FIN 301/ECON 210-01
MONEY AND BANKING
Instructor: Donald W. Swanton
Contact Information: office Wabash 1112Z, telephone (312) 281-3278, fax (312) 281-3290, email email@example.com, web site http://blogs.roosevelt.edu/dswanton/. 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. www.roosevelt.edu/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 April 22, 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. The last quiz during exam week officially begins at 3:30 to last two hours before the 6:00 classes start. I will be in the class room at 3:30, but remember that the quiz is the same length as the others. 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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