Money and Banking - College of Liberal Arts

Money and Banking ECON 315-001, Fall 2016

Course Syllabus

Instructor: Alex Duvall-Pelham Office Location: Clark C322 Office Hours: Monday and Wednesday 10:30 a.m.-12:00 p.m. or by appointment E-mail: alex.d.pelham@ (please do not use my CSU email) Lecture Meets: Eddy 10 MWF 9:00-9:50 a.m. Course Websites:

a. Canvas is the class website: b. MyEconLab is the online homework and eText website:

Prerequisites: ECON 204 (Principles of Macroeconomics), Algebra

1. Course Description and Learning Objectives This course provides an overview of financial institutions in the U.S. economy, including the history and functions of money, financial institutions and markets, central banking, and the conduct of monetary policy.

By the end of the course you should be able to: a) Identify the different functions of money and how money is related to interest rates; understand how interest rates are determined, as well as the behavior of interest rates, and the risk and term structures of interest rates. b) Demonstrate the importance of financial markets and financial institutions in the domestic and international economies; identify the essential operations of depository institutions; justify why they are heavily regulated. c) Explain how a nation's money supply is determined; know the various tools of monetary policy, the role of central banks and the Federal Reserve System, and the conduct of monetary policy. d) Apply principles, theories and models to critically analyze and explain economic situations encountered in the real world that involve money, financial markets and institutions, financial crisis, and actions undertaken by central banks in the development and implementation of monetary policy

2. Course Materials and Graded Work: a. Required textbook: The Economics of Money and Banking by Frederic S.

Mishkin (11th Ed.) ISBN 13: 978-0133836790. A physical copy of the text is not required, but access to the online content is required for assignment. If students choose not to purchase a physical copy students must purchase the online access option that includes the e-text. A document with instructions for accessing the online content will be posted on Canvas. Lectures will closely follow the outline of the textbook with discussions drawn from news sources that will be made available on Canvas. Students are expected to read the relevant material in advance of class. A copy of the text is available on reserve at the library.

b. MyEconLab: Most assignments will be completed on MyEconLab, a supplement to the assigned textbook. These assignments will be due the week after the relevant material has been covered. See the calendar for tentative due dates. Instructions for registering for this course on MyEconLab will be posted on Canvas. MyEconLab is a very effective study aid for exams.

c. Exams: There will be four exams. Exams will be equally weighted and mostly noncumulative. They will be cumulative in the sense that material learned early in the semester will be crucial for understanding concepts covered later in the semester. A more detailed breakdown of the content is outlined below in section (5) and rough study outlines will be provided as each exam approaches.

d. News: Students are expected to follow the news on a regular basis. Because this course is highly relevant to real world issues, being up to date on current events adds to what students take from this course and enhances group discussions. All students pursuing a college degree, and economics majors in particular, should be following a news source with economic relevance independently of the expectations from this class.

3. Course Expectations a. Attendance, Participation, and Conduct: Attendance is expected, but will not be

enforced. Due to the challenging nature of the course material, absences will be very detrimental to students' outcomes. This is a theoretical course with real world relevance and participation is crucial for fully engaging in the material. Questions are strongly encouraged for the benefit of group learning as long as they are constructive and relevant. Students are welcome to speak their mind during discussion provided they are productive; it is expected that participants speak and behave respectfully towards others' views. Those who feel the need to use their computers are asked to sit towards the rear of the classroom so as to not distract their peers. There will be zero tolerance for use of cellular devices or social media. b. Contact Hours: Students are expected to put in approximately 9 hours of work per week. These hours typically break down to 3 hours of expected lecture attendance, 2 hours reading the relevant material for class, and 4 hours doing homework and/or studying for exams. Note that spending extra time on the homework is a very effective method of studying for exams. c. Communication: If you need help at any point during the semester, my door will always be open during office hours to get help if you want/need it. If my office hours don't work, I will make every accommodation possible to find a time that works for both of us. If face-to-face help isn't possible, I'm available through email as well. Please send these emails to me directly rather than through Canvas (alex.d.pelham@). Should the need arise to let you know of important changes to the course or schedule I will let you know in class and via email. Some announcements will be made on Canvas as well as supplementary material so students should be checking the course website daily. d. Late Work and Educational Responsibility: In extreme cases where communication with the instructor was not possible before an assignment was due, documentation must be provided and the circumstance barring the student from completing work must be a university approved excuse. Missed exams with a university approved

absence, prior approval by the instructor, or documented severe and unavoidable hardship may be allowed to be taken late. Missed exams without an approved excuse will be given a grade of zero. Late assignments without proper documentation will not be accepted and receive a grade of zero.

4. Grading: a. Assignments: There will be ten homework assignments. These will take the form of

problem sets on MyEconLab and article readings/summaries to be submitted on Canvas. Each homework assignment will be due at the beginning of class on the due date. The lowest MyEconLab grade will be dropped. Late work will not be accepted, unless an alternative due date has been previously approved or documentation is provided for an extreme circumstance. Homework assignments will count for 60% of the final grade. b. Exams: There will be 4 exams covering the topics outlined below. Exams count toward 40% of the final grade and are equally weighted.

A formula for calculating current and potential grades will be posted on Canvas. *Keep a copy of all work created for the course, including work submitted through Canvas. Grading scale:

Grade Percentage Grade Indicates

A+ 98-100 A 92-97.99 A- 90-91.99 B+ 88-89.99

B 82-87.99

B-

8081.99

C+ 78-79.99

C

7077.99

D

60-69

Excellent

Above Average

Average Below Average

F

0-59

Failure

5. Course Outline and Tentative Schedule: Each numbered point corresponds to roughly one week of lectures. This may vary dependent on class interest and pace. Intro: Money and the Financial System: 1. Course introduction. Why we study this. Overview of Financial System. Definitions of Money (Chapters 1, 2 and 3). Financial Markets: 2. Meaning and behavior of interest rates (Chapter 4 and 5). 3. Risk and Term Structure of Interest Rates (Chapter 6). 4. Stock Market, Rational Expectations, and Efficient Market Hypothesis (Chapter 7). Exam 1 Financial Institutions: 5. Economic Analysis of Financial Structure, Banking, and Management of Financial Institution (Chapter 8 and 9). 6. Financial Regulation and Structure of Banking Industry (Chapter 10 and 11). 7. Financial Crises: Part 1 (Chapter 12). Exam 2 Central Banking and Monetary Policy: 8. Central Banks and the Federal Reserve System (Chapter 13). 9. The Money Supply Process (Chapter 14). 10. Tools of Monetary Policy and Implementation (Chapter 15 and 16). 11. Alternative Theories of Money Supply (This is NOT in the book) Exam 3 International Finance and Policy: 12. Foreign Exchange Market (Chapter 17). 13. Exchange Rates and International Financial System (Chapter 18 and supplementary material). Financial Crises 14. The Global Crisis. The US housing bubble of the early 2000. From a financial crisis to a global recession. Policy Responses to the crisis (Supplementary Material). 15. Comparison of theoretical explanations for the recent crisis and history of past crises (Supplementary Material). Exam 4

6. Academic Integrity: Academic misconduct like cheating, plagiarism, etc., will be taken very seriously in this course, and can lead to an overall F grade. Plagiarism, for instance, includes quoting sources while writing a paper without referencing them. For more details about university policies relating to academic misconduct see . Each exam and assignment you submit, you will need to write and sign the CSU student honor pledge:

"I have not given, received, or used any unauthorized assistance."

7. Accommodation: Students with disabilities may be eligible for accommodations in accordance with Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act. It is the student's responsibility to disclose any learning disabilities. Please contact the instructor if a special accommodation is required. To request accommodations, students should contact Resources for Disabled Students at (970) 491-6385 or go to . Documentation of disability is required and the RDS office will assist in this process.

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