ECON 380, MONEY AND BANKING
Fall 2009
Monday and Wednesday
9:00 – 10:15 AM (section 01 01)
10:30 – 11:45 AM (section 02 01)
Krannert G-10
Instructor: Drew Saunders
Office:
406 Krannert Bldg
Phone: 496-2737
Office Hrs: Mon/Wed 3:00– 4:30 PM (or by appointment)
E-mail: saunders@purdue.edu
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(Download Adobe Acrobat Reader for PDF files free.)
What's new (as of Mon 11/16/09)?
·
Assignment
#5 will be due – collected – on Monday 11/23; see below for details.
·
FYI: Our
Final Exam will be on Wed 12/16, 10:20AM-12:20PM in ME 161… BE THERE!
Topics, Assignments, Notes, and Links (by class date):
Monday, Aug 24: Welcome and introduction. Slides from 8/24/09.
· Please read chapters 1-3 of Hubbard.
· Prep for Quiz on Wed 9/2 by working on these problems:
o From Ch.1: 3, 6, 8, 10
o From Ch.2: 4, 13, 19, 21, 22
Wednesday, Aug 26: Introduction (in earnest) to money and the financial system. Slides from 8/26/09.
Monday, Aug 31: More introduction to money and the financial system.
Wednesday, Sep 2: Digression on the future of global capitalism and quiz.
· FT discussions on the future of capitalism:
1. Future of Global Capitalism: New York Panel Part 1
2. Future of Global Capitalism: New York Panel Part 2
3. Future of Global Capitalism: New York Panel Part 3
Monday, Sep 7: No class today!
Wednesday, Sep 9: The last bit of the introduction, and discussion of the structure of households’ finances and net worth.
· Notes on chapter 3 of Hubbard.
· Some notes on this Census document on household net worth.
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For next week, please read Chapter 4 of Hubbard and
prepare for a quiz on Wed by doing the following problems and work the
following problems to be collected on Monday, September 21:
· From Ch.3: problems 15 and 20.
· From Ch.4: problems 9, 15, 20.
· Here are solutions to last week’s quizzes: 9AM (section 01), 10:30 (section 02).
Monday, Sep 14: Guest lecturer Prof. Bert Chapman from the Government Information and Political Science Library will discuss library resources.
· Here is a point of departure for the links to sites Prof. Chapman discussed today:
o http://www.lib.purdue.edu/govdocs/banking.html
Wednesday, Sep 16: Basics of bonds, loans, and interest rates. Handout 9/16/09.
Monday, Sep 21: Portfolio allocation. Handout 9/21/09..
Wednesday, Sep 23: Credit markets: bond markets, loanable funds market. Handout 9/23/09.
· Here is the solution to Assignment #2
· Here is a description of how points were awarded on Assignment #2.
Monday, Sep 28: Credit markets: bond markets, loanable funds market.
· Here is an article from the FT that we discussed in class.
· Here is the practice exam.
Wednesday, Sep 30: Exam 1 today!
Monday, Oct 5: Credit markets: an international perspective. Slides from today (if you want 'em!).
· ASSIGNMENT #3: Read chapters 6 and 7 in the book and prepare for QUIZ next Wed (Oct 14) by working these problems
o Chapter 6: 10,11,12,13,16,20
o Chapter 7: 17,18,19,32,33
o I will NOT collect these problems from you.
· Here is a link to the text of Bernanke’s speech at the Bundesbank in 2007 (the table is interesting!); and the video link.
Wednesday, Oct 7: The Risk and Term Structure of Interest rates. Handout 10/7/09.
Monday,
Oct 12: [October Break; no class!]
Wednesday, Oct 14: Overview of the Financial Crisis: Inside the Meltdown!
· Here is the key for Exam 1.
· Here is a link to Frontline’s Inside the Meltdown video.
Monday, Oct 19: The rest of the Meltdown.
Wednesday, Oct 21: Foreign exchange markets. Handout 10/21/09.
· Assignment #4: Prep for quiz next Wednesday (Oct 28) by working on these problems (not to be collected):
1. Chapter 8: 14, 17-24
Monday, Oct 26: Foreign exchange markets.
· Here is the solution to Quiz 3.
Wednesday, Oct 28: Foreign exchange markets.
Monday, Nov 2: Derivatives markets. Handout 11/2/09.
· Hedge Funds and the Collapse of LTCM is an interesting article on the subject. If you find it too long and boring, you might focus on the sections on the collapse and policy implications of LTCM.
Wednesday, Nov 4: Derivatives market.
· Here is the solution to quiz 4 (paradoxically, the third quiz!).
Monday, Nov 9: Review for Exam 2.
· Here is practice Exam 2.
Wednesday, Nov 11: Exam 2 today!
Monday, Nov 16: A Taxonomy of Financial Institutions. Handout 11/16/09.
· Assignment #5 will be collected next Monday (11/23):
1. Find an article (in WSJ, FT,Economist…) on one of the following issues:
· Pension fund finance/regulation/reform
· Current proposals with respect to regulation of investment banking or related institutions
Then (i) summarize the issue; and (ii) comment on what good public policy changes are warranted.
2. Do problems 16, 18, 22 in Chapter 12.
Wednesday, Nov 18: More financial institutions, some scandal.
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Report an error on this page: saunders@purdue.edu