ECON 3320                                                                           E.C. Erickson
Money and Banking                                                                Office: C-1O1C 667-3338
C-103 TR 12:55-2:22                                                             Office Hours: MW 11:00-1:00 
Spring 2006                                                                             TR 11:15—12:30 & by Appt.             
EErickson@csustan.edu

 Exam 1       Exam 2        Review Question1  Final Review              

Text: Principles of Money, Banking, & Financial Markets by Lawrence S. Ritter,
        William L. Silber, and Gregory F. Udell, 11^th Edition, Addison Wesley Longman,
        2004 (identified as RSU).

Syllabus & Assignments
Part I: Rudiments of Monetary Analysis (weeks 1─3)
            RSU Chapters 1 – 5 and 8─9
       1. Introduction to Monetary Economics
       2. Basic Concepts
       3. The Demand for Money
       4. Determination of the Price Level
       5. Money and Capital Markets/Instruments

Part II: Monetary Macroeconomics (weeks 4─7)
            RSU Chapters 22─29
       1. The Static Classical and Keynesian Models
       2. Steady Inflation
       3. Inflation Dynamics
       4. Concept of Rational Expectations
       5. Inflation and Unemployment

Part III: Federal Reserve and Financial Intermediation (weeks 8─11)
              RSU Chapters 11─13 and 17─21
       1. The Federal Reserve System
       2. Financial Intermediaries and the Credit Market
       3. Checkable Deposits and M1
       4. Effects of Federal Reserve Actions
       5. Monetary Policy Operating Procedures

Part IV: International Monetary Economics (weeks 12─13)
              RSU Chapter 10
       1. Purchasing Power Parity
       2. Interest Rate Parity
       3. Fixed Exchange Rates
       4. Flexible Exchange Rates

Approximate Grade Distribution:
Exams                          45%
Final Exam                   35%
Assignments                 20%