Money and Banking (FIN 301/ECON 210)

FIN 301/ECON 210-01
Spring 2016

Roosevelt University
MONEY AND BANKING
SYLLABUS

Instructor:     Donald W. Swanton

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Contact Information: office Wabash 1112Z, telephone (312) 281-3278, fax (312) 281-3290, email dswanton@roosevelt.edu, web site http://blogs.roosevelt.edu/dswanton. My web site has information about office hours etc. Google “Swanton Roosevelt” to get there easily.

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Time and place:    Tues.-Thurs.    4:30-5:45     WB 609

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Text: The Economics of Money, Banking, and Financial Markets 11th ed. 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.

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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.

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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.

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Student Learning Objectives: business discipline principles.

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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.

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

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

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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

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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 May 3, 2016

Week of    Chapters              Topics

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Jan 19      S1, S2, M1-3         Introduction, the economy as a whole, money and banks

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.                 The first class is Thursday the 21st.

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Jan 26      S1, S2, S3              The economy, interest rates and bond prices

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Feb 2        M8                         Financial structure, adverse selection and moral hazard

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Feb 9        S4, M13, M14       The supply of money, the monetary base

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Feb 16*     S4, M13, M14      Deposit creation and the supply of money

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Feb 23      S4                          More

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Mar 1        S4, S5                   The supply of money, The Quantity Theory

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.                ////                         Spring break March 7 through March 12

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Mar 15*     S5                          The demand for money, Cambridge, Keynes, Friedman

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Mar 22     S5, S6                     Efficient Markets and Rational Expectations

.                                                 **  March 28 is the last day to apply for a W.  **

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Mar 29     S6                           The theory of interest, Fisher and the ex ante real rate

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Apr 5        S6, S8                    More, the Fed and interest rates, inflation

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Apr 12      S6, S8                     Financial crises, the Great Depression

The third quiz is put off until Tuesday April 19.

Apr 19      M9, S7                   The Savings and Loan Crisis of the 1980’s

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Apr 26     M9                          The Subprime Crisis

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May 3*    ////                         Last class Tuesday and  Last Quiz Thursday

FINAL EXAM SCHEDULE CONFLICT

FOR THE LAST QUIZ YOU MAY COME TO EITHER

ROOM 1015 AT 12:30 OR ROOM 609 AT 2:00.

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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.

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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: http://www.roosevelt.edu/CurrentStudents.aspx . Additional guidelines for avoiding plagiarism are available here: http://www.roosevelt.edu/Provost/Faculty/AcademicIntegrity.aspx
*** 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: http://www.roosevelt.edu/StudentSuccess/Disability/Discrimination.aspx 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 nlitke@roosevelt.edu or Danielle Smith at dsmith51@roosevelt.edu .
*** Withdrawal date: The final date for an official withdrawal from this class (meaning a “W” would appear on your transcript) is half way through the semester. 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: http://www.roosevelt.edu/Registrar/Registration/Drop.aspx
*** 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: http://www.roosevelt.edu/Policies/ReligiousHolidays.aspx
*** 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. http://www.roosevelt.edu/StudentSuccess/Conduct.asp