ECONOMICS 200: (Bard College Course) MONEY AND BANKING FALL 1998

PROFESSOR: L. RANDALL WRAY OFFICE: Seymour 201 EXTENSION: 758-7730

EMAIL: WRAY@LEVY.ORG (note: this is the best way to contact me)

OFFICE HOURS: M/W 3-4 PM, M/W 5:45-6 PM, and by appointment

COURSE DESCRIPTION: An investigation of the role of money and financial intermediaries in determining aggregate economic activity. We also examine in detail the functions of commercial banks and other financial institutions, as well as the role the central bank (Fed) plays in the economy. Institutional material will provide the backdrop for a discussion of the connection between prescriptions for monetary policy and monetary theories.

CLASS MEETS: M/W 4:20-5:40 pm, Olin 203

EVALUATION: MAKEUPS ARE GIVEN ONLY IN EXTRAORDINARY CIRCUMSTANCES. The evaluation will be based on participation, homework, a midterm, and a final exam. There will be approximately 10 homework assignments, most of which will require a two to three page essay. Late homework is devalued by 25% after the first instance (you may be late once with no penalty). The midterm will consist of essays and pictures. The final will be comprehensive, and will also consist of essays and pictures.

TEXTS: There are two texts: Principles of Money, Banking and Financial Markets, by Ritter, Silber and Udell; and Post Keynesian Monetary Economics, by Stephen Rousseas. In addition, a number of articles will be provided in class or placed on reserve in the library.

The Ritter, et. al., book presents the conventional approach to monetary theory and policy; this is also the approach taken by Chairman Greenspan. The Rousseas book presents an alternative, the Post Keynesian approach.

The Midterm Exam will be "open notes": you will be permitted to bring up to 3 pages of your own notes (one-sided; no xeroxes--I will check) to the exam; the notes will be collected with the exam. While I encourage you to work in groups while studying for the exam, you are to either write-out or type-up your notes for use during the exam. These should be in your own words, pictures, tables, and so on. The Final Exam WILL NOT BE open notes.

You should, of course, type your homework on a computer; this will allow you to make revisions easily and will greatly improve the quality of your work. It is also easier for me to read typed work, and you can use a "spell-check" to avoid errors. I do not deduct for handwritten work, however.

In the outline, the following abbreviations are used:

Ritter, Silber, Udell = (RSU)

Stephen Rousseas = (R)

Handouts or on Reserve = (P)

Note 1: Readings are to be completed by the date indicated. You will probably find it best to read items in the order listed.

Note 2: I will be away on Wednesday November 3, Monday November 30, and Wednesday December 9, because I have to attend conferences. There will be no class on these days. We will schedule make-up meetings.

COURSE OUTLINE