Money and Banking (FIN 301/ECON 210)

FIN 301/ECON 210-10
Fall 2015

Roosevelt University

Instructor: Donald W. Swanton

Contact Information: office Wabash 1112Z, telephone (312) 281-3278, fax (312) 281-3290, email To find my web page Google “Swanton Roosevelt”.  I am the first hit.  My web site has information about office hours etc.

Time and place: Monday evening 6:00-8:30 WB 612

Text: The Economics of Money, Banking, and Financial Markets 10th ed. The 11th edition of out, and you WILL need it by Fredrick Mishkin, (M), Addison and Wesley ISBN 10: 0133836797. 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 for each crisis.

Student Learning Objectives: business discipline principles.

Grades: Grades will be determined by the 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. It takes and average of at least 3.51 for an A, 2.51 for a B, etc.

Attendance: I do not usually take attendance, but I will take it several times.

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 Oct. 5, 2015

Date               Chapters              Topics

Aug 24           S1, S2, M1-3        Introduction, the economy as a whole, money and banks

                        This is correct. We begin two weeks before Labor Day.

Aug 31            S1, S2, S3           The economy, interest rates and bond prices

Sep 7              /////                    Labor Day no class

Sep 14            M8                        Financial structure, adverse selection and moral hazard

Sep 21*         S4, M13, M14      The supply of money, the monetary base

Sep 28          S4, M13, M14      Deposit creation and the supply of money

Oct 5             S4, S5                   More; the Quantity Theory, Fisher and velocity

Oct 12           S5                          The demand for money, Fisher and Cambridge

Oct 19*         S5                           Keynes, Friedman

Oct 26          S5, S6                    Efficient Markets and Rational Expectations

                      October 27 is the last date to withdraw from the class and receive a W grade.

Nov 2           S6                        The theory of interest, Fisher and the ex ante real rate

Nov 9*         S6, S8                 More, the Fed and interest rates, inflation

Nov 17         S6, S8                 Financial crises, the Great Depression

Nov 23        M9, S7                The Savings and Loan Crisis of the 1980’s

Nov 30        M9                      The Subprime Crisis

Dec 7*         ////                     Last Quiz

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

Roosevelt University Policies.

The university’s three overall learning goals for both undergraduate and graduate students are:
Goal: Effective communication.

Goal: Knowledge of disciplined-focused content.

Goal: Awareness of social justice and engagement in civic life.


*** Academic dishonesty: The university’s policies on issues such as plagiarism, recycling, cheating and other forms of academic dishonesty can be found in the student handbook, which is available as a link here: . Additional guidelines for avoiding plagiarism are available here:

*** Disability: Roosevelt University complies fully with the Americans with Disabilities Act. Details about ADA and Roosevelt’s policies and practices are found in the following link: If you have a condition or disability that requires reasonable accommodation, please alert your instructor or the Academic Success Center as soon as possible, certainly before any assignment or classroom activity that requires accommodation. The Academic Success Center is located in AUD 128 in Chicago, and the phone number is 312-341-3818. In Schaumburg, the office is in room 125, and the phone number is 847-619-7978. Email Nancy Litke at or Danielle Smith at .

*** Withdrawal date: The final date for an official withdrawal from this class (meaning a “W” would appear on your transcript) is Tuesday, Oct. 27. After that, if you want to withdraw, you’ll need to petition the registrar. Petitions are granted only for non-academic reasons after the deadline. If you receive financial aid, it’s best to check with your counselor to assure that aid isn’t affected by withdrawing from a class. The complete withdrawal policy is here:

*** Religious holidays: Please let your instructor know as soon as possible if you will miss class because you are observing a religious holiday. Roosevelt University policy requires written notification to me within the first two weeks of the term. Any work you miss because of a religious holiday can be made up. You can see the full policy here:

*** Student Code of Conduct: Students enrolled in the university are expected to conduct themselves in a manner compatible with the university’s function as an educational institution.