Homepage for Econ 353
Money, Banking, and Financial Institutions
- Last Updated: 27 May 2020
Last Taught: Spring Semester 2011
- Course Instructor:
- Professor Leigh Tesfatsion
- Department of Economics
- Iowa State University
- Ames, Iowa 50011-1070
- (515) 294-7318 (Secretary)
tesfatsi AT iastate.edu
353 Syllabus (Readings&Assignments)
Exercise Info Site
Exam Info Site
- Course Meeting Time and Place:
- TR 12:40-2:00pm, Ross Hall, Room 0124
Econ 353 is an undergraduate course focusing on the study of financial
markets and institutions, including in particular the study of money and banking. The primary objective of this course is to help students obtain a better understanding of key financial issues currently facing private citizens and policy-makers both here in the U.S. and abroad.
To aid this understanding, economic tools and concepts will be developed to help students organize their thinking about financial assets and markets, and about the varied roles of key financial market participants. Real-world events will be heavily relied on for concrete illustration. Examples include: the recent (and still ongoing) global financial crisis; the Enron bankruptcy scandal; recent stresses
faced by the European Union and the Euro common currency zone as a result of the ongoing global financial crisis; the
controversial role of the International Monetary Fund (IMF) in the global economy; the Grameen Banking (microcredit) movement; and historical comparisons of previous financial crises to the current financial crisis.
On-line notes for each assigned textbook chapter will be provided (linked to the course syllabus) along with lists of key in-class discussion questions. Discussion of these questions will be stressed in place of traditional lectures during regular classroom meetings.
In particular, students will be expected to study assigned textbook
chapters and accompanying on-line chapter notes prior to attending the class meeting in which they are discussed. Key questions related to these materials will be identified in advance for each class meeting, and students should come to class prepared to participate in the discussion of these questions. At least twenty five percent of each test (midterm exams and final exam) will relate to these key in-class discussion questions and the points raised in the accompanying class discussions. The intention is to have the class discussions elaborate and expand upon the assigned readings and on-line lecture notes rather than having class lectures simply replicate these materials.
The basic course structure for Econ 353 is outlined
below. A detailed listing of course topics and required readings is
separately provided on the
Econ 353 Syllabus.
- Financial Economics: Fundamental Concepts
- Financial Markets (Domestic and International)
- Financial Institutions
- Note: Please refer to the
Econ 353 Syllabus
for a detailed outline of topics and reading assignments.
Credits and Required Textbook
- Credits: 3 credits
- Required Course Textbook (Bookstore):
- Frederic S. Mishkin,
The Economics of Money, Banking, and Financial Markets -- Business School Edition,
2nd Edition, Addison Wesley, 2010.
- Important Remarks About this Required Text:
- Mishkin's Business School Edition (2nd ed) is
the required textbook for this course offering. Please make every attempt to secure a copy of this textbook since it has been substantially revised from earlier Mishkin editions. Since MyEconLab will not be used, students do NOT need to purchase a Student Access Kit for direct access to the MyEconLab website. Used copies of Mishkin's Business School Edition can therefore be purchased and used without any problem, even if these copies do not come with the student access kit.
- Prerequisites: Introductory Microeconomics and Macroeconomics (Econ 101 and 102 or equivalent)
- Two midterm exams have been scheduled (Thursday, February 10th and Thursday, March 10th) in our regular classroom at our regular class meeting time. In addition, our comprehensive final exam is scheduled for Monday, May 2, 12:00-2:00 p.m. in our regular classroom in accordance with the
ISU Spring 2011 tentative final exam schedule.
- Also, frequent short take-home exercises will be assigned during the semester as a running check on mastery of course materials.
- Each student's overall course score will be based on the following components:
- Take-home Exercise Score (20 Percent):
The percentage of total points earned on take-home exercises, pro-rated to 20 percent of the overall course score, with each student permitted to omit their worst take-home exercise.
- Midterm Exam Score (35 Percent):
The percentage of total points earned on the best (of two) midterm exams, pro-rated to 35 percent of the overall course score. Each student is permitted to omit their worst midterm exam score.
- Final Exam Score (45 Percent): The percentage of total points earned on the comprehensive final exam, pro-rated to 45 percent of the overall course score.
- Thus, for example, a student scoring 100 percent on take-home exercises, 40 percent on the first midterm exam, 90 percent on the second midterm exam, and 80 percent on the final exam would receive an overall course score of 91 percent (91 = 100*.20 + 90*.35 + 80*.45).
- The exact cut-offs for letter grades will be decided on the basis of the mastery of key concepts and issues displayed at each overall
course score level rather than by a curve dictating that a certain
percentage of students must earn a certain letter grade.
- However, students attaining a 90 percent (or better) overall course score are assured of earning an A; students attaining an 80 percent (or better) overall course score are assured of earning at least a B; students earning a 70 percent (or better) overall course score are assured of earning at least a C; and students earning a 60 percent (or better) overall course score are assured of earning at least a D.
Class attendance and participation will count for extra credit in the case of a borderline grade. By "class participation" I mean both attendance and engagement in class discussions. Engagement, at a minimum, means attentive listening. Ideally, engagement will also involve thoughtful contributions to class discussion.
Conversely, inattentive students (e.g. students reading newspapers or doing web browsing unrelated to class discussion) will be considered "absent" for extra credit purposes. Inattentive students whose actions are judged to be disruptive to class discussion will be asked to leave.
Ensuring that class meetings are productive (informative) and even fun takes preparation and engagement on everyone's part (students and instructor). Poor preparation and minimal engagement make for a boring unproductive time for everyone (including the instructor!).
Midterm and Final Exam Policy
- For important information concerning scheduled exam dates, specific exam topics and required materials, and general exam policies and procedures, please refer to the
Exam Information Site.
It is strongly recommended that students also take advantage of the
provided from past Econ 353 course offerings.
Take-Home Exercise Policy
- Please refer to the
Take-Home Exercise Information Site
for important special instructions concerning the preparation and
submission of take-home exercises. It is strongly recommended that students also take advantage of the
provided from past Econ 353 course offerings.
- If you have a disability and require accommodations, please contact the
instructor early in the semester so that your learning needs may be
appropriately met. You will need to provide documentation of your disability
to the Disability Resources (DR) office, located on the main floor of the
Student Services Building, Room 1076, 515-294-6624.
Copyright © Leigh Tesfatsion. All Rights Reserved.