Economics 330: Money and Banking

This site provides resources for students in Economics 330 at the University of Wisconsin, Madison for Fall 2006 Semester

Figure 1: Ten year-three month spread, in percentage points, monthly average of daily data (blue line), and spread as of 10/20 (red square). Recessions shaded in gray.
Source: St. Louis FRED II, NBER, and author's calculations.

Syllabus | Important Dates | Downloadable Course Materials and Information Sources | Department of Economics Robert M. LaFollette School of Public Affairs |

LECTURE: MW 4-5:15, 5206 Social Sciences Building

Section 301: R 3:30, 4322 Social Sciences, TA C. Baba
Section 302: R 2:25, 6232 Social Sciences, TA C. Baba
Section 303: R 9:55, changed to 122 Ingraham from 330 Education, TA C. Baba

Section 304: R 11:00, changed to 6310 Social Science from 1263 Comp S&ST, TA C. Baba

Section 305: F 9:55, 490 Van Hise, TA D. Nam
Section 306: F 11:00, 4308 Social Sciences, D. Nam
~~Section 307: F 8:50, 4322 Social Sciences, D. Nam~~
Section 308: F 1:20, 6112 Social Sciences, D. Nam

Instructor
Professor Menzie Chinn
Office Hours: MW 2:30-3:30
Office: 7418 Social Sciences Bldg.
Phone: (608) 262-7397
email: mchinn@lafollette.wisc.edu
Home Page

Teaching Assistants
Chikako Baba
Office Hours: Tu 10-12
Office: 7222 Social Sciences Bldg.
Phone: (608) 262-1983
Webpage
email: cbaba at wisc dot edu

Deokwoo Nam
Office Hours: F 12:10-01:10; 02:10-03:10
Office: 6473 Social Sciences Bldg.
Phone: (608) 262-1003
Webpage
email: dnam at wisc dot edu

Course Syllabus

Econ 330 Syllabus in PDF file

Economics 330 is a course in money and banking. The course will focus upon the theoretical and empirical aspects of the role of monetary policy in macroeconomic stabilization and economic growth. The determination of short and long term interest rates and exchange rates will be examined at length. The institutional structure of central banking and of bank financial intermediation in the U.S. will also be discussed. Prerequisites: Economics 101 and 102 or 111. Economics 302 is recommended.

The textbook is Frederic Mishkin, The Economics of Money, Banking and Financial Markets 8th Edition (Addison-Wesley, 2006) available at the University Bookstore. Additional readings from the WWW will be assigned during the quarter.

Important Dates

Midterm 1, Wednesday, 10/11.
Midterm 2, Wednesday, 11/8
Final Exam, Friday, 12/22 7:45AM, Social Sciences 6210

Course Materials and Sources of Economic Information

Downloadable Course Materials

Lecture 1 Powerpoint slides
Lecture 2 handout
Problem Set 1 (due 9/25)
Problem Set 1 Answers
Problem Set 2 (due 10/4)
"EHTS": Handout on Expectations Hypothesis, Liquidity Premium
Handout on "News" and Present Value Relations
Fall 2005 Midterm 1
Problem Set 2 Answers
Lecture 8-9 Powerpoint slides (shown 10/4); as a [PDF] (use the PDF at own risk)
Midterm 1 Answers
Midterm 1 Statistics/Grading Curve
"Exchange Rates": Handout on Exchange Rate Determination
Chapter 12 Powerpoint Presentation (10/18).
SF Fed Views graphs of 13 October
Problem Set 3 (due 10/30) (corrected 10/28)
Lecture 15 handout corrected
Problem Set 3 Answers (corrected 10/28)
Fall 2005 Midterm 2 (rev'd 10/31)
Lecture 18 (Derivatives) Powerpoint Presentation (11/6).
Chapter 13 8/e (Financial Derivatives).
Midterm 2 Answer Key
Midterm 2 Statistics/Grading Curve
Problem Set 4 (due 11/20)
"Money Multiplier": Handout on the Math of the Money Multiplier
Ip and Whitehouse, "How Milton Friedman Changed Economics, Policy and Markets," WSJ, Nov. 17.
Problem Set 4 Answers
Lecture 24 (Dec 4) handout
Problem Set 5 (due 12/13)
Problem Set 5 Answers
Fall 2005 Final Exam
Final Exam Answers

Additional Assigned Readings

Economics and Economic Policy Links

Resources for Economists Extensive links to data sources, working papers and organizations.
American Enterprise Institute Right of center think tank.
Brookings Institution Moderate/left of center think tank.
Institute for International Economics
Institute for International Finance Think tank associated with international banks.
Economic Policy Institute Left of center labor-oriented think tank.

International Organizations

International Monetary Fund
Bank for International Settlements Central banks' central bank.
Organization for Economic Cooperation and Development Developed country research organization.

U.S. Government Agencies

White House Council of Economic Advisers
U.S. Department of the Treasury
Congressional Budget Office Nonpartisan analytical agency of the Congress.
Federal Reserve Board

Current and Historical Data

Bloomberg calender of economic releases.
Yahoo financial data. Includes data on individual stocks and bonds.
St. Louis Fed economic database Thousands of time series on economic activity, in an easily downloadable form.
Dynamic Yield Curve
Federal Reserve Board data Monetary, financial and output data collected by the Nation's central bank.
White House Economic Briefing Room Contains current economic data.
Economic Report of the President, various years. The back portion of this annual publication contains about 70 tables of government economic data.
Bureau of Economic Analysis, Dept. of Commerce Data on GDP and components (the national income and product accounts) as well as other macroeconomic data.
Bureau of the Census, Dept. of Commerce Data on the characteristics of the US population as well as of US firms.
Bureau of Labor Statistics, Dept. of Labor Data on wages, prices, productivity, and employment and unemployment rates.
Energy Information Agency, Dept. of Energy Data on on energy (electricity, gas, petroleum) production, consumption and prices.
Statistical Abstract of the US A compilation of statistics about the US, from government and nongovernment sources.
NBER Data Specialized economic databases created by economists associated with the National Bureau of Economic Research.

Economics 330 Money and Banking / UW Madison / mchinn@lafollette.wisc.edu / 27 December 2006