BROCK UNIVERSITY

ECONOMICS 3P04

MONEY AND BANKING II

Winter 2009

A. General Information

Instructor	Professor Zisimos Koustas
Office	Plaza 437
Phone	688-5550 Ext. 3326
Web Page	http://spartan.ac.brocku.ca/~zkoustas/
Office Hours	T 13:00-14:00 R 13:00-14:00

B. Course Grading

There will be a midterm test and a final examination. In addition, two problem sets will be assigned and marked. The average of the assignment grades will be used to calculate the final grade. The weights attached to each piece of work in the course are as follows:

Midterm test	40%
Assignments	10%
Final examination	50%

Note: Students may withdraw from the course without academic penalty by Friday, February 27, 2009.

C. Suggested Study Method

Attending classes regularly and taking class notes is strongly recommended. Active class participation, through contributing to the discussion, is very much encouraged. Discussing the assigned problems with classmates is allowed and indeed encouraged. However, the final product must reflect your own work. Late assignments will be accepted with a penalty of 10 marks per overdue day.

D. Course Outline

Required Text: Frederic S. Mishkin and Apostolos Serletis, The Economics of Money, Banking, and Financial Markets: Third Canadian Edition, Pearson, Addison-Wesley, Toronto, 2008.

	Part V: Central Banking and the Conduct of Monetary Policy
Week 1	Chapter 14. Structure of Central Banks and the Bank of Canada
	Chapter 15. Multiple Deposit Creation and the Money Supply Process
Week 2	Chapter 16. Determinants of the Money Supply
Week 3	Chapter 17. Tools of Monetary Policy
	Chapter 18. Conduct of Monetary Policy: Goals and Targets
	Part VI: International Finance
Week 4	Chapter 19. The Foreign Exchange Market
Week 5	Chapter 20. The International Financial System
	Midterm Test: Saturday, February 7, 2009
	Part V: Monetary Theory
Weeks 6-8	Chapter 21. The Demand for Money
Week 9	Chapter 24. Aggregate Demand and Supply Analysis
Week 10	Chapter 26. Money and Inflation
Weeks 11-12	Chapter 27. Rational Expectations: Implications for Policy