Economics 255: Money and Banking

This course covers the economics of money, banking, and financial markets. The course helps students understand the role of money, financial markets, financial institutions, financial regulations, and monetary policy. We will pay particular attention to the banking system, with an eye toward understanding the function and importance of banks. Topics include the role of money, the determination of interest rates, the valuation of bonds and stock, the structure, function and prudential regulation of commercial banks, the role of the shadow banking system, the structure of central banks, conventional and unconventional monetary policy, and the role of a central bank as a lender of last resort during the Great Recession.