Economic analysis of effects of money, banking, and financial institutions on business decisions and aggregate economic activity.
The study guide, Money, the Financial System and Economy by Hubbard is not a required text for this course. It serves as a supplement to help further students' understanding. If students choose to use this text, any edition will provide the same basic reviews, although the current course is written with reference to the 5th edition. Students will need to have access to the Wall Street Journal.
Course Outline: 
  1. Introduction to Money and the Financial System
  2. Overview of the Financial System
  3. Interest Rates and Rates of Return
  4. The Theory of Portfolio Allocation
  5. Determining Market Interest Rates
  6. Risk Structure and Term Structure of Interest Rates
  7. The Foreign Exchange Market and Exchange Rates
  8. Derivative Securities and Derivative Markets
  9. Financial Market Efficiency
  10. Financial Institutions
  11. The Business of Banking
  12. The Banking Industry and Banking Regulation
  13. International Banking
  14. The Money Supply Process
  15. Changes in the Monetary Base
  16. Organization of Central Banks
  17. Monetary Policy
  18. Aggregate Demand and Aggregate Supply
  19. Inflation