Money, Banking and Capital Markets
MW 4:00-5:15PM; BU 300
Friday 9:00-11:00AM or by appointment.
As its title suggests, this course surveys a variety of topics related to money, banking, and
financial markets. The main objectives of this course are:
To provide students with an understanding of the fundamental nature and
role of financial markets and its main participants.
To link economic ideas to real events and policies. Given the ongoing
financial and economic turmoil, we will focus on the merits and pitfalls of
different policies: monetary policy, regulatory policies, and even fiscal
Student Learning Objectives
By the end of this class, students should be able to:
Explain the nature role of financial markets and financial intermediaries in
the financial system (LG1, LG2, and LG3).
Explain how interest rates are computed (LG5) and determined in bond
markets (LG1 and LG3).
Explain the structure, tools, goals and strategy of the Federal Reserve
System, the role of banks in the creation of money supply, the relationship
between money and inflation, and the relationship between domestic
monetary policy and foreign exchange rate markets (LG1, LG5, and LG9).
Explain the interactions between regulation and financial markets in
general, and between regulation and the banking industry in particular
(LG1, LG2, LG3, LG8, LG9).
Explain the various causes of the recent financial crisis and the policy
implications of these (LG1, LG2, LG3, LG4, LG8 and LG 9).
LG stands for the Kelley School of Business Undergraduate Program “Learning Goals” as described in