Download ECON 4111-001 Money and Banking

Syllabus
The Economics of Money and Banking
Instructor:
office:
phone:
office hrs:
Dan Zuchegno
Econ. 309
492-6875
Tue. 1:00 - 2:00
Tue. 4:00 - 5:00
Textbooks: The Economics of Money, Banking & Financial Markets
Frederic S. Mishkin, 1989, Scott Foresman and Co.
optional: Study Guide to Economics of Money, Banking, and
Financial Markets.
Grading: There will be two exams in this course, one midterm
exam and a final exam.
Each exam will consist of part
multiple choice, part problems, and part essay. The
midterm exam will account for approximately 30% of the
total course grade. The final exam will be comprehensive
accounting for approximately 50% of the course grade.
There will also be two short exams, quizzes, each
accounting for approximately 10% of the course grade.
THE course can be broken down into several sections.
Section I is an introduction to money and financial
markets. This includes an overview regarding the
definition and role of money in an economy and a
description of the financial market system in the United
States.
Included is a discussion of the determination of
interest rates, their levels and structure.
Section II
pertains to the structure of the domestic banking system
and the process of money creation. Section III discusses
the policy tools through which the United States monetary
authorities can affect the domestic money supply.
Section IV is a detailed macroeconomic study of the
relationship between money and economic activity
Assignments
Section I.
Introduction
Introduction to Money
What is Money;
chpt. 1,2 (Mishkin)
Financial Markets
Overview of the Domestic Financial System; chpt. 3
Theory of Interest Rates;
chpt . 4
Asset Demand & Interest Rates; Chpt. S(Opti o nal), 6
The Risk & Term Structure of Interest Rates; chpt.7
Section II.
Banking & Financial Institutions
Bank Management;
chpt. 8
The Banking Industry;
chpt . 9
Investment Banking; pp. 222-230
(rest of chpt. 10 is Optional)
Financial Innovation & Regulation;
chpt. 11
Money Supply Process
High Powered Money & Money Multipliers;
chpt. 12
Determinants of the Money Supply;
chpt. 13
appendix chpt. 13.
Explaining Depositor & Bank Behavior;
chpt.14. (Optional)
Section III.
The Federal Reserve and Monetary Policy
Movements of the Monetary Base;
chpt. 16
Tools of Monetary Policy;
chpt. 17
Monetary Targets; chpt. 18
Section IV.
Monetary Theory
Money Demand;
chpt. 19
The Keynesian Framework: ISLM; chpt . 20, 21
Aggregate Demand and Aggregate Supply; chpt 22
Money & Inflation;
chpt. 24