This course introduces key concepts, principles, and models in economics and finance of money. It is designed for talented youth at the Johns Hopkins University to better study the world of money and to make scientific decisions. Mathematics is applied when it is helpful to simplify the matter and necessary in calculation. This course covers riveting topics on the evolution of money, financial planning, banking system, monetary and fiscal policy, and financial crisis; it teaches fundamental skills in quantitative reasoning, economic modeling, data analysis, presentation, and public speaking and debate.

Objectives

After completing this course and assignments, students should be able to 

1) Explain key concepts and ideas in economics and finance of money

2) Apply price/money/interest theory to a wide range of economic phenomena

3) Develop basic quantitative skills in analyzing economic and financial data

4) Participate in research-based presentations and public policy debates

5) Obtain funding and complete a business project with team members 

Topics

Week 1: Economics of Money (Basics of Money, Price/Money/Interest Theory)

Week 2: Finance of Money (Personal and Corporate Finance, Financial Markets)        

Week 3: Public Policy of Money (Monetary and Fiscal Policy, Financial Crisis)

Activities

Week 1: Research, Presentations, Debate

Week 2: Investment and Business Projects

Week 3: Monetary and Fiscal Policy Debates

Contents

I. Economics of Money

1. ABC of Money

a. What is and why Money?

b. What is Money good for?

c. Evolution and Future of Money

2. Microeconomics

a. The Opportunity Cost

b. The Demand and Supply Model

c. Income, Wealth, and Living Costs

d. Consumption, Investment, and Saving

3. Macroeconomics

a. Money and Price

b. Money and Inflation

c. Nominal and Real Values

d. Quantity Theory of Money

4. International Economics

a. Currency and Exchange Rate

b. International Trade and Investment

c. The Foreign Exchange Rate Market

d. Demand-Supply Model of Exchange Rate

II. Finance of Money

1. Theory of Interest

a. What are Interest and Interest Rate?

b. Determination of Interest Rates

c. Risk and Term Structures

2. Personal finance

a. Simple and Compound Interest;

b. Annuity, Perpetuity, and Retirement Plans

b. Credit Card, Student Loan, and Mortgages

c. Dealing with Government Taxes

3. Financial Markets and Instruments

a. Overview of Financial Markets

b. Bonds, Stocks, and Mutual Funds

c. Financial Derivatives and Engineering

4. Business and Corporate Finance

a. Accounting and Financial Statements

b. Project Evaluation and Financial Cost

c. Capital Budgeting and Investment Decisions

III. Public Policy of Money

1. Banking System and Monetary Policy

a. Banks, Credits, and Money Supply

b. Fractional Reserve System

c. Banks, Leverage, and Runs

d. Monetary Policy Goals and Tools

2. Public Finance and Fiscal Policy

a. Government Revenue and Expenses

b. Government Deficits and Debts

c. Fiscal Policy and Tax Reforms

3. Financial Crisis

a. Overview of the 2007-2009 Financial Crisis

b. Aftermath and Causes of the Financial Crisis

c. Government Response and Financial Reforms