UNIVERSITY OF CONNECTICUT

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 Department of Economics

ECON 2411- Principles of Money and Banking-

Spring 2021- Online

Instructor: Owen Svalestad [email protected]

REQUIRED TEXT

The Economics of Money, Banking and Financial Markets. Frederic S. Mishkin 12th Ed
Please see the instructions for My Econ Lab. This is a requirement. Directions about how to acquire the
material is on our Blackboard page.

COURSE DESCRIPTION

This course will introduce the student to the basic principles of money, banking and the financial
system. We will explore the basic structure of the banking system and the interrelationships that
link this structure to the workings of the economy. Emphasis will be on theory and how this
theory applies to the business and economic conditions domestically and internationally.

Course Objectives

- Introduce the students to the basic workings of our financial system.

- Develop an understanding of what the money supply is.
- Create an understanding of interest rates and their effect on the economy.
- Develop an understanding of the structure of the banking system.
- Introduce the student to how monetary and fiscal policies are used.
- Explore the transmission mechanism of monetary policy.
- Discuss how the money supply may be connected to inflation.
- Develop an understanding of the significance of rational expectations.

COURSE FORMAT

This is an on-line course. All of your assignments are clearly presented in the course’s
Blackboard page. Please follow the instructions as presented. Please note that I will be in
contact daily reminding you on what needs to be done. You are expected to follow the assignments
at your pace, however, please note the time sequence that is highlighted in the outline of topics
below. We will primarily follow the sequence of topics as presented in the text book. The primary
focus will be on basic Economic theory and how it may apply to the financial sector and its many
issues. The goal is to understand basic economic theory and how it can explain our economy today
given the Covid crisis recession. Mutual respect is the name of the game. I will treat everyone with
respect and I expect the same.

Note that I will be in communication with you on a daily basis, much of that will be an
announcement or just some basic encouragement.

Grading Components

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 Your final grade will be determined in the following manner:
Average of chapter quizzes- 1/3
Midterm Exam- 1/3
Final Exam- 1/3 (Non cumulative)

In regards to the quizzes- There will be a quiz for each chapter and they will be given through MyEconLab.
At the end of the semester I will drop the 2 lowest quiz scores and then take the average.
In Regards to the Midterm- It will be given on Friday 3/5 in MyEconLab and be composed of multiple
choice questions.
In regards to the Final Exam- The exam will be given on Wednesday May 5
These dates are subject to change.

Final Course Letter Grade Basis:

Overall 91% average and higher - A
Overall 89% to 90% average- A-
Overall 86% to 88% average- B+
Overall 81% to 85% average- B
Overall 79% to 80% average- B-
Overall 76% to 78% average- C+
Overall 71% to 75% average- C
Overall 69% to 70% average- C-
Overall 66% to 68% average- D+
Overall 60% to 65% average- D
Overall 50% to 59% average- D-
Below 50- F

ACADEMIC HONESTY
Studying with a classmate or a small group or tutoring is encouraged. Any student caught
cheating on an exam or otherwise submitting graded work that is not entirely their own will
receive a grade of zero for the offending activity and the offense will be reported to the
Department Chair and the Dean's office. The University policy on academic misconduct
applies and you are advised to read that policy, which is posted on Course Compass under
Course Materials.

HOW TO GET HELP

Send me a message if you have any issues or questions. I am very available however it is
your responsibility to let me know if you have a problem. My Econ Lab will have many sources of
information that will be helpful.

OUTLINE OF TOPICS- Subject to change

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Part l. Introduction

Chapter 1- Why Study Money, Banking and Financial Markets- Read as an introduction

Chapter 2- An Overview of the Financial System

Chapter 3- What Is Money

Part 2- Financial Markets

Chapter 4- The Meaning of Interest Rates

Chapter 5- The Behavior of Interest Rates

Chapter 6- The Risk and Term Structure of Interest Rates

Chapter 7- The Stock Market

Part 3- Financial Institutions

Chapter 8- An Economic Analysis of Financial Structure

Chapter 9- Banking and Management of Financial Institutions

Chapter 10- Economic Analysis of Financial Regulation

Chapter 11- The Banking Industry, Structure and Competition

Chapter 12- Financial Crisis

Midterm Exam on Friday 3/5 (Chapters 1 – 12)

Part 4- Central Banking and the Conduct of Monetary Policy

Chapter 13- Central Banks and the Federal Reserve System

Chapter 14- The Money Supply Process

Chapter 15- Tools of Monetary Policy

Chapter 16- The Conduct of Monetary Policy: Strategy and Tactics

Part 5- Monetary Theory

Chapter 19- Quantity Theory, Inflation and the Demand For Money

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 Chapter 20- The IS Curve

Chapter 21- Monetary policy and Aggregate Demand

Chapter 22- Aggregate Demand and Supply Analysis

Chapter 23- Monetary Policy Theory

Chapter 24- The Role of Expectations in Monetary Policy

Chapter 25- Transmission Mechanisms of monetary Policy

Final Exam date is Wednesday May 5. It will be on chapters 13- 16 and 19 – 25.

A Note About the Final Exam

Even though on line, our final exam will be given during the school assigned final exam time that will be
announced. Students are required to be available for their exam during the stated time. If you have a conflict
with this time, you must visit the Dean of Students Office to discuss the possibility of rescheduling this
exam. Please note that vacations, previously purchased tickets or reservations, social events, misreading the
exam schedule and over-sleeping are not viable excuses for missing a final exam. If you think that your
situation warrants permission to reschedule, please contact the Dean of Students Office with any questions.
Thank you in advance for your cooperation.

Policy Against Discrimination, Harassment and Related Interpersonal Violence

The University is committed to maintaining an environment free of discrimination or discriminatory
harassment directed toward any person or group within its community – students, employees, or visitors. 
Academic and professional excellence can flourish only when each member of our community is assured an
atmosphere of mutual respect.  All members of the University community are responsible for the
maintenance of an academic and work environment in which people are free to learn and work without fear
of discrimination or discriminatory harassment.  In addition, inappropriate amorous relationships can
undermine the University’s mission when those in positions of authority abuse or appear to abuse their
authority.  To that end, and in accordance with federal and state law, the University prohibits discrimination
and discriminatory harassment, as well as inappropriate amorous relationships, and such behavior will be
met with appropriate disciplinary action, up to and including dismissal from the University.  Additionally, to
protect the campus community, all non-confidential University employees (including faculty) are required to
report sexual assaults, intimate partner violence, and/or stalking involving a student that they witness or are
told about to the Office of Institutional Equity.  The University takes all reports with the utmost seriousness. 
Please be aware that while the information you provide will remain private, it will not be confidential and
will be shared with University officials who can help.

More information is available at equity.uconn.edu and titleix.uconn.edu.

Statement on Absences from Class Due to Religious Observances and Extra-Curricular Activities
Faculty and instructors are strongly encouraged to make reasonable accommodations in response to student
requests to complete work missed by absence resulting from religious observances or participation in extra-

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curricular activities that enrich their experience, support their scholarly development, and benefit the
university community. Examples include participation in scholarly presentations, performing arts, and
intercollegiate sports, when the participation is at the request of, or coordinated by, a University official.
Such accommodations should be made in ways that do not dilute or preclude the requirements or learning
outcomes for the course.  Students anticipating such a conflict should inform their instructor in writing
within the first three weeks of the semester, and prior to the anticipated absence, and should take the
initiative to work out with the instructor a schedule for making up missed work.  For conflicts with final
examinations, students should contact the Office of the Dean of Students.
Faculty and instructors are also encouraged to respond when the Counseling Program for Intercollegiate
Athletes (CPIA) requests student progress reports.  This will enable the counselors to give our students
appropriate advice.

DISSABILITY POLICY
The University of Connecticut is committed to achieving equal educational and employment opportunity and
full participation for persons with disabilities.  It is the University’s policy that no qualified person be
excluded from consideration for employment, participation in any University program or activity, be denied
the benefits of any University program or activity, or otherwise be subjected to discrimination with regard to
any University program or activity.  This policy derives from the University’s commitment to
nondiscrimination for all persons in employment, academic programs, and access to facilities, programs,
activities, and services.

A person with a disability must be ensured the same access to programs, opportunities, and activities at the
University as all others.  Existing barriers, whether physical, programmatic, or attitudinal must be removed. 
Further, there must be ongoing vigilance to ensure that new barriers are not erected.
The University’s efforts to accommodate people with disabilities must be measured against the goal of full
participation and integration.  Services and programs to promote these benefits for people with disabilities
shall complement and support, but not duplicate, the University’s regular services and programs.

Achieving full participation and integration of people with disabilities requires the cooperative efforts of all
of the University’s departments, offices, and personnel.  To this end, the University will continue to strive to
achieve excellence in its services and to assure that its services are delivered equitably and efficiently to all
of its members.

Anyone with questions regarding this policy is encouraged to consult the Office of Institutional Equity
(OIE).  The office is located in Wood Hall, Unit 4175, 241 Glenbrook Road, Storrs, Connecticut 06269-
4175, telephone, 860-486-2943.

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