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ECO 473 – Spring 2016 – Course Syllabus III. Course Learning Outcomes: Upon successful completion of the course, students should be able to: A.Describe the role of money and financial markets, institutions, and instruments in a market economy. B.Explain the interrelationships between money, inflation, and interest rates. C.Demonstrate how supply and demand analysis in graphical form can be applied to loanable funds markets. D.Explain the time value of money and demonstrate an ability to calculate the values of various financial assets. E.Explain and evaluate the competing theories underlying the term structure of interest rates. F.Describe the function of foreign exchange markets and explain their operation using supply and demand analysis. G.Describe the history, modern structure, and policy tools of the Federal Reserve System. H.Explain in a historical context the development of our current view of the demand for money and how it relates to the supply of money. I.Explain the classical, Keynesian, and monetarist macroeconomic monetary theories.
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ECO 473 – Money & Banking
The W.A. Franke College of BusinessNORTHERN ARIZONA UNIVERSITY
Spring 2016 – 3 credit hours
web page: oak.ucc.nau.edu/dlf/e-mail: [email protected]
Dr. Dennis Foster Seq. #1632 (sec. #2)523-8178, FCB #308 M/W/F 9:10 am – 10:00 amOffice Hours – Monday, 10:00-11:00 am, 4:00-5:00 pm Wednesday, 10:00-11:00 am, 4:00-5:00 pm, and by appointment.
Room #345 - FCB
ECO 473 – Spring 2016 – Course Syllabus
I. Description: History and functions of money and banking institutions; financial markets and interest rates; monetary theory and policy; and international finance. The course provides further depth and extension of many of the topics included in Principles of Macroeconomics, including aggregate supply and demand, national income and output determination, business cycles, monetary policy, international trade and finance, and the role of money in open and closed economies. It assumes that a student has already acquired a familiarity with the basic concepts of these topics. II. Prerequisites: ECO 285 and Junior Status.
ECO 473 – Spring 2016 – Course Syllabus
III. Course Learning Outcomes: Upon successful completion of the course, students should be able to:A. Describe the role of money and financial markets, institutions, and instruments in a
market economy.B. Explain the interrelationships between money, inflation, and interest rates.C. Demonstrate how supply and demand analysis in graphical form can be applied to
loanable funds markets.D. Explain the time value of money and demonstrate an ability to calculate the values of
various financial assets.E. Explain and evaluate the competing theories underlying the term structure of interest
rates.F. Describe the function of foreign exchange markets and explain their operation using
supply and demand analysis.G. Describe the history, modern structure, and policy tools of the Federal Reserve
System.H. Explain in a historical context the development of our current view of the demand for
money and how it relates to the supply of money.I. Explain the classical, Keynesian, and monetarist macroeconomic monetary theories.
ECO 473 – Spring 2016 – Course Syllabus
IV. Course Materials: Materials for this course include the following:
Money and Banking available without author attribution on-line from The Saylor Foundation:
http://www.saylor.org/site/textbooks/Money%20and%20Banking.pdf
The Mystery of Banking by Murray Rothbard (Mises Institute, 2nd edition, 2008) ISBN: 978-1-933550-28-2, or available on-line as a pdf file:
http://mises.org/sites/default/files/Mystery%20of%20Banking_2.pdf The Forgotten Depression by James Grant; (Simon & Schuster, 2014) ISBN: 1-4516-8645-6
The Forgotten Man by Amity Shlaes; (Harper Collins, 2007) ISBN-10: 0-06-621170-0
Meltdown by Thomas E. Woods, Jr. (Regnery, 2009) ISBN-10: 1596985879
ECO 473 – Spring 2016 – Course Syllabus
V. Teaching Methods: Primary teaching methods for this course include class lecture, class discussion and assignments. Also, the use of current technologies will be expected of students.
Learning Process: Each student must take personal responsibility for learning the material presented in this course. Successful students have two common traits that I have observed--a 100% commitment to the class and active study habits. Read and review the assigned material before the lecture. Feel free to consult with me any time regarding your progress in class.
ECO 473 – Spring 2016 – Course Syllabus
VI. Evaluation Tools: Evaluation inputs will include the use written homework, quizzes and multiple exams. The majority of your letter grade will be the result of test scores. Your final letter grade will be based on your performance as follows:
Grading procedure – I will assume that your performance will follow a standard curve:
A: > 90% B: 80% - 89.9% C: 70% - 79.9% D: 60% - 69.9% F: < 59.9%
This curve reflects my general expectations of student performance based on the nature and difficulty of the course and the assignments. Should student performance vary significantly from what I expect, I reserve the right to curve individual exams and/or the final point total. Also, your final grade cannot be lower than the average of your four exams.
3 midterm exams @ 100 pts. = 300 10 of 11 homework assign. @ 25 pts. = 250 1Final exam = 200 Total points possible = 750
ECO 473 – Spring 2016 – Course Syllabus
Make-up Assignment/Exam Policy – A make-up midterm exam will only be given for a serious and documentable excuse, as determined by me. If granted, it will consist of an alternate all essay exam. If you will miss an exam due to an “institutional excuse,” I must be informed ahead of time so that appropriate arrangements can be made.
Missed classes – It is your responsibility to keep up with material in the class. Only if you miss a class as a result of an “Institutional Excuse” will you be given an opportunity to make up any points missed for that class. If you miss a class for any other reason, a zero will be recorded for this missed work.
Late Work Penalty – All homework assignments are due in person at the beginning of the class period. See details below. If you are late to class with an assignment, a penalty will be assessed. No assignments will be accepted after the class period in which they are due.
ECO 473 – Spring 2016 – Course Syllabus
Academic Integrity Policy – Unless otherwise noted, the work you do must be your own work. If not, a grade of zero will be given for the assignment/exam. Repeated offenses will result in expulsion from the class. Acts of academic dishonesty include, but are not limited to, plagiarism, using unauthorized crib notes and copying test/quiz answers from other students. Details on NAU’s policy in this regard can be found here:
https://policy.nau.edu/policy/policy.aspx?num=100601 Other policies can be found in the appendices at the end of this syllabus. Student Conduct Policy – The W.A. Franke College of Business has a student code of conduct that you should be familiar with. It is printed below. Breaches of this code of conduct may result in zero credit for the class period (including homework assignments), at my discretion. Behaviors I find especially egregious are coming into the classroom late, leaving the classroom early, getting up during class and leaving for a short period of time, and inattentiveness.
ECO 473 – Spring 2016 – Course Syllabus
Miscellaneous: Food and beverages are not allowed in the classrooms. Computer laptops, tablets and cell phones must be kept out of sight and turned off unless you have some special circumstance that I need to be aware of. NAU supports and promotes a drug free environment. E-mail me: If you have questions/problems you want to ask about, you may see me during my office hours or schedule an appointment to see me. If you would like, you can also e-mail me with questions that you have. If you do this, please fill in the subject category as follows: mail-ECO473-02-last name. This will help me to react and respond in a timely fashion.
ECO 473 – Spring 2016 – Course Syllabus
Midterm Exams - The dates are February 8, February 29 and March 21. Each exam will consist primarily of multiple choice questions, but may include definitional questions, graphical problems, work problems and short essays, as the case warrants. The multiple choice portion will use Scantron sheets so you will need to bring a pencil. For the rest of the exam you may use a pen, or pencil, and a calculator. You may not share calculators. You may bring in one page of notes, 8.5 x 11 inch, one side only. You will be required to turn this in with your exam. These exams are worth 100 points each. Final Exam - The date is noted on the course outline. This exam will be just be the ‘final midterm’, covering the last portion of the course and following the same protocol outlined above. It will be longer and carries twice the weight as a midterm exam.
ECO 473 – Spring 2016 – Course Syllabus
Homework Assignments – Over the course of the semester there will be 11 homework assignments. Each assignment’s due date is shown on the course outline – H1, H2, H3, et al. These will generally consist of three parts:
1. Answers to take-home quiz (posted on-line) over the assigned readings. [10 pts.]2. An essay assignment, with a word count. [5 pts.]3. An in-class quiz at the beginning of class over the assigned special readings (Grant, Shlaes & Woods). [10 pts.] These must be fully typed out and you must be present at the beginning of class when they are due in order to receive full credit. My intent is to use the beginning of class to discuss your answers. You are free (and encouraged) to make written notes on these papers during the discussion time, after which I will pick them up. Note that this is an individual assignment and the work you turn in must be your own. To provide some flexibility here, I will drop the lowest homework score. At the end of the term, you will have a total of 10 assignments counted, each at 25 points, for a total of 250 possible points.
ECO 473 – Spring 2016 – Course Syllabus
Access to class materials – Homework assignments and the required reading assignments will be posted up on my Money & Banking web page, accessed from my home page at this site:
http://oak.ucc.nau.edu/dlf/default.asp Extra Credit – There will be many specific opportunities for extra credit given for in-class quizzes over special videos (which will not be included in the exams). These are shown on the course syllabus as “ec.” These will be worth up to 50 points. There may be additional opportunities for extra credit, and if so it will be announced in class so that everyone will have the opportunity to participate. I will not offer any extra credit just to individual students.
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Course Outline: Readings:
18-Jan
20-Jan Overview & Introduction to Money
22-Jan Money & Banking Basics I
25-Jan Money & Banking Basics II G 1-4 H1
27-Jan Supply and Demand for Money
29-Jan Review; bonus quiz - Woods/Grant podcast ec
1-Feb Money creation I G 5-9 H2
3-Feb Money creation II
5-Feb Money creation work problems
8-Feb10-Feb Asymmetric Information
12-Feb Banking types
15-Feb The Fed I G 10-16 H3
17-Feb The Fed II
19-Feb Review; bonus quiz - Yellen presentation ec
22-Feb Interest Rates I G 17-20 H4
24-Feb Interest Rates II
26-Feb Interest rate work problems
29-Feb2-Mar Bank structures
4-Mar Banking practices
7-Mar Financial markets & instruments I S 1-3 H5
9-Mar Financial markets & instruments II
11-Mar Bonus quiz over Schiff video due via email ec
Week 2
Week 1MLK holiday
Week 3
Exam #1Week 4
Week 5
Week 6
Week 7
Week 8
Spring Break - March 14-18
Exam #2
Codes for shaded in boxes:
yellow indicates class period is for review/work problems; no new material will be discussed;
green boxes indicate 10 point bonus quiz over additional video assignments;
tan boxes indicate 5 point bonus quiz over additional video assignments;
red box indicates no class meeting (watching the Schiff video is an alternative assignment to class).
ECO
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shaded in boxes:
yellow indicates class period is for review/work problems; no new material will be discussed;
green boxes indicate 10 point bonus quiz over additional video assignments;
tan boxes indicate 5 point bonus quiz over additional video assignments;
red box indicates no class meeting (watching the Schiff video is an alternative assignment to class).
21-Mar Financial regulation S 4-6 H6
23-Mar Financial regulation - Case Study
25-Mar Review; bonus quiz - Forbes/Grant ec
28-Mar30-Mar Central bank history
1-Apr Money demand
4-Apr AS/AD Model I S 7-9 H7
6-Apr AS/AD Model II
8-Apr AS/AD Model work problems/scenarios
11-Apr Foreign Exchange I S 10-15 H8
13-Apr Foreign Exchange II
15-Apr Foreign Exchange work problems
18-Apr Depression of 1921; the gold standard W 1-3 H9
20-Apr The Great Depression
22-Apr Review; bonus quiz over Selgin video ec
25-Apr Austrian Business Cycle Theory I W 4-5 H10
27-Apr Austrian Business Cycle Theory II
29-Apr Review; bonus quiz - Garrison video ec
2-May Current Issues W 6-7 H11
4-May Current Issues
6-May Final review
Spring Break - March 14-18
Week 12
Week 13
Week 9
Week 10Exam #3
Week 14
Week 15
Final Exam (Sec. 2): Wednesday, May 11; 7:30 am - 9:30 am
Week 11
ECO 473 – Money & Banking
The W.A. Franke College of BusinessNORTHERN ARIZONA UNIVERSITY
Spring 2016 – 3 credit hours
web page: oak.ucc.nau.edu/dlf/e-mail: [email protected]
Dr. Dennis Foster Seq. #1632 (sec. #2)523-8178, FCB #308 M/W/F 9:10 am – 10:00 amOffice Hours – Monday, 10:00-11:00 am, 4:00-5:00 pm Wednesday, 10:00-11:00 am, 4:00-5:00 pm, and by appointment.
Room #345 - FCB
