ECONOMICS 200
THE ECONOMICS OF MONEY, BANKING, AND FINANCIAL MARKETS
SPRING SEMESTER 2010
Instructor:
Office:
Office Hours:
Phone:
E-mail:
Dr. Dean Croushore
RSB 333
Monday & Wednesday: 12:30 – 1:20, and by appointment
287-1961
dcrousho@richmond.edu
Classroom:
RSB 212, Section 1: MW 1:30-2:45, Section 2: MW 3:00–4:15
Course Description: This course takes a policy-oriented approach to analyzing the financial and
monetary systems of the U.S. economy. Our focus will be on the FOMC and the major decisions
it makes about setting monetary policy. We will examine the financial system and the role of
money; financial markets and instruments; financial institutions; selected elements of
macroeconomics, including a discussion of international economics and the importance of
exchange rates; and monetary policy, including the money supply process and the conduct of
monetary policy in the United States, with an emphasis on current policy issues. We will discuss
current economic events and how they affect financial markets and monetary policy.
By taking this course, you will: (1) learn the fundamentals of the financial and monetary systems
of the U.S. economy; (2) understand how economic news affects financial markets and how it
influences the decisions of policymakers; (3) understand how to think analytically, using
economic theory to solve problems; (4) study several topics in greater depth than provided by the
textbook. You should average about three hours of preparation time for each class session. You
are expected to come to class prepared every day.
Prerequisites: Economics 101 and 102.
Required Textbook:
M&B by Dean Croushore, published by Cengage.
Honor Policy: Students are expected to abide by the University of Richmond Honor Code. You
must do your own work on all exams and any other written work.
General Policies: Please e-mail me if you must miss class for any reason, preferably in advance.
Assignments will be posted on Blackboard (not CEO). During class, you must turn off your cell
phone and you must not engage in activities that could distract the class, such as reading the
newspaper. Late work will not be accepted.
Extra Credit: You may earn 1 point of extra credit by finding a new error in any of the course
materials (textbook, study guide, homework answers). Please send me an e-mail with any errors
you find. A list of known errors can be found on Blackboard.
Course Grade: Percentages
25 — Exam I
25 — Exam II
35 — Comprehensive final exam
Wednesday, February 10, in class
Wednesday, March 24, in class
Section 1: Wednesday, April 28, 2-5 p.m.
Section 2: Thursday, April 29, 2-5 p.m.
5 — Class participation & problem solving
5 — Memos on readings
5 — Current events oral report and memo
Exams: There are two exams during the semester, plus a comprehensive final exam. Material on
exams is discussed in class or is found in assigned readings. Exams must be taken at the
assigned dates and times except for university-authorized events (in which case, please notify me
as early as possible about the conflict and provide documentation).
Class Participation: Five percent of your grade is based on class participation, including
answering problems assigned for homework. You should come to class prepared every day,
which means reading the assigned material and doing the assigned problems at the end of each
chapter. You will be called on in class to answer questions and you may be asked to show how
you solved a problem. Someone who actively participates will get 5 points; someone who
participates somewhat will get 4 points, someone who seldom participates will get 3 points,
someone who does not participate much and misses three or more classes will get 2 points,
someone who misses 5 or more classes will get 1 point, and someone who participates little and
is often absent or tardy will get 0 points. Please note: by Robins School rules, if you miss more
than 7 classes during the semester, your grade for the course is a V (equivalent to an F for your
GPA).
Memos on readings: I will post a list on Blackboard of extra readings for each chapter, along
with questions to answer about each reading and possibly data-related questions. You must pick
three readings during the semester and write a one-page memo for each. Only one reading may
come from each chapter. Each memo should provide a brief synopsis of the reading and answer
the questions related to it. If you do not do three readings, your grade will be 0 out of 5. Do not
wait until the last week of class to do this requirement. Each memo is due within one week after
we complete discussion of the chapter in class.
Current Events Report and Memo: Early in the semester, you will be assigned one particular
macroeconomic variable to follow throughout the semester. Each variable is released monthly.
When your variable is released, you are to prepare a short (two-minute maximum) oral report on
your variable and show at least one graph that you have prepared yourself using Excel. In your
oral report, you must be clear and concise: (1) describe the new numbers that were released and
any revisions to prior data; (2) put the new data in historical perspective; (3) explain the
implications of the data for our understanding of the economy and its implications for monetary
policy. Your graph must use data on your variable to illustrate recent trends in your data. You
must post the graph in your netfiles outbox and open up the file at the beginning of class. At the
end of the semester, you are to write up your analysis of each release over the semester in a brief
(three-page text maximum; extra for charts) memo that summarizes your oral reports and
provides an overall evaluation of what the data mean for the analysis of the economy and for
monetary policy. In your memo, you must prepare at least two explanatory graphs or tables
(using Excel). The memo is due by Wednesday, April 14, in class.
Class Schedule for Econ 200, Spring 2010:
Note: coverage of topics subject to change; this is a rough guide only
Week
1
2
3
4
5
6
Jan.
Feb.
Feb.
11, 13
18, 20
25, 27
1, 3
8, 10
15, 17
The Financial System
Introduction, Chapters 1-2
Chapters 3-4
Chapters 4-5
Chapters 5-6
Chapter 6, Exam 1
Chapter 7
9
10
Banking
Feb. 22, 24
Chapter 8
Mar. 1, 3
Chapter 9
Spring break, week of March 8
15, 17
Chapter 10
22, 24
Chapter 10, Exam 2
11
Mar.
7
8
12
13
14
Apr.
29, 31
Macroeconomic Modeling
Chapter 14
Central Banking
5, 7
Chapters 15-16
12, 14
Chapters 16-17
19, 21
Chapters 17-18