Department of Economics
Econ 303: Money and Banking
Class Times: Monday and Thursday 10:00-11:15am, SSE CP36
Course Instructor: Dr. Dalia ElEdel
Email: deledel@aucegypt.edu
Office Hours: Thursday 12-1:30pm or by
Appointment, Room 1040.
Office Telephone: 2615-3189
Course Description:
This course focuses on developing students’ understanding of the economics
of money, banking, financial system and monetary policy. More specifically,
the course comprises three main parts. The first part provides an overview of
the financial structure and institutional arrangements, in addition to a review
of money, interest rates and their behaviour. The second part concentrates on
an in-depth study of the banking structure, functions of the Central Bank and
prudential regulation. Moreover, there is an emphasis on the global financial
crisis. The third part reviews monetary policy, money creation process and the
effect of money on output and inflation.
1
Textbooks:
Frederic S. Mishkin. The Economics of Money, Banking & Financial Markets.
New York: Pearson & Addison Wesley, 9th edition, 2009.
Course Outline
Week
Topic
Chapters
1
Why study money,
banking and financial
markets?
1
1
An overview of the
financial system
2
2
What is money?
3
2-3
Understanding interest
rates
4
3-4
The behaviour of
interest rates
5
4-5
The risk and term
structure of interest
rates
6
FIRST MIDTERM EXAM
6
The foreign exchange
market
17
7
Financial crises
9
8
Banking and the
10
management of financial
institutions
2
9
The Central bank
14
SECOND MIDTERM EXAM
10
Money multiplier
14
11
The conduct of
monetary policy
15+16
12
The international
financial system
18
13
Transmission mechanism 23
of monetary policy
14
Money and inflation
24
FINAL EXAM
-Useful websites:
-Central Bank of Egypt: www.cbe.org.eg
-The Federal Reserve: www.federalreserve.gov
-The Economist: www.economist.com
-Business Week: http://www.businessweek.com/
-Egyptian Centre for Economic Research: www.eces.org.eg
Assessment
First Exam: 20%
Second Exam:20%
Final Exam: 30%
Paper: 20%
Assignments: 5%
Class Attendance and Participation: 5%
3
Course Guidelines:
-Lecture notes are posted on the blackboard. You are required to study lecture
notes, class discussions and related chapters in the book.
-Assignments will be due one week from the day it is announced. Students are
expected to submit their assignments by email or in person before its due
date. Late assignments are not accepted. Additionally, even though students
are encouraged to work in groups, each student is expected to submit his/her
individual answer. Identical copies of assignments may construe a violation of
academic integrity.
-The paper will be announced at least two weeks prior its due date and
extensive discussion of the paper and its requirement will be explained in class.
-Exams will be a mixed format of multiple choice, problems/ short essays
questions. Exams are not cumulative. There will be no make-up exams, and
exams are not subject to curving. I have zero-tolerance for cheating in exams;
students caught cheating in exams will be highly penalised and reported to
the Academic Integrity Committee for further penalties. Check the
University’s violation of academic integrity for more information.
Grading System:
A
93%-100%
A-
89%-92%
B+
85%-88%
B
81%-84%
B-
76%-80%
And so forth
4