This course overviews the architecture of monetary and financial system, provides analytical frameworks for understanding how the system functions, examines the role of monetary policy, and investigates the causes of financial crisis. The course weights empirical findings and theoretical models equally. Lectures review price/money/interest theory, focusing on the economic intuition and applications. Topics cover the evolution of monetary system, fundamentals of asset pricing, financial markets and instruments, commercial and central banking, financial crisis, public policies and regulations. Throughout the course, registered students are required to complete assignments and exams, participate in research-based presentations or public debates.
Learning Outcomes
After completing this course and assignments, students should be able to
Sketch a broad picture of the monetary system: its origin, function, and evolution
Master key concepts in macroeconomics and be able to interpret economic indicators
Apply price theory, money theory and interest theory to a wide range of market phenomena
Familiarize with major instruments and institutions in various financial markets
Apply accounting principles to commercial and central banking (balance sheet analysis)
Explain credit expansion process with the deposit creation and money multiplier models
Analyze how various macroeconomic and policy factors affect federal reserve market equilibrium
Understand Fed’s monetary policy goals, tools, strategies, effects and transmission mechanism
Develop the analytical frameworks for understanding the 2008 global financial crisis
Acquire the essential quantitative skills in analyzing economic and financial data
Participate in research-based presentations and public debates
It is important for students to provide feedback in time throughout the course to ensure positive learning and teaching experience. If students have trouble keeping up with the class material or the workload, please feel free to contact the instructor. It is the instructor's responsibility to support students to make progress and succeed in the course. Students are strongly encouraged to 1) raise questions and participate in the lecture; 2) provide feedback and suggestions regarding teaching and course organization; 3) solve problem sets and conduct research together; 4) improve the learning and teaching outcomes.
Special accommodations will be given to students with disabilities. Please register in advance with the Office of Disability Services (ODS) in 105 Hewitt for test or classroom accommodations.