Course Syllabus
Session : FALL 2013
COURSE TITLE:
MONEY & BANKING
COURSE CODE :
ECO300
COURSE TIMING :
THURSDAY 16:30 to 19:30 pm
TEACHER INFORMATION:
Mr. Mehdi Elharti ([email protected])
B.A. in Economics, California State University Chico
M.S. in Economics, California State Polytechnic University Pomona
PhD student in Economics, Universidad de Granada, Spain
INSTRUCTIONAL MATERIAL AND RESSOURCES :
Title
Edition
Author
Money, Banking and the Financial System
2012
Glen Hubbard &
Anthony P. O'Brien
The Age of Turbulence
2008
Alan Greenspan
COURSE OBJECTIVES
The course will introduce students to monetary and financial institutions. We will study
how monetary policy influences interest rates and asset markets, such as the bond market
and the stock market. We will analyze the effect of asymmetric information in corporate
finance, the design of financial contracts. We will analyze financial intermediation and the
role of banks in the economic system and study the economic rationale behind banking
regulation. Finally, we will discuss monetary policy. Specifically, we will review evidence
and theory on how monetary policy affects real economic activity, and then study the
instruments and goals of monetary policy, focusing in particular on credibility and
expectations management for central banks, and the connection with fiscal policy.
TENTATIVE COURSE OUTLINE
Class 1
Review of Macroeconomics
Why Study Money, Banking, and Financial Markets?
Class 2
An Overview of the Financial System
What Is Money?
Class 3
Structure of Central Banks
Determinants of the Money Supply
Class 4
Tools of Monetary Policy
Conduct of Monetary Policy: Goals and Targets
Class 5
Class 6
Class 7
Transmission Mechanisms of Monetary Policy: The Evidence
The Demand for Money
Money and Inflation
Understanding Interest Rates
The Behavior of Interest Rates
The Risk and Term Structure of Interest Rates
The Stock Market, the Theory of Rational Expectations,
and the Efficient Market Hypothesis
Class 8
An Economic Analysis of Financial Structure
Banking and the Management of Financial Institutions
Class 9
Banking Industry: Structure and Competition
Economic Analysis of Banking Regulation
Class 10
Nonbank Finance
Financial Derivatives
Class 11
Islamic Banking
Class 12
The Foreign Exchange Market
Class 13
The International Financial System
Class 14
Monetary Policy Strategy: The International Experience
Class 15
The Global Financial Crisis of 2007
Class 16
Review
COURSE ASSESSMENT AND GRADING:
The class will be mainly conducted through formal lectures. You are encouraged to ask
questions. Your final grade depends on your performance in the following categories:
Participation = 10%
Assignments/Homework = 25%
Midterm exam = 25%
Final exam = 40%
Grades are strictly based on performance in the course, not on personal circumstances. There is
no negotiating for grades. There will be no sharing of calculators during an exam.
The following AUL grading schedule will be used:
POINTS
95+
90-94
87-89
84-86
80-83
77-79
74-76
70-73
67-69
64-66
60-63
<59
GRADE
A
AB+
B
BC+
C
CD+
D
DF
STUDENT’S RESPONSIBILITIES :
Please note that student grades depend on participation in class. Students should actively
engage themselves in all the class activities including discussions, respect the others, ask timely
questions, answer questions, share insights, bring interesting material and ideas, speak in class
when inspired without monopolizing, be helpful, and exceed the expectations of the instructor.
Attendance
Students are expected to attend ALL classes. Students are only allowed to attend their
registered sections. Attendance will be taken from the first day of class. Students who miss
class are obviously not contributing to the discussion, so grades for participation will suffer.
Attendance is mandatory and forms part of your grade. Arriving late or leaving earlier as well as
having a break during the class will result in deduction of your participation grade.
If you arrive late to class after attendance is taken, it is your responsibility to notify the
instructor immediately after the class in the classroom in question of your late attendance;
otherwise, you are absent.
Any student whose attendance drops below 85% in the semester will be forced to withdraw from
the class and/or fail the course if no withdraw occurs.
Behavioral Expectations
General conversation between students while class is in session can result in the student’s
dismissal from the class. Continued violations may result in permanent dismissal from the
course. Cheating will not be tolerated in this course.
Mobile phones are a distraction in class. They must be turned off and put away out of sight.
Student Academic Integrity Code Statement
Students are advised that violations of the Student Academic Integrity Code will be treated
seriously and can lead to suspension or dismissal from the university. A notation of the
academic integrity code violation can become part of the student’s permanent record.
Academic violations include but are not limited to:
•
Plagiarism
•
Inappropriate Collaboration
•
Inappropriate Proxy
•
Dishonesty in Examinations and Submitted Work
•
Work Completed for One Course and Submitted to Another
•
Deliberate Falsification of Data
•
Interference with Other Students’ Work
•
Copyright Violations
•
Complicity in Academic Dishonesty
Note: Both the syllabus and course outline are subject to change without notice at the
Professor’s discretion.