Week |
Readings |
Topics |
Graded Work |
| 1: May 17-20 | Hubbard, Chps. 1, 2
Hubbard, Chps. 3, 4
Hubbard, Chps. 5, 6, 7 |
Introduction. Money: What it is and whence it came. Overview of financial system. The arithmetic of interest rates and asset prices. Portfolio allocation. Determining market interest rates. Risk and term structure of interest rates. |
Homework 1 due on Thursday |
| 2: May 24-27 | Hubbard, Chps. 11, 12
Hubbard, Chps. 13, 14, 15 |
Reducing transactions & information costs. Financial institutions. The business of banking. The banking industry. Banking regulation. |
Exam 1 on Monday Homework 2 due on Thursday Exam 2 on Thursday |
| 3: May 31-June 3 | Memorial Day Holiday Hubbard, Chp. 8 Hubbard, Chps. 25 (omit 668-top of 674; 680-81), 26 (692-96, 700-01 [Real Business Cycles]) Hubbard, Chps. 28, 17 |
Foreign exchange market. Macroeconomic framework. Money and output in the short run. Money and inflation. The money supply process. |
Homework 3 due on Thursday |
| 9: June 6-9 | Hubbard, Chps. 19, 20 Hubbard, Chps. 21, 27 |
Monetary policy tools. Federal Reserve System. Conduct of monetary policy. Channels of monetary policy. |
Exam 3 on Monday Homework 4 due on Wednesday Exam 4 on Thursday |