Class Notes:

1. Financial Institutions Taxonomy
2. Deposit-Taking Institutions
3. The Financial Institutions Class Notes [206 pages]  By T. Boules, J. Handa and O. Mikhail. Password protected. E-mail me for the password.

1. Non-Deposit-Taking Institutions
2. U.S. Financial Acts
3. Regulations
4. Tables Financial Institutions.

Role of Financial Markets (The financial architecture and the economy)

1. A** Nicola Cetorelli (2002) The role of financial services in economic growth. Chicago Fed Letter. Jan 2002. No. 173.
2. A** Oscar Cerda; Elijah Brewer III; and Douglas D. Evanoff. (2002) Financial market and regulatory behavior over the business cycle. Chicago Fed Letter. December 2002, no. 184a.
3. ** Elijah III Brewer and Douglas D. Evanoff.  (2000) Changing Financial Industry Structure and Regulation (Special Issue) Sept 2000 No. 157a. Chicago Fed Letter.
4. Richard J. Herring and Anthony M. Santomero (1995) “The Role of the Financial Sector in Economic Performance” The Wharton School, University of Pennsylvania, Working Paper 95-08.
5. Solomon Tadesse  (2001) “Financial Architecture and Economic Performance:  International Evidence” William Davidson Institute Working Paper Number 449.
6. *** Philip Arestis, Ambika D. Luintel, Kul B. Luintel (2004) “Does Financial Structure Matter?” Working Paper No. 399. The Levy Economics Institute. January.
7. ** W.F. Duisenberg. (2001) “The role of financial markets for economic growth.” Speech delivered by Dr. Willem F. Duisenberg, President of the European Central Bank, at the Economics Conference “The Single Financial Market: Two Years into EMU” organized by the Oesterreichische National Bank, in Vienna on 31 May.
8. Mark Gertle Financial Structure and Aggregate Economic Activity: An Overview Journal of Money, Credit and Banking.
9. Wendy Carlin and Colin Mayer (1999) How Do Financial Systems Affect Economic Performance? Oxford Working Papers.

Reforming the system

1. P. Konstas (2006) Reforming Deposit Insurance Levy Economics Institute Public Policy Brief No. 83, January 2006.
2. A** Nicola Cetorelli (2001) Competition among banks: Good or bad? Economic Perspectives, Federal Reserve Bank of Chicago
3. A** The Future of Banking in America: Summary and Conclusions (pdf) | HTML
4. The Evolving Role of Commercial Banks in U.S. Credit Markets (pdf) | HTML
5. ** The U.S. Federal Financial Regulatory System: Restructuring Federal Bank Regulation
6. John H. Boyd and Stanley L. Graham (1991) Investigating the Banking Consolidation Trend. Quarterly Review Vol. 15 No. 2, Federal Reserve Bank of Minneapolis.
7. Randall S. Krosmer and Philip E. Strahan (1997) The political economy of deregulation: evidence from the relaxation of bank branching restrictions in the United States, Federal Reserve Bank of New York, Research Paper No. 9720.

Class Notes:

1. Central Banks in the World today
2. Central Banks and the Federal Reserve System Structure
3. Federal Reserve independence
4. Federal Reserve and European Central Bank

Links:

• 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.

Class Notes:

1. What is Money?
2. Federal Reserve Balance Sheet and the Money Multiplier
3. Monetary Policy Instruments and the Taylor Rule

Links:

• 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.
• Link to Open Market Operations.
• Link to Money Multiplier.
• Link to the Reserve Requirements.
• Regulations set by the Fed for International Banking: Regulation K

Fed and Monetary Aggregates

1. Michael D. Bordo (2005) Review of A History of the Federal Reserve. National Bureau of Economic Research paper #11714.
2. ** Walter, John R. (1989) Monetary Aggregates: A User’s Guide. Economic Review, Federal Reserve Bank of Richmond, pp. 20-28.
3. Joshua N. Feinman (1993) Reserve Requirements: History, Current Practice, and Potential Reform Federal Reserve Bulletin, issue June, pages 569-589.
4. 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].

Class Notes:

1. The Risk and Term Structure - Handa: Chapter 21.
2. Macro Model: Y/AE, AD/AS, IS/LM.
3. Monetary Policy.
4. Money and Inflation.
5. Transmission Mechanisms.

Links:

• U.S. Treasury Yield Curve.
• 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.

Class Notes:

• Monetary Macro Model
  • Aggregate Expenditure / Income (AE/Y)
  • Aggregate Demand / Aggregate Supply (AD/AS)
  • Investment-Savings / Liquidity-Money (IS/LM)

Links to economists in Monetary economics:

• Professor Jagdish Handa web page.
• Professor Peter N. Ireland web page.
• Professor Paul D. Mizen web page.
• Professor John B. Taylor web page.
• Professor Carl E. Walsh web page.
• Economists: Monetary Economics.
• Monetarism

Class Notes:

1. Monetary Policy, Aggregate Demand, Aggregate Supply and the Monetary Reaction Curve.
2. Monetary Policy.
3. Money and Inflation.

Mid-Term Exam

Examples of Financial Institutions Questions.

Download the Mid-Term Exam

Class Notes:

1. Transmission Mechanisms.

Transmission of Monetary Policy

1. *** The Monetary Transmission Mechanism: Some Answers and Further Questions Federal Reserve Bank New York Economic Policy Review / May 2002.

2. Peter N. Ireland (2005, 2006) THE MONETARY TRANSMISSION MECHANISM, 2005 Working Paper, Boston College and NBER, December. Also, as a 2006 Federal Reserve Bank of Boston paper.

3. June Nualtaranee (1999) Transmission Mechanism of Monetary Policy.
4. 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.
5. Mishkin, Frederic S. (1995), “Symposium on the Monetary Transmission Mechanism,” Journal of Economic Perspectives 9(4), 3–10.
6. Bernanke, Ben S., and Mark Gertler (1995), “Inside the Black Box: The Credit Channel of Monetary Policy Transmission,” NBER Working Paper No. 5146. Journal of Economic Perspectives 9(4), 27–48.
7. Taylor, John B. (1995), “The Monetary Transmission Mechanism: An Empirical Framework,” Journal of Economic Perspectives 9(4), 11–26.

1. Pedro Teles and Ruilin Zhou (2005) A stable money demand: Looking for the right monetary aggregate Chicago Fed Economic Perspectives,1Q/2005.
2. Wall, Larry D. (2004) Symposium on Financial Institutions. The Financial Review, Feb, Vol. 39 Issue 1, p1-11.
3. Czyrnik, Kathy; Klein, Linda Schmid (2004) Who Benefits from Deregulating the Separation of Banking Activities? Differential Effects on Commercial Bank, Investment Bank, and Thrift Stock Returns. The Financial Review, May, Vol. 39 Issue 2, p317-341.
4. Benston, George J (2004) What's Special About Banks? The Financial Review, Feb, Vol. 39 Issue 1, p13-33.

06/22/06

• Class presentations of the term papers

Best Wishes for a good summer 2006