of a major central banking intervention (e.g., quantitative easing, interest rate adjustments). Students will
evaluate the context, execution, and outcomes of the intervention and present their findings in a structured report.

VII. Course Requirements:

 The student is expected to comply with the following:
1. Must have at least 80% attendance of the prescribed number of days.
2. Obtain satisfactory rating for quizzes, recitation and major examinations given for the course.
3. Finish and submit all requirements at the end of the semester.
VIII. Course References
1. Burton & Lombra.(2004) The Financial System & the Economy: Principles of Money & Banking . 3rdEd. USA: Thomson Southwest.
2. Cecchetti,S.(2006) Money, Banking & Financial Markets. NY: McGraw-Hill Irwin.
3. Ibon Databank & Research Center(2003) The Philippine Banking Sector. Manila: Ibon books.Leuterio,
4. M.etl. (2004) Banking: Theory & Practice. Revised Ed. Pasig City: Rex Bookstore.
5. Miller, R. et.al. (2007) Money,Banking, Financial Markets. 3rdEd. USA: ThomsonSouth-Western.
6. Miranda, Gregorio S. (2004) Money, Credit & Banking.. Manila: L&G Enterprises.
7. Rose, P. et. Al. (2008) Bank Management and Financial Services. 7thEd.NY: McGrawHill
8. Saunders, A. et al. (2008)Financial Institutions Management: A Risk Management Approach. 6thEd.NY: McGrawHill
9. Moffet, M. et.al. (2006) Multinational Finance. 2ndEd.USA: Pearson
10. Valdez, et.al. (2003) An Introduction to Global Financial Markets. 4thEd.New York: PalgraveMacMillan

IX. Grading System

LECTURE GRADE
Major Examination 40%
Class Standing 60%
Quizzes 30%
Recitation 10%
Performance Tasks 20%________
100%

TERM GRADE: 40% (Major Examination) + 60% (Class Standing)

FINAL GRADE: (Prelim Grade) + (Midterm Grade) + (Tentative Final Grade)
3

Prepared by: Checked by: Approved by:

 KRISTOPHER RYAN C. DE VERA, MBA MONA LIZA D. ABANES, PhD GLORIA C. NEMEDEZ, PhD
Instructor Dean, College of Business Administration Asst. Vice President for Academic Affairs

Date Updated: September 3, 2024