Money and Banking (FIN 301/ECON 210)

FIN 301/ECON 210-10

Spring 2017

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.  The easy way to find my web page is to Google “Swanton Roosevelt”; I am the first hit.

Time and place:  Tuesday evening 6:00-8:30    WB  1015

Text:  The Economics of Money, Banking, and Financial Markets 11th ed. By Fredrick Mishkin, (M), Addison and Wesley ISBN 13:978-0133836790.  The loose leaf version is fine.  You will not need web access, so a used book is OK.  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 January 13, 2017

Date                 Chapters                       Topics

Jan 17              S1, S2, M1-3              Introduction, the economy as a whole, money and banks

Jan 24              S1, S2, S3                  The economy, interest rates and bond prices

Jan 31              M8                              Financial structure, adverse selection and moral hazard

Feb 7*              S4, M13, M14           The supply of money, the monetary base

Feb 14              S4, M13, M14           Deposit creation and the supply of money

Feb 21              S4, S5                         More; the Quantity Theory, Fisher and velocity

Feb 28              S5                               The demand for money, Fisher and Cambridge

Mar 7               /////                           Spring Vacation

Mar 14*            S5                               Keynes, Friedman

Mar 21             S5, S6                          Efficient Markets and Rational Expectations

                         Last day to apply for a W is Friday March 24.

Mar 28             S6                                The theory of interest, Fisher and the ex ante real rate

Apr 4                S6, S8                          More, the Fed and interest rates, inflation

Apr 11*            S6, S8                           Financial crises, the Great Depression

Apr 18              M9, S7                         The Savings and Loan Crisis of the 1980’s

Apr 25              M9                                The Subprime Crisis

May 2*             ////                               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.


General Information


  • Student Services –




  • Americans with Disabilities Act –



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 Monday, March 28, 2016. 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.

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