Syllabus spring 2021 PDF

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Download Syllabus spring 2021 PDF

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ECON-UA 231: Money and Banking. Spring 2021 – Section 10 Instructor: Email: Phone: Office: Office hours:

Maharukh Bhiladwalla [email protected] 212-998-3815 (office not in use this semester) 19 W 4th Street, Room 703 M 5 - 6, and by appointment*

Teaching Assistants: Email: Office hours:

Aleksandra Alferova

Remi Bellefleur

[email protected]

[email protected]

Fri 10 -11 am EST

Fri 11:15 am – 12:15 EST

Course website: NYU Classes (access via http://classes.nyu.edu/) * When you email for an appointment tell me which course & section you are in and your free times M, T, W, Th YOU MUST CHECK YOUR EMAIL EVERYDAY so you don’t miss any changes to testing dates and informational requirements COURSE OBJECTIVE The objective of this course is to provide students with an introduction to the operation of financial markets and institutions, including the banking system. Students are introduced to the determination of interest rates, pricing of financial instruments, portfolio choice, the basic structure and operation of the banking system, the management of banks and other financial intermediaries, the basics of monetary policy and the Federal Reserve’s response to the pandemic. Additionally, we will discuss the role of asymmetric information in the last financial crises. Topics include the subprime mortgage market meltdown, bank failures and steps taken to contain the damage. PRE-REQUISITES ECON-UA 1 and 2 (Principles) or ECON-UA 5 (Introduction to Economic Analysis). COURSE READINGS AND MATERIALS Required Textbook: The textbook for this course is Money Banking and the Financial System, by Glenn Hubbard and Patrick O’Brien, Pearson, 3rd edition. This course is part of the Follett Access program. Follow instructions at the end-of-syllabus attachment for details regarding options for acquiring the textbook Additional Readings: Lectures, recitation discussions and exam questions will also be based upon recent news articles (typically from The Wall Street Journal, the Economist, and the Federal Reserve publications). These articles will be posted on NYU Classes as the semester progresses.

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If you are confused about your MEL options a rep from Pearson publishers will be in class for 10 min to take your questions and introduce you to the MEL on Mon Feb 1 st at the beginning of class. If you come late you will miss important information she will be giving out. DO NOT ORDER the book with MEL access code FROM AMAZON or any other website. (i) the access code will not work unless you get it by following instructions at the end of this syllabus and (ii) It will arrive a week before the first exam and you will miss a lot of assignments. I will not be able to help you at all if that happens (I technically cannot reopen past/missed assignments – software does not allow it).

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Required Software: We will use MyEconLab – an interactive program for online assignments. Homework assignments will be completed and graded online. You are required to use MyEconLab (MEL). (See the end-of-syllabus for details regarding registering for MyEconLab).

PROBLEM SETS There will be two types of problem sets: I.

Graded Problem Sets in MyEconLab: Graded problem sets will be completed online in MyEconLab. MyEconLab problem sets will constitute 20% of your total course grade. I will drop the lowest score among your problem sets. These problem sets are located under the Homework tab of MyEconLab, NOT the Quizzes & Tests tab. The Quizzes & Tests tab contains additional practice problems that are not graded. The purpose of the MyEconLab problem sets is to test your understanding of the fundamental concepts and computations in this course. The exam questions, on the other hand, will be more complex and partially essay based. Please note that MyEconLab will NOT accept late homework submissions. This is beyond my control. If you submit a homework assignment even a few seconds late, your score for this assignment will be zero. Consequently, it is a good idea to try to complete your MyEconLab homework assignment at least one day prior the actual deadline, if you want to avoid missed submissions due to technical problems and crashes. Check MyEconLab regularly so as not to miss the deadline for any homework. MEL is set up so that I cannot go back in and open up assignments you missed no matter the reason for missing them.

II. Ungraded Problem Sets Posted on NYU Classes throughout the semester. While these problem sets will not be graded, successful completion and understanding of these questions will be crucial to your performance in the course. These questions will be of similar complexity as the exam questions, and will be more challenging than the MyEconLab problem sets. The TA will explain solutions to these problem sets during recitation. It is strongly recommended that you attempt the problem set questions prior to attending recitation. RECITATION You are required to register for one of the recitation sections, though you can attend any recitation that you did not sign up for. I strongly recommend that you go to the weekly recitation sections and use this resource to receive: 1. Clarification regarding material covered in class 2. To receive solutions to the graded and ungraded problems sets and practice exams. EXAMS AND GRADING Your grade will be based upon two midterm exams, one semi-cumulative final exam and the problem sets:

While exams will consist of multiple-choice questions, the questions will still require computations and graphical techniques before you can circle the answer. Exams will be based on material covered in class and recitations. Day

Time

Room/proctored in zoom

Midterm 1 Midterm 2 Final

25% 25% 30%

March 4 thu 8 pm EST Must be visible in zoom to get a grade April 8 thu 8 pm EST Must be visible in zoom to get a grade * May 10, mon 8 pm EST Must be visible in zoom to get a grade (*subject to change depending on registrar final exam schedule)

MyEconLab

20%

Because of the ‘no make-up’ policy you should not book tickets for travel or any event on exam dates on the assumption that you will be able to reschedule. Make sure your family and friends also know this in case they are making plans for you.

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Weight

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Exam

Advance holiday plans or airline ticket reservations are not accepted as a reason for missing an exam. There is NO MAKE-UP exam or shifting weight to other exams for any kind of planned absence.

There will be NO extra credit work for this course. You will receive the grade you earn (not a grade that you “need to graduate” or for some scholarship etc) – the final letter grade for the course is non-negotiable. EXAM POLICIES You are responsible for any material covered in class or recitation, as well as the assigned readings. You will need a calculator for the exams. Calculators embedded in cell phones or any other communication devices are

NOT ALLOWED. A make-up exam will NOT be administered. If you miss one of the mid-terms for whatever reason, the weight will be transferred to the final if you are able to document the reason. If you miss the final, you will get an “I” (incomplete) grade. In the event of an emergency, please contact me as soon as possible. In the event you are absent from an exam, you will need to provide documentation (medical note for example **). A week before the test you will receive an exam information sheet with date and time clearly mentioned on it . The excuse “I misread the date or time” or “I did not receive or read the exam info sheet” or “I overslept” or “my alarm did not go off” or “I had technical problems uploading my answers” will earn you a grade of 0 for the missed test.

The economics department does not grant incompletes, except in cases of genuine emergencies, which must be documented and approved. The appeal and documentation must be provided before the exam, not after the exam. **An acceptable medical documentation is one that shows hospitalization for an emergency or a note by the doctor who treated you saying that “you were advised to miss the exam on the exact date/ time it was administered”. A note from the health center staff or a nurse stating that you were seen at the health center is not acceptable.

Course Policies – NO EXCEPTIONS If you think you cannot adhere to the following course policies, please do not take the course. You are responsible for anything covered in class, recitation, and assigned as required reading. If you miss class, make sure to get the material from a friend or classmate. Keeping some contact information of fellow classmates is a good idea. You must have access to the NYU Classes website. All announcements, readings, practice tests and weekly recitation problem sets will be posted on NYU Classes and emails will be sent via NYU Classes. You must check your NYU email every day so you don’t any exam or homework related instructions, and respond with any information you are asked to provide right away – it’s the only way I can send class-wide announcements that I would otherwise make in the classroom. Thus, it is important that you actively use your NYU e-mail account, or have appropriate forwarding set up.

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If you have a conflict with my regularly scheduled office hours, please contact me to arrange for a mutually convenient time for us to meet whenever you need to clarify or discuss anything course related.

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Copies of the material to be discussed in class will be posted under ‘Resources’ section on the NYU Classes web site. You are expected to download these materials and read them before class – it will make it easier to follow the lecture. Posted material will not be a complete record of what goes on in class, but these materials will assist you in taking notes. The only way to obtain a complete record of what goes on in lecture is to attend lectures. If you miss a lecture, make sure to learn the relevant material before the next class, since almost all the material builds on earlier classes. Regular attendance and class participation will affect your grade, at the margin.

COURSE SCHEDULE Introduction Textbook reading: Chapter 1 Money and the Payments System Textbook reading: Chapter 2 Interest Rates and Rates of Return Textbook reading: Chapter 3 Determining Market Rates of Interest Textbook reading: Chapter 4 Risk Structure and Term Structure of Interest Rates Textbook reading: Chapter 5 The Stock Market, Information and Financial Efficiency Textbook reading: Chapter 6 Transactions Costs and Asymmetric Information and the Structure of the Financial System Textbook reading: Chapter 9 Asymmetric Information, the Subprime Mortgage Market and the Current Financial Crises Reading: Notes and articles posted on NYU Classes Economics of Banking Textbook reading: Chapter 10 Investment Banks, Mutual Funds, Hedge Funds and the Shadow Banking System Textbook reading: Chapter 11 The Federal Reserve and Central Banking Textbook reading: Chapter 13 The Federal Reserve’s Balance Sheet and the Money Supply Process Textbook reading: Chapter 14 Monetary Policy Textbook reading: Chapter 15

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ACADEMIC INTEGRITY As members of the NYU community, we are all expected to adhere to high standards of intellectual and academic integrity. Please review the academic integrity code: http://cas.nyu.edu/academic-programs/bulletin/policies/academic-policies.html#5. Violations of these standards will automatically result in failure in the course and will be referred to the discipline committee.

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The Market for Foreign Exchange, Foreign Exchange Interventions and Exchange Rates Textbook reading: Chapter 8 and 16

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Note: The ‘Opt Out’ option applies only to any student who is retaking the course and has already completed MEL home works in a previous semester. Once you have registered by following above instructions you will be asked for the course ID to get access to the home works and ebook. The course ID is bhiladwall05291. If you are confused with the

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TEXTBOOK + MEL PURCHASE OPTIONS

above instructions just wait and hear what the Pearson rep has to say on mon 2/1. Again, be sure to come

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on time for class that day – she will be there in the first 10 min....