FNCE 493 : Money and Banking

This course addresses classical and contemporary issues in the theory of money, banking, and financial institutions. Topics covered include: the gold standard, the structure of central banks and the Federal Reserve system, theories of money demand and money supply, the relationship between money supply and overall economic activity, the theoretical and practical aspects of monetary policies and money creation, the efficacy of fiscal policies versus monetary policies, and the role the Federal Reserve plays in economic stabilization. We shall pay particular attention to the money creation plays in economic stabilization. We shall pay particular attention to the money creation process, to endogenous money versus exogenous money, and to the ability of the Federal Reserve to stabilize the economy.