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, web site   My web site has information about office hours etc.

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

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 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 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 July 2, 2015

Date              Chapters                     Topics

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

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

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.


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