Syllabus for Econ 353

Money, Banking, and Financial Institutions

Last Updated: 2 May 2011

Course Offering: Spring Semester 2011
Meeting Time: TR 12:40-2pm
Meeting Place: Ross Hall, Room 0124

Course Instructor:
Professor Leigh Tesfatsion
Office: 375 Heady Hall
Telephone: 294-7318 (Secretary)
http://www.econ.iastate.edu/tesfatsi/
tesfatsi AT iastate.edu

Instructor's Office and Office Hours:
375 Heady Hall
Tuesdays 2:10-3:40pm, and by appointment

Teaching Assistant's Contact Info and Office Hours:
Ms. Kate Sinitskaya
Office: 180B Heady Hall
Office Tel: (515) 294-5895
Office Hours: M 11-12, Thurs 2:10-3, and by appointment
esin AT iastate.edu

353 Homepage (Mishkin textbook, TA info, Course Objectives, & Grading Policy)
Exercise Info Site
Exam Info Site

Syllabus Table of Contents

Overview of Readings and Assignments

The basic required readings for Econ 353 (Fall 2010) consist of the Mishkin text chapters 1-5, 7-12, and 20-21, plus accompanying on-line chapter notes and in-class discussion materials. All required readings are marked with either one or two asterisks. The required readings marked with a double asterisk (**) will be emphasized in classroom discussion questions as well as on exams and take-home exercises. The required readings marked with only a single asterisk (*) will be given less emphasis in classroom discussion questions and on exams and take-home exercises.

Web links to relevant on-line materials are provided at the end of many of the topic sections for students interested in further study. Browsing these links is recommended but not required. Interested students may also want to access a more extensive list of annotated pointers to on-line resources for macro and financial economics maintained here.

Practice exercises and practice exams are provided for self-help and will not be specifically covered in class. Students are strongly encouraged to work through the practice exercises at the end of each Mishkin text chapter, as well as the on-line practice exercises and practice exams provided below, in order to prepare for the exams and take-home exercises for this course.

Some additional required readings may be incorporated as the course proceeds. Consequently, if you miss any classes, be sure you check the on-line syllabus to ensure you have up-to-date information about required readings. Students who have to miss classes should arrange to obtain class handouts either from other students or from me during my office hours. Notes on specific in-class discussions on missed class days must be obtained from other students in attendance. Any required readings or assignments added to the syllabus subsequent to the first day of classes or updated in content subsequent to their first posting will be marked with a "new" or "updated" icon, respectively, for at least a week. All such changes will also be announced in class.


IMPORTANT GENERAL INSTRUCTIONS: As each assigned Mishkin chapter is successively covered in class, you should plan to download and study the required on-line html notes and/or ppt slides for this chapter ahead of the day(s) scheduled for class discussion of this chapter, along with the assigned Mishkin chapter itself. At the end of the html notes you will find a list of "basic concepts and key issues" that you can use to guide your study. You should also download and think about, in advance, the on-line "key in-class discussion questions" for the assigned Mishkin chapter. On the day(s) the assigned Mishkin chapter is scheduled to be covered in class, please come to class prepared to participate in a class discussion of these "key in-class discussion questions."

Course Topics (Detailed Readings and Assignments)

Section 1. Financial Economics: Fundamental Concepts

Mishkin Chapter 1: Basic Definitions and Empirical Data Overview

Mishkin Chapter 2: Overview of the Financial System

Mishkin Chapter 3: What is Money?

  • ** Answer Keys for First Midterm Exam (Thursday, Feb 10): [ Version A, Version B, Version C]

    Section 2. Financial Markets (Domestic and International)

    Mishkin Chapter 4: Understanding Interest Rates

    Mishkin Chapter 5: Behavior of Interest Rates

    Mishkin Chapter 7: Stock Market Pricing

  • ** Answer Keys for Second Midterm Exam (Thursday, March 10): [ Version A, Version B, Version C]

    Mishkin Chapter 20: The Foreign Exchange Market

    Mishkin Chapter 21: The International Financial System

    Section 3. Financial Institutions

    Mishkin Chapter 8: An Economic Analysis of Financial Structure

    Mishkin Chapter 9: Financial Crises and the Subprime Meltdown

    Mishkin Chapter 10: Banking and the Management of Financial Institutions

    Mishkin Chapters 11-12: Banking Industry: Structure, Competition, and Regulation

  • (5/2/2011 ** Answer Keys for Final Exam (Monday, May 2): Version A, Version B

    Appendix A: Midterm Exam Review Materials

    Two midterm exams have been scheduled for Econ 353 in Spring 2011, to be held during regular class hours. The first midterm exam will be held on Thursday, February 10th, and the second midterm exam will be held on Thursday, March 10th. Please refer to the Exam Information Site for important additional information about these two midterm exams.

    A pointer to a midterm exam review guide for Spring 2011 will be provided at the above Exam Information Site at least one week prior to each of the two midterm exams. To give students an advance idea what to expect, pointers to on-line Econ 353 "practice" midterm exams from previous years are provided at the Exam Information Site -- see also below for direct pointers.

    Appendix B: Final Exam Review Materials

    The final exam for Econ 353 in Spring 2011 will be held on Monday, May 2, 12:00-2:00 p.m., in our regular classroom in accordance with the ISU Spring 2011 tentative final exam schedule. Please refer to the Econ 353 Exam Information Site for important additional information about the final exam.

    A pointer to a final exam review guide for Spring 2011 will be provided at the Exam Information Site at least one week prior to final exam week. To give students an advance idea what to expect, pointers to Econ 353 "practice" final exams from previous years are provided at the above Exam Information Site as well as below.

    Copyright © 2011 Leigh Tesfatsion. All Rights Reserved.