Role of money and the banking system in the United States economy. Relation of money to inflation, interest rates, and business fluctuations. Monetary policy and Federal Reserve System. Prerequisite: 2.0 in ECON 301.
How households, firms, banks, and the Federal Reserve make their financial decisions and how they interact in the marketplace to determine: interest rates, deposit rates, the quantities of money and credit, national output, and the price level.
Student learning goals
General method of instruction
Lectures/discussion of theory & practice/problem solving.
Econ 300 and 301, familiarity with algebra, and willingness to work hard.
Class assignments and grading
a. Textbook reading b. Answers (in class) to end-of-chapter questions c. Additional specific assignments using Federal Reserve data and announcements d. Following the Wall Street Journal.
Two midterms, one final, homework, class participation.