Eco 340: Money and Banking
Fall 2015 Syllabus
Instructor: Daniel Fischmar, 724-946-7162, [email protected]
Office Hours: MWF 3:00-4:00 and by appointment
Text: Frederic Mishkin, The Economics of Money, Banking, and Financial Markets, 11th ed. Pearson, 2016.
Course Outline
Plan
By the end of the course, the student will be able to:
1. Describe\calculate the factors that determine asset prices, interest rates and
exchange rates
2. Describe how regulators deal with asymmetric information problems, determine
money supply growth, and how the financial industry reacts to these constraints.
3. Describe how the growth of the money supply affects interest rates and, in turn,
short run economic fluctuations, inflation and deflation.
4. Explain the strategies and tactics to provide economic stability – what are the
appropriate goals and what tactics to use
Do
Measurable learning activities associated with each outcome are as follows:
1. Describe\calculate the factors that determine asset prices, interest rates and
exchange rates
a. Students discuss liquidity premium theory, interest parity theory and present
value concepts and calculate nominal and real interest rates and asset prices.
2. Describe how regulators deal with asymmetric information problems, determine
money supply growth, and how the financial industry reacts to these constraints.
a. Students work through problems on the effect of open market transactions on
bank balance sheets and experiment with techniques to lessen interest rate risk.
3. Describe how the growth of the money supply affects interest rates and, in turn,
short run economic fluctuations, inflation and deflation.
a. Students use concepts of monetary transmission mechanisms to explain how
conventional and non-conventional policies work to stabilize the economy.
4. Explain the strategies and tactics to provide economic stability – what are the
appropriate goals and what tactics to use
a. Students use the Taylor model to predict short maturity interest rates and explain
how the Fed attempts to stabilize the economy
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Check
Methods for measuring and evaluating learning associated with each learning activity
are as follows:
Evaluation is performed through in-class problem solving, on-line homework, short case
study analysis exercises.
Act
The mix of homework (which includes small case problems, straight forward
calculations, and short answers) can be adjusted depending on the amount of remedial
work that is required.
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Grading Policies
FinalGradesareaweightedaverageofexamsandhomework.Thecomponentsofthefinalgradeare
weightedasfollows:
ThreeormoreExams
80%
Homework,Quizzes,Participation,ClassroomDemeanor* 20%
*Textmessagingandconstantchatteringduringclassisbothrudeandunacceptable.Iwilldeductat
leastapartiallettergrade(one+,-)fromyourfinalgradeifyouengageinthisbehavior.
Assignmentoffinalgrades:Basedontheaverageoftheabovecomponents,gradeswillbeassigned
accordingtothefollowingschedule.
Final
Final
Average Grade
93-100
A
90-92
A-
87-89
B+
83-86
B
80-82
B-
77-79
C+
73-76
C
70-72
C-
60-69
D
59and
F
below
Other Course Policies:
Academic integrity: Exceptforassignmentsthatspecificallycallforcollaborationwith
classmates,Iexpectallofyourworktobetheexclusiveproductofyourownefforts.Youmayconsult
withmeregardinghomeworkorexams,butyoumaynotcollaboratewithanyoneelse.Shouldyou
submitanyworkthatisnotyourown,IwillgiveyouagradeofFforthecourseandreportyourbehavior
totheVicePresidentforAcademicAffairs.
Acceptableexcusesformissingexamsarelimitedtothefollowing:
Seriousmedicalconditionverifiedbyadoctor’sletter.
Verified,seriousfamilyemergency.
Iwillkeepallexams.YoumayseeyourexamsduringclassonthedayIreturnthem.Ifyouarenotin
attendanceonthatday,youcannotseeyourexam.
Accessibility Statement
Westminster College actively strives for the full inclusion of all our students. Students with
disabilities who require access solutions for environmental or curricular barriers should contact
Faith Craig, Director of Disability Resources, located in 209 Thompson-Clark Hall. phone: 724946-7192 e-mail: [email protected]
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