This course is an intermediate economics course that teaches money, banking and financial markets, which is designed to promote active learning and develop essential academic skills for each student. It provides students with comprehensive information on the structure, function and evolution of the financial and monetary system. Moreover, it builds a solid foundation for economic analysis and thinking that can last throughout their education and subsequent professional careers. Starting by watching a video ( Global Financial Meltdown http://www.youtube.com/watch?v=l4XfNiqwQDo ) documenting the recent global financial crisis, students will gradually gather scattered and lost pieces into a clear picture about the unfolding and aftermath of the crisis and its far-reaching consequences on the global economy.

Students registered in this course are each assigned four presentations that account for 40% of their overall evaluation. Throughout the course, each student will be assigned different topics and will need to present with slides in less 10 minutes. Topics are exchangeable among students but please make sure to inform me before the presentation date if you decide to exchange. Notice there will be no make-up presentation. If you miss one, you lose 10% credit. Evaluation of the student presentation depends on how well the topics are addressed in a definite, logical and coherent manner. Students may use data, charts, graphs or examples to illustrate the idea and key points. Think about what specific questions needed to be solved and how to make it interesting and clear to the audience when preparing the slides. In-class discussion is strongly encouraged after each presentation. 

After completing this course, students should become familiar with the language used extensively in financial markets. With the background knowledge and analytical framework developed in this course, students should also be able to approach pertinent economic problems intuitively, graphically, mathematically and empirically. Specific study goals include: 

• • Sketch a broad picture of the financial system: its function, structure and history;

  • Master important concepts in macroeconomics and able to interpret major economic indicators;

  • Apply price theory, money theory and interest theory to a variety of phenomena in financial markets;

  • Acquire the essential computer skills in obtaining and processing economic data for research;   

  • Familiarize with major instruments and institutions in various types of financial markets;

  • Apply basic accounting to commercial banking and central banking (balance sheet analysis);

• Model the money supply process with the deposit creation model and money multiplier model;

  • Analyze how various policy and macro factors affect equilibrium in the federal reserve market;

• Understand the Fed’s monetary policy goals, tools, strategy, effects and its transmission mechanism;

  • Develop the analytical framework of 2008 global financial crisis;

  • Present relevant topics in public that follows academic standards.