Course Description

Money and banks in the economy, with lectures on financial intermediation, how interest rates are determined, domestic banking regulations, international banking and exchange rates, and monetary theory and policy.

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Athena Title

Money and Banking

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Equivalent Courses

Not open to students with credit in ECON 4030H

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Prerequisite

(ECON 2106 or ECON 2106H or ECON 2106E) and (ECON 2105 or ECON 2105H or ECON 2105E)

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Semester Course Offered

Offered every year.

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Grading System

A - F (Traditional)

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Course Objectives

The course examines the nature and historical development of monetary and banking institutions. It then looks at the determinants of the supply of and demand for money, the concept of "monetary equilibrium," and the effects of monetary disturbances on commmodity prices, interest rates, and real output. The final topics considered deal with questions of monetary policy, including schemes for reforming existing banking and currency arrangements.

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Topical Outline

The Nature and Functions of Money The Evolution of Money The Origins of Banking Central Banks and Fiat Money The Development of Banking in the United States The Civil War and its Monetary Legacy The Federal Reserve and After The Theory of Money Supply The Demand for Money Money and Inflation Money and Interest Rates Money and Output The Business Cycle Banking Crises and Bank Regulation International Monetary Regimes Domestic Monetary Policy Monetary Alternatives

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