Iowa State University, Department of Economics
Introduction to Financial Markets
ECON 490 (1 credit)
Spring 2000
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Professor: |
M. KILKENNY Dept of Economics 565 Heady Hall 294-6259
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office hours: |
Tu/Wed 3:-5:00pm or by appt. |
e-mail:
kilkenny@iastate.edu
Text: The Economics of Money, Banking, and Financial Markets (5th Edition, 1998) by Frederic S. Mishkin; Addison Wesley
When:
Where:
Prerequisites: Introductory Microeconomics and Macroeconomics (Econ 101 and Econ 102)
Homepage: http://www.econ.iastate.edu/classes/econ490/kilkenny
Homework: (1) Read assigned material (see attached syllabus). Additional assigned readings will be posted via clickable links from the course webpage. (2) Exercises are posted on the homepage. Assignments are due the each Friday by 3:30pm Monday noon by e-mail to kilkenny@iastate.edu . No late homework is accepted. Graded assignments will be returned via e-mail within one week.
Grading: A 490 course can be taken only P/F. The course grade is based on assignment performance. Students are graded on the material. There is no 'curve.' To pass the course, students must demonstrate mastery of 60% of the assigned material.
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Week |
Topics |
Chapter |
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1/10-14 |
Money and the Macroeconomy: definitions, trends, stylized facts |
Ch 1 |
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1/17-21 |
Financial Instruments: money market, capital market |
Ch 2 |
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1/24-28 |
Rates of Return: discounted present value, yield, nominal/real, capital gains, interest rate risk |
Ch 4 |
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1/31-2/4 |
Asset Demand and Pricing: portfolio choice, risk, diversification, capital asset pricing |
Ch 5 ( & MA4) |
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2/7-11 |
Loanable Funds Market the determination of interest rates and bond prices |
Ch 6 |
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2/14-18 |
Indirect Finance: asymmetric information, adverse selection, moral hazard, principal-agent problems |
Ch 9 |
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