Dr. Ronald R. Daigle Money, Credit, and BankingPRIVATE
Email: daigle@ccsu.edu Fall 2007
Telephone: (860) 832-2726 (office)
(860) 832-2725 (Economics Department secretary)
Office Hours:
Monday, Wednesday and Friday: 11:00 - 1:45 a.m.
2:00 - 3:00 p.m.
Other times by appointment.
Course Objectives:
- To survey the essential characteristics of financial markets and financial institutions.
- To examine how interest rates are determined.
- To examine how banks manage their assets and liabilities to make a profit.
- To study the development of the U.S. banking system.
- To investigate factors which have contributed to recent financial innovations.
- To examine the impact of financial innovations on financial markets and institutions.
- To review the structure and regulation of banks.
- To study the process of money creation.
- To examine how the Federal Reserve System conducts monetary policy.
Required Text: Frederic S. Miskin, The Economics of Money, Banking, and Financial Markets, 8th edition, New York: Pearson Addison Wesley, Inc., 2007.
Study Guide: Edward Gamber, David Hakes, and Frederic S. Mishkin, Study Guide to accompany The Economics of Money, Banking, and Financial Markets, 8th ed., New York: Pearson Addison Wesley, Inc., 2007.
Recommended reading: The Wall Street Journal, Business Week, and Fortune.
Students with Special Needs:
If you need course adaptations or accommodations because of a disability, if you have emergency medical information to share with me, or if you need special arrangements in case the building must be evacuated, please speak with me as soon as possible.
Course Policies:
Homework assignments: Reading and written assignments will be announced each class period. Written assignments will include end-of-chapter questions from the textbook, exercises consisting of problems and short essay questions, and Web-based research. Two homework assignments will be graded and represent ten (10) percent of your final grade. Assignments will be accepted no later than the due date.
Class Discussions: Students are strongly encouraged to participate in class discussions, which will focus on textbook material and current issues that affect financial markets and institutions. Also, the Federal Reserve System's monetary policies and regulations and how they affect banks, credit markets, and the economy will be examined. Class participation will make up twenty (20) percent of your final grade.
Examinations: There will be three examinations during the semester and a final examination. The final examination will be partially cumulative. Examinations will account for seventy (70) percent of your final grade.
Examination Make-up policy: You are expected to take all examinations on the scheduled dates. If you know in advance that you will not be able to attend class on the date of a scheduled exam, please speak with me before the exam.
If you miss an examination due to illness or an unforeseen event, please speak with me on the telephone on the day of the exam or as soon as possible. A voice mail or email message alone is not acceptable.
A make-up exam will not be given for a scheduled examination unless arrangements are made in advance. Subject to my discretion, you may have to provide written validation to be excused from the examination. Failure to take an examination will result in a grade of zero.
Final course grades will be determined as follows:
Three (3) semester exams 50%
Final exam 20%
Class participation 20%
Homework assignments 10%
COURSE SYLLABUS
Why Study Money, Banking, and Financial Markets? Chapter 1 (Also, Appendix to Chapter 1 & pp. 561-562.)
An Overview of the Financial System Chapter 2
What is Money? Chapter 3
Understanding Interest Rates Chapter 4
The Behavior of Interest Rates Chapter 5
Banking and the Management of Financial Institutions Chapter 9
The Banking Industry: Structure and Competition Chapter 10
Economic Analysis of Banking Regulation** Chapter 11**
Exam 3
Structure of Central Banks and the Federal Reserve System Chapter 12
Multiple Deposit Creation and the Money Supply Process Chapter 13
Determinants of the Money Supply Chapter 14
Tools of Monetary Policy Chapter 15
What Should Central Banks Do? Monetary Policy Goals, Chapter 16**
Strategy and Tactics**
Final Exam
**: If time permits.