Course: Economics 470/570 - Monetary Theory and Policy
Professor: Mark Thoma
Office/Hours: PLC 471 on M/W 12:30-1:30 p.m.
Phone/Email: (541) 346-4673,
[email protected]
Web Page:
http://economistsview.typepad.com/economics470/
Text: Principles of Money, Banking, and Financial Markets, 11th
edition, by Ritter, Silber, and Udell, Pearson Addison-Wesley.
Alternate Text: Frederic S. Mishkin, The Economics of Money, Banking,
and Financial Markets, 7th edition (Addison Wesley: New York).
Prerequisites: Economics 313 or the equivalent.
GTF, Office Hours, Location, and Email Address:
Matt Miller T/Th 3:30-4:30 and F 1:00-2:00 PLC 504 [email protected]
Tests and Grading: There will be two midterm exams and a final. The midterms will be given Monday, February 6th and Monday, February 27th. The final will be given on Tuesday, March 21st at 10:15 a.m. No make-up exams will be given. Each midterm is worth 30% and the final is worth 40%. Grades will be assigned according to your relative standing in the class.
Homework: Problem sets will be assigned periodically. These are not graded, but it is strongly recommended that you do them since exam questions will be based upon the problem sets.
Tentative Course Outline:
| Introduction | Ritter, Silber, Udell | Mishkin |
| Introduction | ch. 1 | |
| Money in the Macroeconomy | ch. 2, 4, pgs. 63-64 | ch. 3 |
| Banks and Other Intermediaries | ||
| Financial Intermediation | class notes | |
| The Conduct of Monetary Policy | ||
| The Federal Reserve System | ch. 17 | ch. 14 |
| Bank Reserves and the Money Supply | ch. 18 | ch. 15 |
| Instruments of Monetary Policy | ch. 19 | ch. 16 |
| Monetary Policy Strategy | ch. 21 | ch. 17 |
| Monetary Theory | ||
| The Classical Foundations | ch. 22 | ch. 22 |
| The Keynesian Framework | ch. 23 | ch. 23 |
| The IS-LM Model | ch. 24 | |
| Short-Run Stabilization Policy | ch. 25 | ch. 24 |
| The AS-AD Model and Stabilization | ch. 26 | ch. 25 |
| Rational Expectations | ch. 27 | ch. 27, 28 |
