EC 230, Money and Banking
Spring 1998
Lecture Notes

Introduction

Hubbard, Chapters 1, 2, and 3

Lecture 1: 1-12-98 - What is Money and Where Did it Come From?
Lecture 2: 1-14-98 - More About Money
Lecture 3: 1-16-98 - Introduction to Financial Markets

Interest Rates

Interest Rates and Rates of Return

Hubbard, Chapter 4

Lecture 4: 1-19-98 - Present Value
Lecture 5: 1-21-98 - Yield to Maturity

Theory of Portfolio Choice

Hubbard, Chapter 5

Lecture 6: 1-23-98 - Portfolio Allocation
Lecture 7: 1-26-98 - Capital Asset Pricing Model

Determining Market Interest Rates

Hubbard, Chapter 6

Lecture 8: 1-28-98 - What Determines Interest Rates?
Lecture 9: 1-30-98 - International Capital Markets

Risk Structure and Term Structure of Interest Rates

Hubbard, Chapter 7

Lecture 10: 2-2-98 - Risk Structure of Interest Rates
Lecture 11: 2-4-98 - Term Structure of Interest Rates

Financial Markets

Derivative Securities and Markets

Hubbard, Chapter 9

Lecture 12: 2-6-98 - Derivatives

Information and Financial Markets

Hubbard, Chapters 10 and 11

Lecture 13: 2-9-98 - Efficient Markets
Lecture 14: 2-11-98 - Adverse Selection, Moral Hazard, and Financial Structure

Financial Institutions

Business of Banking

Hubbard, Chapters 12, 13, 14, 15, and 16

Lecture 15: 2-16-98 - Bank Liquidity Management
Lecture 16: 2-18-98 - Bank Asset and Liability Management
Lecture 17: 2-20-98 - U.S. Banking History
Lecture 18: 2-23-98 - Banking Regulation
Lecture 19: 2-25-98 - The Savings and Loan Crisis

The Supply of Money

The Money Supply Process

Hubbard, Chapters 17 and 18

Lecture 20: 3-9-98 - Multiple Deposit Creation
Lecture 21: 3-11-98 - Determinants of the Money Supply
Lecture 22: 3-13-98 - Explaining Depositor and Bank Behavior
Lecture 23: 3-16-98 - Monetary Base

Monetary Policy

Hubbard, Chapters 19, 20, and 21

Lecture 24: 3-18-98 - Federal Reserve System
Lecture 25: 3-23-98 - Tools of Monetary Policy I
Lecture 26: 3-25-98 - Tools of Monetary Policy II
Lecture 27: 3-30-98 - Intermediate Targets
Lecture 28: 4-1-98 - Fed's Policy Procedures

International Finance

Exchange Rates

Hubbard, Chapters 8 and 22

Lecture 29: 4-3-98 - Exchange Rates
Lecture 30: 4-6-98 - Foreign Exchange Markets
Lecture 31: 4-8-98 - International Finance

Monetary Theory

Demand for Money

Hubbard, Chapter 23

Lecture 32: 4-15-98 - Transactions Motive
Lecture 33: 4-17-98 - Speculative Motive

How Does Money Affect the Economy?

Hubbard, Chapters 25 and 26

Lecture 34: 4-20-98 - Aggregate Demand and Aggregate Supply Analysis
Lecture 35: 4-22-98 - Using AS and AD Analysis
Lecture 36: 4-27-98 - Money in the Short Run

Inflation

Hubbard, Chapter 28

Lecture 37: 4-29-98 - Inflation

David A. Latzko
318 COB
Department of Business and Economics
Wilkes University
Wilkes-Barre, PA 18766
phone: (717) 408-4718
fax: (717) 408-4917
dlatzko@wilkes.edu
wilkes1.wilkes.edu/~dlatzko

EC 230, Money and Banking Spring 1998 Lecture Notes