《货币金融学英1》课程教学大纲

1、货币金融学英1课程教学大纲Course Name: Money and BankingCourse Code:FIN900Instructor: Chengbo Xie, Gezhi 518, HYPERLINK mailto:xiecb xiecbTime and Location: Wednesday, 08:30-11:05, C408, SWUFE (Liulin Campus)Office Hours: Tuesday morning 10:00am-12:00am or by appointment, Gezhi 518.Course website: We will use th

2、e learning system “MyEconLab” and the website is HYPERLINK /global/ /global/. I will post class announcement, the syllabus, lecture notes (slides), additional readings, and other materials there.Prerequisites: A background in Microeconomics and Macroeconomics is highly recommended.Course Description

3、This is a one semester course on Money, Banking and Financial Markets. We will study the financial system from an economic perspective. Specifically, we will focus on the concept of money, interest rates, major financial markets, banking structures and function, central banking, determinants of the

4、money supply, exchange rates, and monetary policy. For example, how are interest rates determined? What economic factors drive the yield curves in different bond markets? This course is appropriate for anyone trying to gain a macroeconomic perspective on Financial markets.Teaching ObjectivesUpon com

5、pletion of the course, students should:Develop a general understanding of some basic concepts in FinanceKnow the role and function of the banking systemMaster the fundamentals of monetary theory and its relevance to policy makingBe able to apply what you learned to solve problems in realityTextbooks

6、Required textbookMishkin, Frederic S. The Economics of Money, Banking, and Financial Markets. Eleventh edition. Pearson series in economics. Boston: Pearson, 2016.Recommended supplementary/complementary textbooks黄达，张杰。金融学（第四版）。中国人民大学出版社，2017。殷孟波，解川波。货币金融学（第二版）。出版社，2012。Mankiw, Nicholas Gregory. Prin

7、ciples of Economics. 8th edition. Boston: Cengage, 2018.Main ContentChapterTopicsSchedule1Why study money, banking, and financial markets1. Why study financial marketsWeek 1(chapter 1)2. Why study financial institutions and banking3.Why study money and monetary policy4. Why study international finan

8、ce2An overview of the financial system 1. Function of financial marketsWeek 2(Chapter 2)2. Structure of financial markets3.Financial market instruments4.Internationalization of financial markets5.Function of financial intermediaries: indirect finance6.Types of financial intermediaries7. Regulation o

9、f the financial system3Financial System in ChinaHistorical reformsStructure of financial marketsTypes of financial intermediariesRegulationsWeek 34What is money1. Meaning of moneyWeek 5(Chapter 3)2. Functions of money3. Evolution of the payments system4. Measuring money5The meaning of interest rates

10、1.Measuring interest ratesWeek 6(Chapter 4)2.The distinction between interest rates and returns3.The distinction between real and nominal rates6The behavior of interest rates 1.Determinant of asset demandWeek 7(Chapter 5)2. Supply and demand in the bond market3. Changes in equilibrium interest rates

11、4. Supply and demand in the market for money: the liquidity preference framework5.Changes in equilibrium interest rates in the liquidity preference framework6.Money and Interest Rates7The risk and term structure of interest rates 1. Risk structure of interest ratesWeek 8(chapter 6)2. Term structure

12、of interest rates8The stock market, the theory of rational expectations, and the efficient market hypothesis（Chapter 7）1. Computing the price of common stockWeek 92. How the market sets stock prices3. The theory of rational expectations4. The efficient market hypothesis5. Why the EMH does not imply

13、the financial markets are efficient6. Behavioral finance9An economic analysis of financial structure(chapter 8)1. Basic facts about financial structure throughout the worldWeek 102.Transaction costs3.Asymmetric information: adverse selection and moral hazard4. The lemons problem: how adverse selecti

14、on influences financial structure5. How moral hazard affects the choice between debt and equity contracts6. How moral hazard influences financial structure in debt markets10Banking and the management of financial institutions (Chapter 9)1. The bank balance sheetWeek 112. Basic banking3. General prin

15、ciples of bank management4. Managing credit risk5. Managing interest-rate risk6. Off-balance-sheet activities11Economic analysis of financial regulation (chapter 10)1. Asymmetric information and financial regulationWeek 122. The 1980s savings and loan and banking crisis3. Banking crises throughout t

16、he world4. The dodd-frank bill and future regulation12Central banks: a global perspective (Chapter 14)1. Origins of the federal reserve systemWeek 132. Structure of the federal reserve system3. How independent is Fed?4. Should the Fed be independent?5. Explaining central bank behavior6. Structure an

17、d independence of the ECB7. Central banks round the world8. Structure and independence of other foreign central banks13The money supply process (Chapter 15)1. Three players in the money supply processWeek 142. The Feds balance sheet3. Control of the monetary base4. Multiple deposit creation: a simpl

18、e model5. Factors that determine the money supply6. Overview of the money supply process7. The money multiplier14Tools of monetary policy (Chapter 16)1. The market for reserves and the federal funds rates Week 152. Conventional monetary policy tools3. Nonconventional monetary policy tools during the

19、 global financial crisis4. Monetary policy tools of the European central bank15The foreign exchange market (Chapter 18)1. Foreign exchange marketWeek 162. Exchange rates in the long run3. Exchange rates in the short run4. Explaining changes in the exchange rates16Quantity theory, inflation, and the

20、demand for money(Chapter 20)1. Quantity theory of moneyWeek 172. Budget deficits and inflation3. Keynesian theories of money demand4. Portfolio theories of money demand5. Empirical evidence for the demand for moneyAssessment and GradingPlease note that the requirements and grading policy set forth i

21、n this syllabus may be modified any time. Notice of such changes will be by announcement in class and on MyEconLab.Attendance:Score: 5I will randomly call the roll during the semester. If you are absent from the classes for 1 time, you will lose all the 5 points.Problem sets/assignmentsScore: 30The

22、assignments will be posted on MyEconLab. For each assignment, unlimited attempts are allowed before due date and the latest one will be used as the score for this assignment.Please complete the homework independently. Cheating is not allowed.Group projectScore: 15The groups will be assigned by the i

23、nstructor. The list can be found on MyEconLab.Each group should choose one question from the pool. I will post the question on MyEconLab.Each group should give a presentation before the class starting from week 7.MidtermScore: 20Closed-book and closed-notesOn November 24 or 25. The time is to be det

24、ermined.Final examScore: 30Closed-book and closed-notesIn final weeDesigned by committee of Money and BankingIdeologyAcademic IntegrityCheating and other forms of academic dishonesty will not be tolerated. Academic dishonesty includes, but is not limited to: copying the work of another student in an

25、 examination, providing answers to another student in an examination, using any unauthorized materials in an examination, impersonating another student or allowing such in an examination, changing the name or answers on an examination after the work has been graded and returned. All incidents of plagiarism or collusion will result in the student receiving a fa