ECON 341-B1: Money and Banking

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UNIVERSITY OF ALBERTA Department of Economics ECON 341-B1: Money and Banking

Winter 2020 Course Outline

Instructor: H. Huang

Class Schedule: M W F 9:00AM - 9:50AM Lecture Room: T B 38

Office hours: M W 10:00-11:00am, and by appointment

E-mail: [email protected] (Please use it only for making appointments)

Office: Tory 9 – 14

Course Description and Objective: Econ 341 studies money, interest rates and other financial prices, financial institutions, international finance and central banking. By the end of the term, it is hoped that students will have a good understanding of the financial market, the banking system and the monetary policy.

Prerequisite: ECON 282 or consent of Department. Students may not receive credit for both ECON 341 and FIN 414.

Textbook: The Economics of Money, Banking and Financial Markets, by Frederic S.

Mishkin and Apostolos Serletis (Pearson Education Canada), the 6th, 5th, or 4th Canadian edition. U.S. editions are not recommended. MyEconLab or MyLab Economics is not used.

Course Outline:

1. Introduction

1.1 An Overview of the Financial System Chapter 2 1.2 What is Money? Chapter 3 2. Financial Markets

2.1 Understanding Interest Rates Chapter 4 2.2 The Behaviour of Interest Rates Chapter 5 2.3 The Risk and Term Structure of Interest Rates Chapter 6 2.4 The Stock Market and the Theory of Rational Expectations, and the

Efficient Market Hypothesis Chapter 7 3. Financial Institutions

3.1 An Economic Analysis of Financial Structure Chapter 8

3.2 Financial Crises Chapter 9

3.3 Banking and the Management of Banking Institutions Chapter 13 (Chapter 12 if 6th edition) 4. Central Banking and the Conduct of Monetary Policy

4.1 Central Banks and the Bank of Canada Chapter 15

(Chapter 14 if 6th edition)

4.2 The Money Supply Process Chapter 16

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4.3 Tools of Monetary Policy Chapter 17

4.4 Conduct of Monetary Policy: Strategy and Tactics Chapter 18

5. International Finance

5.1 The Foreign Exchange Market Chapter 19 (Chapter 18 if 6th edition) 5.2 The International Financial system Chapter 20

Evaluation: Students will be evaluated on the basis of two assignments, one midterm exam and one final exam. Letter grades are based on a combination of absolute achievement and ranking in a class.

Assignment #1: Weight 14%. Students must submit the assignment to the Department of Economics General Office (8 floor, Tory) before it closes on Feb 3. A late assignment will not be graded.

Midterm Exam: Weight: 32% Feb 14 (in class)

Assignment #2: Weight 14%. Students must submit the assignment to the Department of Economics General Office (8 floor, Tory) before it closes on March 27. A late assignment will not be graded.

Final Exam: Weight: 40% Tentative final-exam date: 2:00 p.m.

April 21. Classroom: TBA

The regular final exam is not cumulative, and is 2 hours in length. A student who misses the midterm exam will receive an extra set of questions to make up for the missed midterm, and will have 2 hours and 50 minutes to work on the regular exam plus the extra questions.

All exams are closed-book. No notes can be consulted during the exams.

Attendance is expected. If you miss a class, it is your responsibility to acquire the missed notes from other class members.

Missed Assignments

A late assignment will not be graded, and is treated as a missed assignment. There is no deferred assignment.

Missed assignments: Missed assignments will receive a mark of zero. A student who has missed an assignment for medical reasons must apply to the instructor, within a week from the missed due date, for allocating the assignment’s weight to the final exam. The application will not be approved if a student has already missed one assignment or the midterm exam.

Missed/deferred exams

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Please refer to the University Calendar to determine acceptable excuses for missing a term exam.

A student who has missed a final exam because of incapacitating mental and/or physical illness, severe domestic affliction or for circumstances as described in the University’s Discrimination, Harassement and Duty to Accommodate Policy (including religious belief) may apply for a deferred exam. The instructor does not have the authority to approve such applications. The applications should be directed to a student's own Faculty office. The deferred final exam is 2 hours in length, and starts from 1:30pm on May 29.

Exam room: TBA.

A student who misses the midterm exam cannot apply for a deferred final exam.

According to the University Calendar, Section 23.3(2)e, a deferred exam will not be approved if a student, excluding the final exam, has completed less than half of the assigned work.

Other notes:

The Department of Economics General Office office hours are 8-4 PM, CLOSED from 12-1 PM.

The dates of the Winter reading week: February 17-21.

Resources that students may want to access, available at http://www.ualberta.ca/current- students:

Accessibility Resources (formerly Student Accessibility Services): If you have a condition that may require some classroom or exam modifications, please contact Accessibility Resources to obtain a determination as to what accommodations should be made.

Academic Success Centre: The Academic Success Centre offers a variety of learning resources, including a variety of workshops in learning effective study and exam strategies.

Centre for Writers: The Centre for Writers offers free one-on-one writing

coaching to all students. Students can request consultation for a writing project at any stage of development.

Policy and Regulations:

Territorial Statement: “The University of Alberta acknowledges that we are located on Treaty 6 territory, and respects the histories, languages, and cultures of the First Nations, Métis, Inuit, and all First Peoples of Canada, whose presence continues to enrich our vibrant community.”

Learning and working environment: “The Faculty of Arts is committed to ensuring that all students, faculty and staff are able to work and study in an environment that is safe

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and free from discrimination and harassment. It does not tolerate behaviour that undermines that environment. ”

“Policy about course outlines can be found in ' 23.4(2) of the University Calendar.” (GFC 29 SEP 2003).

“The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at www.ualberta.ca/secretariat/appeals.htm) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or

expulsion from the University.” (GFC 29 SEP 2003)

Students with special needs (University Calendar §25.2):

Students with disabilities or special needs that might interfere with their performance should contact the professor at the beginning of the course with the appropriate

documentation. Every effort will be made to accommodate such students, but in all cases prior arrangements must be made to ensure that any special needs can be met in a timely fashion and in such a way that the rest of the class is not put at an unfair disadvantage.

Exam arrangements: SSDS (Specialized Support and Disability Services) and the student, with the approval of the course instructor, determine exam accommodations.

Assessments and/or documentation of the need for accommodation are required. At the beginning of each term, the student meets with instructors to review the exam

arrangements which will be used. They provide a “Letter of Introduction” from SSDS verifying the nature of the accommodations required due to the disability. A few weeks before each exam, the student completes an “Exam Schedule” form, for SSDS, outlining scheduled exam dates, times, etc. The student then takes an “Exam Instructions and Authorization” form to the instructor. The instructor is asked to complete the form and enclose it with the exam and arrange to have it delivered or mailed to SSDS. In

administering exams, SSDS follows university protocol and only makes accommodations as required due to the disability. Exams are usually set to overlap with the time the professor has set the in-class exams.

Note 1: The Code of Student Behaviour is published in the Calendar.

Note 2: Check out Section 30.3.2 in the General Faculties Council Policy Manual (is posted on the course WebCT site).

EXCERPTS FROM THE CODE OF STUDENT BEHAVIOUR

FOR REVIEW WITH EACH CLASS AT THE BEGINNING OF EVERY TERM Procedures for Instructors Regarding

Plagiarism, Cheating,

Misrepresentation of Facts and Participation in an Offence The following procedures are drawn from the Code of Student

Possible Sanctions

One or more of the following sanctions given in 30.4.3 (2) and (3) of the Code are commonly

used for plagiarism, cheating, participation in an offence, and misrepresentation of facts.

30.4.3(2) a.i A mark reduction or a mark of

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guidelines summarize what instructors must do when they have reason to believe that a student has plagiarized, cheated, misrepresented facts or participated in an offence. If you have questions about these guidelines, or about the policies, please talk with the senior administrator in your Faculty responsible for dealing with student discipline—usually an Associate Dean – or the Appeals Coordinator, University Governance (2-2655).

30.5.4 Procedures for Instructors in Cases Respecting Inappropriate Academic Behaviour

30.5.4(1) When an Instructor believes that a Student may have committed an Inappropriate Academic Behaviour Offence [30.3.2] or that there has been Misrepresentation of Facts [30.3.6(4)] or

Participation in an Offence [30.3.6(5)] in cases respecting Inappropriate Academic Behaviour in the course that he or she instructs, the Instructor will meet with the Student. Before such a meeting, the Instructor shall inform the Student of the purpose of the meeting. In the event that the Student refuses or fails to meet with the Instructor within a reasonable period of time specified by the Instructor, the Instructor shall, taking into account the available information, decide whether a report to the Dean is warranted.

(CLRC 30 MAY 2002) (EXEC 7 APR 2003) (CLRC 27 NOV 2003) 30.5.4(2) If the Instructor believes there has been a violation of the Code, the Instructor shall, as soon as possible after the event occurred, report that violation to the Dean and provide a written statement of the details of the case. The instructor may also include a recommendation for sanction. (CLRC 27 NOV 2003).

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30.4.3(2) a.ii Reduction of a grade in a course

30.4.3(2) a.iii A grade of F for a course.

30.4.3(2) a.iv A remark on a transcript of 8 (or 9 for failing graduate student grades),

indicating Inappropriate Academic

Behaviour in addition to 30.4.3(2)a.i,

30.4.3(2)a.ii, 30.4.3(2)a.iii

30.4.3(3) b Expulsion

30.4.3(3) c Suspension

The following sanctions may be used in rare cases.

30.4.3(3) e Suspension of a Degree already

awarded

30.4.3(3) f Rescission of a Degree already

awarded

30.6.1 Initiation of an Appeal

30.6.1(1) When a Student has been found to have committed an offence under the Code of Student Behaviour or an Applicant is found to have committed an offence under the Code of Applicant Behaviour (Section 11.8 of the GFC Policy Manual), whether or not that Student or Applicant has been given a sanction, the Student or Applicant may appeal that decision, except in the case of a decision of the Discipline Officer under 30.5.6(2)e.ii, which remains final and is not subject to appeal. In cases where a severe sanction has been recommended to the Discipline Officer, once the student receives the final decision of the Discipline Officer, the student can appeal the decisions of both Dean and the Discipline Officer at the same time. The written appeal must be presented to the Appeals Co-ordinator in the University Secretariat within 15 Working Days of the deemed receipt of the decision by the Student or Applicant. The finding that an offence has been committed, the sanction imposed or both may form the basis of appeal. The written appeal must also state the full grounds of appeal and be signed by the Appellant. The appeal shall be heard by the UAB. (CLRC 30 MAY 2002) (CLRC 25 SEP 2003) (EXEC 01 MAY 2006) (GFC 24 SEP 2007) (BEAC 17 OCT 2007)

__________________________________________

DR LYNN K. PENROD

CHAIR, GFC CAMPUS LAW REVIEW COMMITTEE

________________________________________

DR CARL G. AMRHEIN

PROVOST AND VICE-PRESIDENT (ACADEMIC)

Amendments to the Code of Student Behavior occur throughout the year. For the most recent version of the Code, visit the University Secretariat website at

http://www.uofaweb.ualberta.ca/secretariat/