University Studies Abroad Consortium

Money and Banking

Spring 2004

University Studies Abroad Consortium

Bilbao/Getxo, Spain

Instructor

Bernard Malamud

Professor of Economics, University of Nevada Las Vegas

e-mail:

General Nature of the Course

This course treats the nature of money and the determination of the quantity of money by the public, commercial banks, and the Federal Reserve. The course entails intensive analysis of commercial banking, money and capital markets, interest rate determination, and the foreign sector. Prerequisites: Principles of Microeconomics and Principles of Macroeconomics

Course Objectives

After taking this course, you will understand the important roles played by banks and other financial intermediaries in the national and global economies; the determination of asset prices in financial markets; the ways in which financial institutions operate; and the conduct and impacts of monetary policy. You will gain an appreciation of innovations in financial practice, changes in financial regulation, and interactions between finance and industry. The relevance of economic analysis and policies will become evident to you as you follow events in the international financial sector that unfold during the semester. The importance of finance in the US, Spain, and the EU will be stressed.

Text

Frederic S. Mishkin, Economics of Money, Banking, and Financial Markets, 7th edition, Addison-Wesley, 2004.

Examinations and Grading

Two 150 point classroom exams and a 200 point comprehensive final will be given this semester. You will be able to rewrite your answer to one question on each classroom exam at home. Your score for the question will be the average of your classroom score and your rewrite score. Makeup exams maybe arranged at mutualconvenience if you have a compelling reason to miss a scheduled classroom exam. A makeup exam must be taken before the missed exam is returned to the class. There will be no makeup final.

Approximate Grade Distribution

Average Score

(out of 500 points)

90 %Borderline A-

80Borderline B-

70Borderline C-

60Borderline D-

Attendance and classroom participation will affect your final grade.

Course Outline

Topics, Discussion Problems

Do each “discussion problem” before class. Treat it like homework. While it will not be collected, you will be expected to participate in its discussion.

May 10

Financial Markets

Classroom Exam, Chapters 1 – 7,19

Monetary Policy

Spring Break

Comprehensive Final Examination