Money and Banking (FIN 301/ECON 210)

FIN 301/ECON 210-01

Spring 2014

Roosevelt University



Instructor:  Donald W. Swanton

Contact Information:  office Wabash 1112Z, telephone (312) 281-3278, fax (312) 281-3290, email, web site   My web site has information about office hours etc.

Time and place:  Tuesday-Thursday 4:30-5:45 WB 1017

Text:  The Economics of Money, Banking, and Financial Markets 10th 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.

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.

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.


As of February 25, 2014

Date                 Chapters                       Topics

Jan 14              S1, S2, M1-3               Introduction, the economy as a whole, money, banks

Jan 21              S1, S2, S3                    The economy, interest rates and bond prices

Jan 28              M8                               Financial structure, adverse selection and moral hazard

Feb 4*              S4, M13, M14             The supply of money, the monetary base

Feb 11              S4, M13, M14              Deposit creation and the supply of money

Feb 18              S4, S5                           More; the Quantity Theory, Fisher and velocity

Feb 25              S5                                 The demand for money, Fisher and Cambridge

Mar 4*             S5                                 Keynes, Friedman

Mar 11             /////                             Spring Vacation

Mar 18             S5, S6                          Efficient Markets and Rational Expectations

Mar 25             S6                                 The theory of interest, Fisher and the ex ante real rate

Apr 1                S6, S8                           More, the Fed and interest rates, inflation

Apr 8*              S6, S8                          Financial crises, the Great Depression

Apr 15              M9, S7                         The Savings and Loan Crisis of the 1980’s

Apr 22              M9                               The Subprime Crisis

Apr 29*            ////                              Last Quiz

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


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