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"Money makes the world go round." "Money is the root of all evil." These contrasting views summarize the importance and destructive nature of "money." In this module we (i) examine the critical role money plays in the efficient functioning of the modern economy, (ii) examine the role of credit and credit granting institutions, such as banks and other financial institutions, taking note of how financial institutions provide benefits and impose costs on the economy; (iii) inquire into the regulation of banks and other financial institutions taking note of regulatory successes and failures; (iv) consider the role of central banks in creating macroeconomic stability and promoting economic growth.
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