Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

Economics 3371A 550 HUC 

Des McKeon  

Wed 11:30 -12:30 and Fri 11:30-1:30 - Classroom W106

Office: A8

Office Hours A8 Tuesday 4-5

Email [email protected]

Course description.

This course will examine the role of money in the economy.

We will begin by establishing the demand for money using an overlapping generations framework followed by an investigation into the behavior of interest rates.

Next, we will investigate the nature of banking and risk management followed by the role of central banking and the tools and conduct of monetary policy           

Course objectives

-Students will become familiar with the financial system and its day-to-day operation.

- Student will be able to critically evaluate the policies of Central Banks.

- Students will gain an understanding of the link between the financial markets and the macroeconomy.

- Students will gain insight into the banking industry and its industrial organization.

Course Materials.

The course has a main text Mishkin, Frederic and Apostolos Serletis, The Economics of Money, Banking, and Financial Markets, Canadian Edition 8th Edition

 The main text is recommended but not required.  Supplementary material may be taken from:

Champ, Bruce, Scott Freeman Modeling Monetary Economies second edition, Cambridge University Press 2001. (or any other edition)

Fender, John Monetary Policy, Wiley 2012.

Walsh, Carl E. Monetary Theory and Policy, MIT Press 1998

In addition, there are some excellent websites from central banks that contain research articles on monetary economics.

For example, we will often use the Bank of Canada site (www. bankofcanada.ca) as a source of material.

Assessment.

There will be two midterm tests worth 30% each, a group assignment worth 30% and participation worth 10%. Please note participation marks may entail short quizzes given in class or discussions on assigned readings. There are no make-up assignments for missed classroom assessments.

The group assignment consists of selecting, summarizing and reporting on a journal article. The rationale for the assignment is to provide experience in reading professional/ academic articles in monetary economics. This is a skill that is essential for graduate study or for a professional career.   

The assignment consists of two parts. The first part is a written submission (ONE per group) containing a summary of the article that explains its salient points.  The second part consists of presenting the summarized version in a seminar.

Your choice of article must come from a mainstream professional journal, a paper from the research department of a central bank or from a handbook or other source of collected works.

Also, your choice of article must be approved by the instructor. Failure to get approval will result in the article not being accepted.

Students should try and select their group early in the term.  

Important Dates (Tentative)

Tests

Midterm I …………………...... Oct 13

Midterm II……………………...Nov17   

Group presentations……………begin November 22

Course outline

Introduction to an OLG monetary model- ………………...  (Notes).

Behaviour of Interest rates…………………………………  Chapters 4, 5*

Term structure and Yield Curve……………………………  Chapter 6*

Stock Markets and EMH…………………………………...  Chapter 7*

Financial crisis, Banking and risk management…………      Chapters 9,10,12,13*   

Multiple Deposit Creation…………………………………   Chapter 15*

Money Supply……………………………………………     Chapter 15*

Tools and Conduct of Monetary Policy*………………….   Chapters 16, 17*

The Demand for Money* …………………………………   Chapter 20*

Monetary Policy Theory*…………………… ……… ….     Chapters 22, 24*

Expectations Theories………………………………………  Chapter 25*

The Transmission Mechanisms*……………………………. Chapter 26*

* These chapters refer to the Miskin text. Extra material may be added.  Anything covered in class may be use as the basis for exam questions. Not all class material will be posted on OWL

PLEASE NOTE.  

THIS IS A TENTATIVE OUTLINE ADDITONS AND/OR DELETION OF MATERIAL MAY OCCUR AS THE COURSE PROGRESSES. IT IS INCUMBENT ON ALL PARTICIPANTS TO KEEP INFORMED OF ANY CHANGES.

The pace of the course is also flexible.  

 Attendance

Attendance at lectures is required and part (but not all) of your participation mark is based on attendance and any in-class quizzes or exercises or discussions. I do not hand out lecture notes for missed classes.

N.B. Make up policy.

If and only if, the instructor gets notification prior to the test date will any makeup be considered. Furthermore, the instructor WILL NOT issue a makeup exam UNLESS academic counselling confirms that the student was incapable of writing the original test on the original date.

Make tests may significantly differ in format and in content from the regularly scheduled exam.  

Make up tests are a serious matter and students should not request a makeup unless a situation is extremely serious.

In the event a make- up is granted, there will be ONE date made available. If the student cannot write on the designated date, then no further make up will be given during the term.

The student will be required to write an exam on the makeup date after or during the final exam period. Until ALL courses requirements are met within the appropriate timeframe, an “incomplete” will appear on the student’s transcript.