massign4 - 1 Money and Banking N. Sheflin Assignment 4...

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1 Money and Banking N. Sheflin Assignment 4 NOTES We continue with Monetary Theory – the theory of how the quantity of money affects the macro economy. The Demand for Money determines which variables matter and the Transmission of Monetary Policy focuses on several mechanisms by which changes in the quantity of money affect economic activity. Register your clicker on iclicker.com using your netid (ex; SMITH) (NOT your student number ex: 123006789). If not sure if you did it, do it again. If you are using iClickers in another class and have registered with student number, no problem, register it again with netid – it will keep both and use whichever is appropriate for the course. Your clicker points in Sakai WILL NOT be automatically updated – they will not change until I do a manual update every week or two. Investment Game Rounds 0 and 1 read, register, buy something, get rich READING Croushore is (in my opinion) useless on this topic, so see the following web readings and my notes below. The free FlatWorld Money and Banking (Quandrini and Wright) chapter 20 on the demand for money http://www.flatworldknowledge.com/pub/1.0/money-and-banking/29207#web-29404 (if link doesn’t work, search for M&B textbook and then look at chapter 20) and chapter 24 on Transmission mechanisms, particularly section 3. http://www.flatworldknowledge.com/pub/1.0/money-and-banking/29207#web-29442 Also/instead The demand for money http://en.wikipedia.org/wiki/Money_demand The classical quantity theory: http://en.wikipedia.org/wiki/Quantity_theory_of_money and then 20.2 (chapter 20, section Keynes’ Liquidity preference (ignore the venture capital section): http://en.wikipedia.org/wiki/Liquidity_preference The Liquidity Trap http://en.wikipedia.org/wiki/Liquidity_trap And monetarism http://en.wikipedia.org/wiki/Monetarism Don’t worry about references to the Fed and/or money creation – we’ll come to those later. KEY POINTS Why care about the demand for money? o
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This note was uploaded on 10/11/2011 for the course ECON 336 taught by Professor Hassan during the Spring '08 term at Rutgers.

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massign4 - 1 Money and Banking N. Sheflin Assignment 4...

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