1 COURSE
INSTRUCTOR
TERM
LECTURE DAYS
LECTURE TIMES
LECTURE LOCATIONS
Econ. 341 A2 (87003): Money and Banking Chetan Dave
Fall 2020
TR 11:00am-12:20pm
INSTRUCTOR’S CONTACT INFORMATION Office Phone (780) 492-7645 Office Location Tory Building 9-18 Email Address [email protected]
Office Hours TR, 2:00-3:00pm, email appointment is best COURSE INFORMATION
Pre-requisites ECON 282 or consent of Department. Students may not receive credit for both ECON 341 and FIN 414. The prerequisite will be enforced.
Students that lack the prerequisite will be deregistered from the class.
Course Description Econ 341 studies money, interest rates, 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.
Textbooks
Teaching Methods
Mishkin, F. and S. Apostolos, The Economics of Money, Banking and Financial Markets, 7th edition, Pearson Education Canada, ISBN-13:
9780134821221. MyLab version NOT required.
Notes: This textbook is required, U.S. editions are not recommended and MyEconLab or MyLab Economics will not be used.
This is a lecture based course and class participation from students is strongly encouraged.
2 COURSE POLICIES
Grading Criteria Each of the four exams in this course count for 25% of the final grade.
Grades are based solely on exams; there will be no extra credit or additional work in exchange for grades. Previous exams will be made available via e-class. The approximate numeric to letter grade mapping, with some discretion to adjust the final boundaries being left to the instructor, is as follows.
Numeric Grade Letter Grade
90-100 A+
85-89 A
80-84 A-
77-79 B+
74-76 B
70-73 B-
67-69 C+
64-66 C
60-63 C-
57-59 D+
54-56 D
50-53 D-
0-49 F
Attendance and Conduct
Additional Resources
University Policy and Notices
Students are expected to attend class regularly and be prepared to participate. Students will have completed the assigned readings and other materials ahead of time. Students are expected to treat everyone in the classroom with respect. Please remember to turn off or set your cellular phones to vibrate. You are responsible for any announcements made or information given during class; exams will be based on lecture material and required readings.
The Student Success Centre (www.studentsuccess.ualberta.ca) offers a variety of learning resources, including a variety of workshops in learning effective study and exam strategies. Sessions are available in person and online, for a modest fee.
Policy about course outlines can be found in the Evaluation Procedures and Grading System section of the University Calendar. 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 Behavior (online at
3 Territorial
Statement
Sexual Violence Policy
www.governance.ualberta.ca) and avoid any behavior 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 (http://www.ualberta.ca/current- students/academic-resources/academic-integrity). Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as part of an approved accommodation plan. Student or instructor content, digital or otherwise, created and/or used within the context of the course is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s).
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.
It is the policy of the University of Alberta that sexual violence committed by any member of the University community is prohibited and constitutes misconduct. Resources and more information can be found at https://www.ualberta.ca/campus-life/sexual-violence.
4 COURSE OUTLINE
Topic Textbook Chapter
Introduction 1,2
What is Money? 3
Understanding Interest Rates 4
The Behavior of Interest Rates 5
Risk and Term Structure 6
Exam 1, due October 2, 2020, 5pm Edmonton time 1-6, inclusive
Stocks, Rational Expectations and the EMH 7
An Economic Analysis of Financial Structure 8
Financial Crises 9
Exam 2, due October 30, 2020, 5pm Edmonton time 7-9, inclusive Banking and the Management of Banking Institutions 13
Central Banks and the Bank of Canada 15
Exam 3, due November 17, 2020, 5pm Edmonton time 13-15, inclusive
The Money Supply Process 16
Tools of Monetary Policy 17
Conduct of Monetary Policy 18
The Foreign Exchange Market 19
The International Financial System 20
Exam 4, due December 4, 2020, 5pm Edmonton time 16-20, inclusive
