Money and Banking (SSE303)

MONEY AND BANKING (SSE303) SPRING I, 2017 Syllabus

Instructor: Choon-Shan Lai, Ph.D Office: C-459U Office phone no. : 718-349-4084 Email: [email protected] Office hours: Mon and Wed 2.15-3.15p or by appointment

PREREQUISITES: SSE103 and SSE104

REQUIRED TEXT BOOK: The Economics of Money, Banking, and Financial Markets, 10th Edition, by Frederic S. Mishkin

CATALOGUE DESCRIPTION: This course provides a set of tools to analyze monetary policies, the regulation and supervision of the financial system as well as the implications to the real economy and financial system. It introduces relevant theories with applications to current events and policy debates in a global context.

INSTRUCTIONAL OBJECTIVES: Introduce students to: 1. Monetary policy tools 2. How monetary policies affect the real economy and inflation 3. Various financial institutions and markets 4. Regulations and supervisions of the financial system 5. The relationship among interest rates, monetary policies and financial markets 6. Recent financial crises

PERFORMANCE OBJECTIVES: At the end of this course, students will be able: 1. To explain the use of monetary policy tools. 2. To discuss implications of monetary policies to the real economy and inflation. 3. To understand functioning of various financial markets such as debt and equity markets as well as financial institutions such as banks. 4. To discuss various regulations and supervisions of the financial system. 5. To explain the relationship among interest rates, monetary policies, financial markets 6. To understand basic mechanics of recent financial crises and the role of various stakeholders such as central banks, financial institutions and the government. .

1 GRADING POLICY1: Exam 1 200 Exam 2 200 Quizzes 100 Homework Assignments 150 Participation 50 Final Exam 300 Total 1000 points

GRADING SCALE: >=925 A >=900 A- >=850 B+ >=825 B >=800 B- >=750 C+ >=725 C >=700 C- >=650 D+ >=625 D >=600 D- <600 F

CLASS ATTENDANCE/PARTICIPATION More than 3 unexcused absences may result in a reduction of your grade by one full grade. Good attendance is one factor that counts toward participation but it is not equivalent to class participation. Class participation includes being well-prepared in class so that you will be able to raise and answer questions relevant to the course subject as well as participate in class discussions.

MISSED EXAMS/LATE ASSIGNMENTS

Make-up exams will be given ONLY with legitimate reasons (e.g. death in families, illness, participation in university authorized activities). In all cases, reasonable proofs (doctor’s notes in case of illness, written documents by relevant authorities in case of university activities) must be presented. With the exception of inevitable unusual circumstances, you MUST inform me and provide excuses within 2 days after any of the above missed event for appropriate arrangement to be made. Unless otherwise told, all assignments must be submitted in class. Late assignments will NOT be accepted. There will be six assignments and only the best five count. (That means you can miss one without affecting the grade at all)

Weekly Schedule

1 I reserve the right to make reasonable changes to the grading policy and grading scale. In terms of grading scale, the change will be within 5% margin.

2 Wee Week Activities Important Dates k of 1 3/7 INTRODUCTION Relevant reading: Ch 1,2,3

2 3/14 INTEREST RATES AND FINANCIAL MARKETS Relevant reading: Ch 4

3 3/21 INTEREST RATES AND FINANCIAL MARKETS (continued)

Relevant reading: Ch 5

4 3/28 INTEREST RATES AND FINANCIAL MARKETS (continued) Relevant reading: Ch 6

5 4/4 FINANCIAL CRISIS AND FINANCIAL INSTITUTIONS Relevant reading: Ch 7 and Ch 8

6 4/11 FINANCIAL CRISIS AND FINANCIAL INSTITUTIONS (continued) Relevant reading: Ch 9 and Ch 10

7 4/18 FINANCIAL CRISIS AND FINANCIAL 4/20-4/30 Spring INSTITUTIONS (continued) Recess Relevant reading: Ch 13

8 4/25 4/20-4/30 Spring Recess 4/20-4/30 Spring Recess 9 5/2 CENTRAL BANKS AND MONETARY POLICIES Relevant reading: Ch 14

10 5/9 CENTRAL BANKS AND MONETARY 5/8 Last day to POLICIES (continued) withdraw with a Relevant reading: Ch 14 and 15 “W”

11 5/16 CENTRAL BANKS AND MONETARY 5/16 Last day to POLICIES (continued) withdraw a class Relevant reading: Ch 16 and 17

12 5/23 MONETARY THEORIES

3 Relevant reading: Ch 20

13 5/30 MONETARY THEORIES (continued) 5/29-5/30 No Relevant reading: Ch 21 classes

14 6/6 MONETARY THEORIES(continued) Relevant reading: Ch 21

15 6/13 6/14-6/20 FINAL EXAM 6/13 commencement- no classes

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ACADEMIC INTEGRITY Academic dishonesty is prohibited in the City University of New York and is punishable by penalties of an “F” grade. For details, please refer to http://library.laguardia.edu/files/pdf/academicintegritypolicy.pdf