ECO 3223 - MONEY AND BANKING

Spring 2006

The Course Outline (pdf format).

The Course Outline (html format).

Visit the book web page at http://www.mhhe.com/economics/cecchetti1e

Download the Acrobat Reader (version 5.0) to Read and Print all documents.

Assignments

• The Solution to Assignment III.
• Assignment III is due on Friday, April 14, 2006 at 4:00 p.m.
  • Chapter 20: Problems 3, 4, 5, 9.
  • Chapter 21: Problems 5, 7, 11, 12.
  • Chapter 22: Problems 11, 12, 13.
• The Solution to Assignment II.
• Assignment II is due on Friday, March 24, 2006 at 4:00 p.m.
  • Chapter 15: Problems 1, 3.
  • Chapter 16: Problems 2, 3, 6, 10.
  • Chapter 17: Problems 4, 11, 12, 14.
  • Chapter 18: Problems 2, 8, 9, 11.
• The Solution to Assignment I.
• Assignment I is due on Friday, February 24, 2006, by 4:00 p.m. The solution will be posted [here on the class web page] at 5:00 p.m.
  • Chapter 11: Problems 2, 5, 7, 13.
  • Chapter 13: Problems 4, 5, 12, 17.
  • Chapter 14: Problems 3, 8, 9, 14.
• Use the Fed name [that you already selected] as your group name, e.g., if your Fed district is New York, then your group name is New York.

Exams

• The Final Exam will cover Chapters: 17, 18, 20, 21, 22 and 23.
  • NOTE that the FINAL EXAM will be held on Monday, May 1st, 2006 at 7:00 p.m.
• QUIZ IV will be held on Monday, April 17, 2006.
  • The QUIZ will cover Chapters: 20, 21 and 22.
  • Prepare by reading the book, the class notes, solving the assignment problems and answering the questions in the Study Guide.
  • This is a closed book quiz. No notes are permitted.
  • DO NOT FORGET to bring a BROWN scantron sheet.
  • DO NOT FORGET to bring a Calculator.
• QUIZ III will be held on Monday, March 27, 2006.
  • The QUIZ will cover Chapters: 15, 16, 17 and 18.
  • Prepare by reading the book, the class notes, solving the assignment problems and answering the questions in the Study Guide.
  • This is a closed book quiz. No notes are permitted.
  • DO NOT FORGET to bring a BROWN scantron sheet.
  • DO NOT FORGET to bring a Calculator.
  • The quiz will be made of multiple-choice questions and one short-essay question. Also, read the following:
    1. Class Handout: The Federal Reserve System.
    2. PAPER: Joshua N. Feinman (1993) Reserve Requirements: History, Current Practice, and Potential Reform Federal Reserve Bulletin, issue June, pages 569-589.
    3. PAPER: Michael D. Bordo (2005) Review of A History of the Federal Reserve. National Bureau of Economic Research paper #11714.
• QUIZ II will be held on February 27, 2006.
  • THIS IS AN ALL ESSAY QUIZ.
  • QUIZ II will cover Chapters: 11, 13, 14 and the following class handouts/papers.
  • The QUIZ will cover the following class handouts posted on the class web page and handed in class. We covered these notes in class. Also, study the paper no. 7. (link provided below).
    1. Class Handout: Financial Institutions.
    2. Class Handout: Deposits Taking Institutions.
    3. Class Handout: Non-Deposits Taking Institutions.
    4. Class Handout: Regulations of Financial Institutions.
    5. Class Handout: United States Acts related to the Financial Institutions.
    6. Class Handout: Federal Deposit Insurance Corporation (FDIC).
    7. PAPER: Should we reform the FDIC? read the paper by P. Konstas (2006) Reforming Deposit Insurance Levy Economics Institute Public Policy Brief No. 83, January 2006.
  • Prepare by reading the book, the class notes, the class handouts, solving the assignment problems and answering the questions in the Study Guide.
  • You are allowed a single page of notes during the QUIZ (FRONT and BACK). This note will be handed to the examiner at the end of the class.
• Download the Solution to QUIZ I.
• QUIZ I will be held on February 6, 2006.
  • The QUIZ will cover Chapters: 4, 5, 6, and 7.
  • Prepare by reading the book, the class notes, solving the assignment problems and answering the questions in the Study Guide.
  • DO NOT FORGET to bring a BROWN scantron sheet.
  • DO NOT FORGET to bring a Calculator.

Federal Reserve Team Assignment

• The Federal Reserve Team Assignment.
• The Beige Book Release Schedule for 2006.
• The Business Cycle:
  • FAQ of the NBER Business Cycle Dating Committee.
  • The NBER’s Recession Dating Procedure.
  • Business Cycle Expansions and Contractions.
• The term paper is to be handed prior to 4:00 p.m. on May 1, 2006, in an:
  • e-format upload to turnitin.com [see details below],
  • e-format by e-mail, and
  • in a hard copy.
• Turnitin submission: These are the instructions on how to submit the term paper on turnitin.com:
  • Read the Turnitin Student Guide.
  • Go to http://www.turnitin.com
  • Create a user profile (just like an email account).
  • Add this class to the list of your classes.
  • The Class id: 1475768
  • The enrollment pass: eco3223
  • Submit your paper.
• The Teams:
  • Boston: Jennifer Hampton, Melisa Glover, Crystal Noronha, Karissa Jarvis, Edward Barron.
  • New York: Arianne Lachance, Carrie Butler, Ron Allard, Tina Adamson, Rick Hyland.
  • Philadelphia: Rasheed Mohammed, Ryan Hughes, Craig Astrin, Ryan Modell, Chris Beekie, Johnny Saliba.
  • Cleveland: Kellie Hamme, Dimitri Constantine, Nick Toth, Adam Rhinehart, Erin Horn.
  • Richmond: Daniel Lascelles, Jami Smith, Jennifer Vazquez, William Wells, Javier Pastrana.
  • Atlanta: Scott Carmichael, Alicia Richardson, Joseph Mancuse, Ryan Ducharme, Michelle Mead, Evan Donald.
  • Chicago: Melodie Szara, Diego Navarro, Brian Dimaculangan, Brian Katz, Amanda Keleher.
  • St. Louis: Jason Ferlazzo, Rob Schmidt, Matthew Royer, Justin Brown, Richard Wilber, Don Zell.
  • Minneapolis: Dana Evans, Shana McDermott, Brandon Kievit, Melissa Jones, Denise McGowan, Paul Martinez.
  • Kansas City: .
  • Dallas: Justin Carter, Wesley Levins, April French, Michael Slavicz, David Barilla.
  • San Francisco: Kirk Robinson, Dave Florestil, Heather Mullen, Chris Craig, John Sutton.
  • Federal Reserve Board

LECTURE NOTES, ARTICLES and CLASS DISCUSSIONS

The lecture notes are not substitutes for the textbook, they are a complement to the textbook.

Subscribe to the following:

• Monetary Trends at the St. Louis Federal Reserve Bank.
• National Economic Trends at the St. Louis Federal Reserve Bank.
• How to Register for Monetary Trends Email Notifications.
• How to Register for National Economic Trends Email Notifications.

Notes and Readings

• Chapter 1 - Class Notes.
• Chapter 2 - Class Notes.
• Chapter 3 - Class Notes.
• The Time Line of the U.S. Financial System.
• PAPER: Walter, John R. (1989) Monetary Aggregates: A User’s Guide. Economic Review, Federal Reserve Bank of Richmond, pp. 20-28.
• Chapter 4 - Class Notes.
• Chapter 5 - Class Notes.
• Chapter 6 - Class Notes.
• Chapter 7 - Class Notes.
• Historical: The Yield Curve <-- try this one - Look at April 1980.
• Visit the http://www.investinginbonds.com/ to check the yield curve.
• Bonds Markets Defined.
• Link: Large Commercial Banks Data.
• Class Handout: Financial Institutions.
• Class Handout: Deposits Taking Institutions.
• Class Handout: Non-Deposits Taking Institutions.
• Class Handout: Regulations of Financial Institutions.
• Class Handout: United States Acts related to the Financial Institutions.
• Class Handout: Federal Deposit Insurance Corporation (FDIC).
• FDIC: Statistics at a Glance.
• Class Handout: FDIC closure list.
• PAPER: P. Konstas (2006) Reforming Deposit Insurance Levy Economics Institute Public Policy Brief No. 83, January 2006.
• Chapter 11 - Class Notes.
• Chapter 13 - Class Notes.
• Chapter 14 - Class Notes.
• PAPER:  Alan C. Stockman On the Roles of International Financial Markets and Their Relevance for Economic Policy Journal of Money, Credit and Banking.
• PAPER:  Mark Gertle Financial Structure and Aggregate Economic Activity: An Overview Journal of Money, Credit and Banking.
• PAPER:  Wendy Carlin and Colin Mayer (1999) How Do Financial Systems Affect Economic Performance? Oxford Working Papers.
• Chapter 15 - Class Notes.
• Chapter 16 - Class Notes.
• Class Handout: Federal Reserve System.
• PAPER: Michael D. Bordo (2005) Review of A History of the Federal Reserve. National Bureau of Economic Research paper #11714.
• Link to the Federal Reserve System 101.
• Link to the Fed101 "Fed Today Video".
• Link to the Federal Reserve Board.
• Link to the Federal Reserve Educational Page.
• Regulations set by the Federal Reserve.
• The New Currency (Interactive Notes).
• The Bureau of Engraving and Printing - U.S. Banknotes.
• The Bureau of Engraving and Printing - Money Facts.
• Link to the Federal Reserve Balance Sheet.
• Class Handout: The Federal Reserve System.
• Chapter 17 - Class Notes.
• Link to Open Market Operations.
• Link to Money Multiplier.
• Link to the Reserve Requirements.
• Chapter 18 - Class Notes.
• PAPER: Joshua N. Feinman (1993) Reserve Requirements: History, Current Practice, and Potential Reform Federal Reserve Bulletin, issue June, pages 569-589.
• Chapter 20 - Class Notes.
• Chapter 21 - Class Notes.
• Chapter 22 - Class Notes.
• Chapter 23 - Class Notes.

• Money, Value, and Monetary History
• Six Kinds of United States Paper Currency.
• Papers:
  • Nicola Cetorelli (2001) Competition among banks: Good or bad? Economic Perspectives, Federal Reserve Bank of Chicago.
  • O. M. W. Sprague (1910) Proposals for Strengthening the National Banking System, The Quarterly Journal of Economics, vol. 25 (1), 67-95. [YES, it is a 1910 study, there is no typos in the year].
  • J. Alfred Broaddus, Jr. (1994) Choices in Banking Policy. Economic Quarterly, Federal Reserve Bank of Richmond.
  • Robert DeYoung (2001) The Internet’s place in the banking industry. Chicago Fed Letter, Federal Reserve Bank of Chicago.
• Regulations set by the Fed for International Banking: Regulation K
• Papers:
  • The Future of Banking in America: Summary and Conclusions (pdf) | HTML
  • The Evolving Role of Commercial Banks in U.S. Credit Markets (pdf) | HTML
  • The U.S. Federal Financial Regulatory System: Restructuring Federal Bank Regulation
  • John H. Boyd and Stanley L. Graham (1991) Investigating the Banking Consolidation Trend. Quarterly Review Vol. 15 No. 2, Federal Reserve Bank of Minneapolis.
• June Nualtaranee (1999) Transmission Mechanism of Monetary Policy.
• Stephen D. Oliner and Glenn D. Rudebusch (1995) "Is there a bank lending channel for monetary policy?"  Economic Review, Federal Reserve Bank of San Francisco.

• RBC view on Monetary Transmission Mechanisms

  • Plosser, Charles I. "Understanding Real Business Cycles," Journal of Economic Perspectives 3 (1989), pp. 51-77.

  • Robert G. King and Charles I. Plosser. "Money, Credit, and Prices in a Real Business Cycle," American Economic Review, (1984) vol. 74, issue 3, pages 363-80.

MISCELLANEOUS

• How the Government Measures Unemployment.
• How the Fed sets Interest Rates.
• Macroeconomics Resources for Students.
• NATIONAL ACCOUNTS A Guide to the NIPA's By Eugene P. Seskin and Robert P. Parker (Important for Definitions)
• The Consumer Price Index - General Coverage.
• The Consumer Price Index--Why the Published Averages Don't Always Match An Individual's Inflation Experience. The Bureau of Labor Statistics.
• The United States Economy at a Glance.
• Teach yourself basic Macroeconomics. 

Conversion Table for the GRADES

The following letter grade system will be used,

YOUR GRADE IS NOT POSTED The grades will be handed in class

Since January 2006, this page was visited times.

Last Updated Monday, February 23, 2009 01:56:46 PM