Money and Banking

                                     Syllabus - Fall 2008

 

Instructor:  Dr. Juan Yang

Office Hour

       Open door policy.  If unavailable, please schedule an appointment by email or phone.

 

Objectives 

            The objective of this course is to guide students in the development of critical

thinking skills in economics as applied to the topics of banking and monetary theory.  Basically it

is a monetary theory and policy course.  We will use economic principles such as supply and

demand, the concept of equilibrium, the theory of asset demand, and profit maximization are

applied to study the role of money in the economy and the institutional characteristics of the

banking system and financial markets.

 

Process

The primary purpose of the classroom presentation and discussion will be to explain the basic concepts.  Many of the detailed "facts" will be learned through working the homework problems and projects.  You will need to become familiar with new terminology and principles as well as the logic and process of addressing monetary problems. Assigned problems and projects will help develop your thought processes when addressing financial and monetary problems in the "real world.

 

Prerequisites

The prerequisites for this course are General Economics and Intermediate Macroeconomics.  Students not having met these prerequisites are advised not to enroll in this course.

 

 

Grading

Grades will be assigned on the basis of student performance and weighted as follows:

 

Class Presentation	30 percent
Team Projects	30 percent
Final Exam	30 percent
Quiz	10 percent
Total	100 percent

 

 

Textbook

Basic Texts:  Frederic S. Mishkin's The Economics of Money, Banking, and Financial Markets (use a recent edition).

In addition, I strongly recommend two books:

1.      A Term at the Fed: An Insider's View by Laurence Meyer and

2.      Inflation, Unemployment, and Monetary Policy by Robert M. Solow and John B. Taylor. 

Both books are filled with keen insights and observations about economies, economic theories, and the role that monetary theory has played in policy making.  Reading these books will help you develop an intellectual interest in economic issues. 

 

Prerequisite Reading:

Students are urged to refresh and familiarise themselves by studying Chapters 23, 24 and 25 in the Mishkin Text book. These three Chapters present a good summary of Keynesian economics and Aggregate Demand and Supply Analysis.

 

Course Outline (chapters refer to Mishkin 6^th edition)

1.  Why Study Money, Banking and Financial Market

2.          An Overview of the Financial System

3.  What is Money?              

4.  Understanding Interest Rates

5.   The Behavior of Interest Rates 

14.        The Structure of Central Banks and the Federal Reserve System

15.        An Introduction to the Money Supply Process

16.        Determinants of the Money Supply

17.        The Tools of Monetary Policy

18.        The Conduct of Monetary Policy: Target and Goals               

19.        The International Financial System and Monetary Policy

20.        Monetary Policy Strategy: The International Experience

24.        Aggregate Demand and Supply Analysis

25.        The Transmission Mechanisms of Monetary Policy

26.  Money and Inflation