Money and Banking (FIN 301/ECON 210)

FIN 301/ECON 210-01

Spring 2013

Roosevelt University

MONEY AND BANKING

SYLLABUS

Instructor: Donald W. Swanton

Contact Information: office Wabash 1112Z, telephone (312) 281-3278, fax (312) 281-3290, email dswanton@roosevelt.edu, web site http://sites.roosevelt.edu/dswanton/. My web site has information about office hours etc.

Time and place: Tuesday-Thursday 4:30-5:45 WB 1214 ROOM CHANGE

Text: The Economics of Money, Banking, and Financial Markets 10^th ed. By Fredrick Mishkin, (M), Addison and Wesley ISBN 10: 0-13-277024-5. The loose leaf version is fine. I will be handing out my Notes on Money and Banking (S) in class as the semester progresses.

Prerequisites: ECON 101-102, MATH 116 or 121, ENG 101-102. The mathematics prerequisite is very important. Students who attempt this class before finishing it generally drop the class within a few weeks.

Goals: This course introduces students to the functions of banks and other financial intermediaries and the economic theories of the roles of money and of the central bank in the economy. It is both theoretical and historical. We will talk about financial crises, and since our understanding of the last crisis is rapidly evolving, I reserve the right to add new material at any time. We will discuss ethical issues or each crisis.

Student Learning Objectives: business discipline principles.

Grades: Grades will be determined by an average of the best three out of the four quiz grades. Quizzes will receive the numerical version of letter grades, A = 4.00, A/B = 3.50, B = 3.00 B/C = 2.50, etc.

Attendance: I do not take attendance.

Plagiarism: Please review Roosevelt’s policy on plagiarism. www.roosevelt.edu/plagiarism

Religious Holidays: Roosevelt’s policy is to accommodate students who will be celebrating religious holidays. Talk to me in the first couple of weeks, and we will work something out.

http://www.roosevelt.edu/~/media/Files/pdfs/Policies/HumanResources/ReligiousHoliday.ashx

Notes: My Notes on Money and Banking currently consist of:

S1 Functions of the Financial System

S2 Money and the Economy as a Whole

S3 Interest Rates and Bond Prices

S4 The Supply of Money

S5 The Demand for Money

S6 The Theory of Interest

S7 The Golden Savings and Loan Case: an Economic and Ethical Analysis

S8 Inflation and its Effects.

SCHEDULE

As of April 15, 2013

Date Chapters Topics

Jan 15 S1, S2, M1-3 Introduction, the economy as a whole, money, banks

Jan 22 S1, S2, S3 The economy, interest rates and bond prices

Jan 29 M8 Financial structure, adverse selection, moral hazard

Feb 5* S4, M13, M14 The supply of money, the monetary base

Feb 12 S4, M13, M14 Deposit creation and the supply of money

Feb 19 S5 The Quantity Theory, Fisher and Cambridge

Feb 26 S5 Tuesday class cancelled, Fisher and Cambridge

Mar 5 S5, S6 Tuesday class cancelled again, Keynes, Friedman

Mar 12* S5, S6 Quiz Tuesday March 12,

Efficient Markets and Rational Expectations

Mar 19 ///// Spring Vacation

Mar 26 S6 Rational expectations and the theory of interest

Apr 2 S6, S8 More, the Fed and interest rates, inflation

Apr 9* S6, S8 More theory of interest

Apr 16 M9, S7 Financial Crises: the 1930′s and the 1980′s

Apr 23 M9 The Subprime Crisis

Apr 30* //// Last Quiz Thursday May 2

An asterisk * denotes a quiz on Thursday of that week. This schedule is tentative and subject to drastic rearrangement depending on the state of the economy. Consult my web page for the current version.

General Information