Money and Banking (FIN 301/ECON 210)

FIN 301/ECON 210-01
Spring 2015

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 1014

Text: The Economics of Money, Banking, and Financial Markets 10th ed. By Fredrick Mishkin, (M), Addison and Wesley ISBN 10: 0-13-277024-5.  A new edition was due out Jan. 7, but we will stick with this one.  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 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 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 24, 2015

Date               Chapters            Topics

Jan 13            S1, S2, M1-3       Introduction, the economy as a whole, money and banks

Jan 20           S1, S2, S3            The economy, interest rates and bond prices

Jan 27           M8                        Financial structure, adverse selection and moral hazard

Feb 3*           S4, M13, M14      The supply of money, the monetary base

Feb 10           S4, M13, M14      Deposit creation and the supply of money

Feb 17           S4, S5                    More

Feb 24          S5                           The demand for money, Fisher and Cambridge

Mar 3            S5                            Keynes, Friedman

Mar 10         /////                       Spring Vacation

Mar 17*       S5, S6                     Efficient Markets and Rational Expectations

Mar 24        S6                           The theory of interest, Fisher and the ex ante real rate

Mar 31        S6, S8                     More, the Fed and interest rates, inflation

Apr 7*         S6, S8                    Financial crises, the Great Depression

Apr 14        M9, S7                   The Savings and Loan Crisis of the 1980’s

Apr 21       M9                           The Subprime Crisis

Apr 28*     ////                         Last Quiz

An asterisk * denotes a quiz on Thursday of 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.

General Information
 Library Services –

 Student Services –

 Withdrawing from the Class –

 Student Code of Conduct/Academic Integrity –

 Americans with Disabilities Act –

 Blackboard Support –