Money and Financial Institutions Economics 328
Office Hours: Coleman 162 ; MW 1-2. Others by appointment.
- R. Glenn Hubbard. Money and the Financial System and the Economy.
2nd edition, New York: Addison Wesley, 1997.
- Burton Malkiel. A Random Walk Down Wall Street. 6th edition,
New York: W.W. Norton & Co., 1996.
- Please subscribe and read weekday editions of the New
York Times or the Wall Street Journal.
ASSIGNMENTS: January | February
| March | April
Jan. 22 Introduction to the course--goals,
objectives, assignments, grading
Jan. 27 Chapters 1 & 2-Money, the Financial System and the Payments
Portfolio Assignment (part 1--Hollywood Stock Exchange (optional))
Jan. 29 Chapter 3 - Overview of the Financial System
Feb. 3 Chapter 4 - Interest Rates and Rates
Feb. 5 Chapter 4 continued--Portfolio
Assignment -- trial stocks
Feb. 7 A Random Walk Down Wall Street (Part 1)
Feb. 10 A Random Walk Down Wall Street (Part 2)
Feb. 12 A Random Walk Down Wall Street (Part 3)
Feb. 14 A Random Walk Down Wall Street (Part 3 continued)
& Chapter 5
Feb. 17 Continuing to walk randomly and Portfolio Assignment (part
Feb. 19 Chapter 6 - Determining Market Interest Rates
Feb. 21 Chapter 6 continued
Feb. 24 Chapter 6 continued
Feb. 26 Chapter 7 - Risk Structure of Interest Rates
Feb. 28 Chapter 7 - Term Structure of Interest Rates
March 3 Examination 1
March 5 Chapter 8 - Foreign Exchange Market and Exchange Rates
March 7 Chapter 9- Derivatives (options, futures and the like)
March 10 Chapter 10 - Information and Market Efficiency
March 12 Chapter 11- Reducing Transactions and Information Costs
March 14-23 Spring Break
March 24 Chapter 12 - What Financial Institutions Do
March 26 Chapter 12 continued
March 28 Chapter 13 - The Business of Banking
March 31 Chapter 13 continued
April 2 Chapter 14 - The Banking Industry
April 4 Chapter 14 continued
April 7 Chapter 15 - Banking Regulation: Crisis and Response
April 9 Chapter 15 continued
April 11 Examination 2
April 14 Chapter 16 Banking in the International Economy
April 16 Chapter 16 continued
The Money Supply Process and Monetary Policy
April 18 - Chapter 17 - The Fed and the Money Supply
April 21 Chapter 19 - The Organization of the Federal Reserve System
April 23 Chapter 20 - Monetary Policy Tools
April 25 Chapter 21 - The Conduct of Monetary Policy
April 28 Chapter 21 continued
April 30 Chapter 22 - The International Financial System and Monetary
Money and the Macroeconomy
May 2 Chapter 27 - Information Problems and Monetary Policy
May 5 Chapter 28 - Inflation: Causes and Consequences
May Final Examination
Class periods will be devoted to presentation and informal discussion of
the assigned readings.
The following criteria will be used for course evaluation:
Class Discussion/Participation (10%)
Includes daily preparation of assigned materials and reflection about material
in reading assignments and participation in class discussions. (Make sure
that you are have scanned the Wall Street Journal or New York Times for
- Journal (10%)
- Please keep a journal in which you write about the financial events
which occur during the semester. Occasionally you will be asked to prepare
a short written answer about an assigned topic--or to write a summary of
a web-based project. While this is not a W course your journal entries should
still demonstrate all aspects of the writing process, including: thinking
through the issues presented, stating or summarizing the issue clearly and
revising if necessary. Please hand in your journal three times during the
semester, including the last day of class (That's the third time). (Please
space the timing in which you hand in your journal. Do not hand in your
journal in fewer than three week intervals.
- Portfolio Assignment (10%)
- Early in the semester you will be asked to select a financial portfolio
which you will track through the semester. You will not only to watch and
record the performance of your portfolio, but indicate individual economic
or political factors might be responsible for changes in the price of each
asset during the course of the semester.
There will be three examinations during the course of the semester, including
a comprehensive final examination.
If you would like to discuss your written work or class participation, please
feel free to stop in my office, (Coleman A162) to discuss your progress.
Attendance: (standards for your class participation grade)
Please arrange your appointments for job interviews or participation in
sports events at other times than class meetings. Since participation is
a large part of evaluation, class absences will be reflected in your grade
for the course.
In addition to the above, you may use the following as an attendance guide
which will be part of my assessing "Class Discussion":
4.0 Perfect attendance. Always well prepared and contributes actively
in most classes.
3.0 90% attendance. Almost always well prepared and usually contributes
2.0 80% attendance. Usually prepared and contributes actively to
about half of the classes.
1.0 At least 50% attendance. Only prepared about half of the time.
Contributes actively about 20 % of the time.
0.0 Attends occasionally. Poor preparation.