Econ 215 money and banking(queens college) 2012 fall term


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Econ 215 money and banking(queens college) 2012 fall term

  1. 1. Syllabus ECO215 MONEY AND BANKING Queens College Fall 2012 Instructor: Daniel Hwang, Ph.D. Class Hours: M & W 1:40-2:55 (KH 313), 3:05-4:20 (Rathaus 210), 4:30-5:45 (PH 152) Office Hours: W 12:30-1:30pm, PH 300 E-mail: Course Description This course will focus on comprehensive contents of monetary theory and monetary policy. Two major topics are: (1) Central banking and its conduct of monetary policy and (2) modern monetary theory – the study of the dynamic interaction of inflation with economic activity, using a dynamic aggregate demand and supply model. Textbook: F.S. Mishkin, The Economics of Money, Banking and Financial Markets, Addison Wesley, 10th edition. Lecture Notes: The notes for each lecture will be posted on Blackboard before each class. You are expected to print and bring the lecture notes in each class. What’s New in the Tenth Edition (from the textbook) – The following 5 chapters are completely rewritten!!! (1) A Buildup of the Dynamic AD/AS model  Chapter 20 develops the first building block of AD/AS model, the IS curve.  Chapter 21 describes how monetary policymakers set real interest rates with the monetary policy (MP) curve. It then uses the MP curve to derive the dynamic AD curve.  Chapter 22 derives the SRAS and LRAS curves and then puts all of them together with AD curve to develop the dynamic AD/AS model. This model is then put to use with numerous applications analyzing business cycle fluctuations in the U.S. and in foreign countries. (2) A Dynamic Approach to Monetary Theory  Chapter 23 examines the theory of monetary policy and helps understand how monetary policymakers can respond to shocks to the economy in order to stabilize both inflation and economic activity.  Chapter 24 discusses the role of expectations in monetary policy and the role of credibility in producing good policy outcomes. (3) The Interaction of Finance and Monetary Theory  This book is the first textbook that responds to the challenges raised by critics of monetary theory by bringing finance directly into the AD/AS model.
  2. 2. Tentative CLASS SCHEDULE: Weeks Chapters HW Assignments Week 1 Ch.4 Understanding Interest Rates Ch.5 The Behavior of Interest Rates Ch.4 – 14, 17, 18, 21, 24 Ch.5 – 1, 4, 11, 18, 19, 21, 22 Week 2 Ch. 13 Central Banks and the Federal Reserve System Ch.14 The Money Supply Process Ch.13 – 14, 15, 22, 23, 24 Ch. 14 – 1, 3, 5, 8, 14, 15, 18, 21, 25 Week 3 Ch. 15 Tools of Monetary Policy Ch.15 – 8, 9, 11, 15, 18, 20, 21, 25 Week 4 Ch.16 The Conduct of Monetary Policy: Strategy and Tactics Ch.16 – 5, 11, 12, 19, 21, 23, 25 Week 5 Test 1 Week 6 Ch.19 Quantity Theory, Inflation, and The Demand for Money Ch.19 – 14, 17, 21, 22, 23, 24 Week 7 Ch. 20 The IS Model Ch.20 – 8, 9, 14, 18, 20, 21, 23, 24 Week 8 Ch. 21 Monetary Policy and Aggregate Demand Curves Ch.21 – 6, 7, 13, 19, 23, 24 Week 9 Ch. 22 Aggregate Demand and Supply Analysis Ch.22 – 3, 6, 12, 14, 21, 24, 25 Week 10 Test 2 Week 11 Ch.23 Monetary Policy Theory Ch.23 – 3, 8, 12, 15, 19, 21, 22 Week 12 Ch. 24 The Role of Expectations in Monetary Policy Ch.24 – 3, 14, 17, 22, 24 Week 13 Ch.25 Transmission Mechanisms of Monetary Policy Ch.25 – 1, 2, 4, 7, 13, 14, 21 Week 14 Ch.17 & 18 International Finance and Monetary Policy Week 15 Test 3
  3. 3. Grading and Exams: The grade will be based on Homework Assignments (=class Participation) and three exams. The course grade is determined as follows: Participation (= Assignments) (10%), Three Exams (Each 30%). The assignments will be Questions and Applied Problems at the end of each chapter. Homework Assignment will be given out in class. The purpose of the assignments is to let you gauge your understanding of the material being covered in the class. The assignments will also prepare you for the exams. Make every effort to go over and answer the assigned assignment. The due date (hand-in) is the next class day. Handing it in after the due date will reduce the grade by half. Exam 1 30 Points Exam 2 30 Points Exam 3 30 Points HW Assignments (Participation) 10 Points Total Points 100 points Important information on grading and exams: - All exams are closed book exams. - The final letter grade for the course will be based on individual mastery of the course material as displayed by the overall score and will be curved. - Exams will be a combination of multiple-choice, analytical, and short-essay- type questions. Anything that appears in homework problem sets and lecture notes is fair game on the exams. - While there is no make up for a bad performance on an exam, upward trend in exam performance over the semester is considered favorably while assigning the Final letter grade. - There is no make-up midterm exam. Medical problems, family emergencies and university excused absences are the only acceptable reasons for missing an exam. You must get in touch with me as soon as possible in such cases and schedule a make-up exam. The student must also be prepared to provide supporting documents – such as a letter from the physician, note from a family member or a university authority. All unexcused absences from exams will automatically earn a zero. - Participation: You are expected to attend class, follow the lectures and participate in class discussions.
  4. 4. Attendance: Due to the technical nature of the material, attendance and participation in class discussion is a high priority. These will determine your ability to succeed on the examinations and in class projects. I expect you to attend class on a regular basis, although there is no explicit grade for attendance. I shall check your attendance in class randomly. Tutoring: The Tutoring Center offers individual learning consultations, study group assistance, or handouts and books on study skills. The tutoring schedules will be posted. To learn more about resources available through the Learning Center you are encouraged to drop by the free tutoring center in the KH or visit their website. Special Assistance: If you have a documented disability and anticipate needing accommodations in this course, please make arrangements to meet with me very soon. Please request that a Disability Resources staff send me a SAAR form verifying your disability and specifying the accommodation you will need. Request must be received and approved (including instructor approval) at least one week before the necessary accommodation. All relevant information will be kept strictly confidential.