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Money and Banking (308-0-20)


Richard E H Walker

Meeting Info

University Hall 122: Mon, Wed, Fri 12:30PM - 1:50PM

Overview of class

The course will examine the role of money and interest rates in the modern economy. We will first discuss the nature and functions of money. We will then build on the simple IS-LM model of intermediate macro, moving towards a more sophisticated view of monetary policy. This move will encompass such topics as the microfoundations of money demand, the Federal Reserve's ability to control monetary aggregates, the predictive power of bond prices and the effect of imperfect information on bank lending. We'll also consider the causes of hyperinflations, the appropriate goals for monetary authorities and the 2007-8 financial crisis.

Registration Requirements

ECON 281-0, ECON 310-1, ECON 311-0
Instructor note: Students should be comfortable with basic differential calculus.

Learning Objectives

Students will learn about the role of money and private banks in the modern world, and about the functions and preferred objectives of central banks.

Class Materials (Required)

NONE, There is no single textbook that is ideal for this course. Instead, much of the reading will come from other sources, such as articles and supplementary notes. We will discuss possible textbooks when we first meet.

Enrollment Requirements

Enrollment Requirements: Pre-requisite: Students must have taken ECON 310-1 or MMSS 211-1 and ECON 281 or ECON 381-1 or MATH 386-1 or IEMS 304 or STAT 350 to successfully enroll in this course.