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Economics 3400 Prof. Duane W.

Rockerbie
Money and Banking University Hall, C-584
Fall 2017 Phone / Fax: 329-2517
E-mail: rockerbie@uleth.ca

Prerequisites:

Economics 1012.

Time and Room:

Lectures are Tuesday and Thursday, 10:50 – 12:05 in room W-400. Please be on time.

Course Description:

Economics 3400 introduces the student to an economic treatment of money and banking. Specifically, the
course shall focus on a number of topics: what is money and why is it used?; the history and workings of
the Canadian banking system; the Canadian money supply process; the interaction of money demand and
money supply in determining interest rates, prices and income; domestic monetary policy; and banking
systems in other countries. An introduction to theoretical monetary economics will be conducted,
principally using the IS-MP model that incorporates monetary rules. In addition much discussion of current
economic events will done. Students interested in this field should consider taking Economics 4400 where
more advanced models are discussed.

Course Text:

Frederick Mishkin and Apostolos Serletis. The Economics of Money, Banking and Financial Markets.
Sixth Canadian Edition. Pearson Canada Inc 2016. ISBN: 978-0-13-389738-8

Course Grading:

Mid-Term exams: 2 at 20% each


Final exam: 30%
Assignments: 30%

These percentages are fairly rigid, however provision exists for some minor adjustment if a student has
shown considerable improvement during the course. Students are expected to attend exams promptly. If a
student cannot attend an exam for a valid reason (at my discretion), please inform me in advance so an
alternate time can be arranged. Exam dates will be announced well in advance and will be available on the
webpage, in addition to assignments. Weekly quizzes will be completed on the MyLab web site. Details
how to access the web site will be provided in an email to each student. There will be no quiz the week of
an exam.
Course Readings:

1. What is money and why bother? Chapters 1-3


2. Financial intermediaries and instruments. Chapter 3
3. Financial institutions and regulations Chapter 8, 10, 12

Exam I

4. The role of the Bank of Canada Chapter 14


5. Money creation, tools and targets Chapters 15-17

Exam II

6. The IS-MP model of monetary policy Chapters 21-22


7. The AD-AS model and expectations Chapters 23-24

Final Exam

The date of each mid-term exam will be announced well in advance. If there is a difficulty in attending a
mid-term exam for a valid reason (medical, university athletics, etc.), please consult with me prior to the
exam date. However the validity of your reason is determined by myself. The date of the final exam is
December 15, 2:00-4:00. Please make your plans accordingly. Final exam attendance is not negotiable,
however if a student has a valid reason to miss the exam, please consult with an Arts and Science advisor.

The university regulations regarding academic offenses is outline on pages 69-70 of the university calendar.
Please insure that you do your own work.