Week 1: Introduction to the Financial System
Reading
- Introduction: Chapter 1, pp. 2-5
- Financial institutions: Chapter 1, pp. 4-15
- Financial crises: Chapter 1, pp. 15-18
- Functions of money: Chapter 2, pp. 28-32
- Payments system: Chapter 2, pp. 32-39
- Money supply: Chapter 2, pp. 40-48
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Intro to Financial System
(Slides Version)
Due Friday 11:59 PM
Week 2: Federal Reserve System
And Introduction to Using ECODATA with R!
Reading
- Structure of the Federal Reserve System: Chapter 13, pp. 434-444
- Central bank independence: Chapter 13, pp. 454-460
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Setup for Using ECODATA in Posit Cloud
- Week 2 Homework: Exploring Monetary Policy in R with ECODATA
Located in the Posit Cloud Project
See Week 2 Homework folder
Due Friday 11:59 PM
Week 3: Money Supply Process
Reading
- Fed's balance sheets and open market operations: Chapter 14, pp. 469-477
- Money multiplier: Chapter 14, pp. 481-488; 501-502
- 2007-2009 Financial Crisis: Chapter 14, pp. 488-490
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Homework: Money supply process
(Slides Version)
Due Friday 11:59 PM
Week 4: Monetary Policy Tools
Reading
- Goals of monetary policy: Chapter 15, pp. 503-510
- Monetary policy tools: Chapter 15, pp. 511-520
- Modern policy tools: Chapter 15, pp. 521-531
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Homework: Policy Tools
(Slides Version)
Due Friday 11:59 PM
Week 6: Interest Rates and Rates of Return
Reading
- Present values and future values: Chapter 3, pp. 55-63
- Debt instruments: Chapter 3, pp. 63-67
- Yield to maturity: Chapter 3, pp. 68-78
- Rates of return: Chapter 3, pp. 79-83
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Homework: Rates of Return
(Slides Version)
Due Friday 11:59 PM
Week 7: Markets for Bonds and Money
Reading
- Bond markets: Chapter 4, pp. 102-115
- Markets for money: Chapter 4, pp. 120-123
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Homework: Asset Supply and Demand
(Slides Version)
Due Friday 11:59 PM
Week 8: Risk and Term Structure of Interest Rates
Reading
- Risk structure of interest rates: Chapter 5, pp. 140-145
- Liquidity and taxes: Chapter 5, pp. 148-151
- Term structure: Chapter 5, pp. 153-165
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Homework: Risk and Term Structure
(Slides Version)
Due Friday 11:59 PM
Week 10: Market Failures
Reading
- Transaction Costs Chapter 9, pp. 285-286
- Adverse selection Chapter 9, pp. 287-294
- Moral hazard Chapter 9, pp. 295-301
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Homework: Risk and Term Structure
(Slides Version)
Due Friday 11:59 PM
Week 11: Banking and Financial Crises
Reading
- Bank liabilities: Chapter 10, pp. 311-317
- Bank assets: Chapter 10, pp. 317-321
- Managing bank risks: Chapter 10, pp. 325-333
- Origins of financial crises: Chapter 12, pp. 393-395
- Financial crisis of 2007-2009: Chapter 12, pp. 406-411
- Financial crisis and financial regulation: Chapter 12, pp. 411-425
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Homework: Financial Crisis
(Slides Version)
Due Friday 11:59 PM
Week 12: Macroeconomic Dynamics
Reading
- Aggregate demand: Chapter 17, pp. 597-601
- Aggregate supply: Chapter 17, pp. 601-609
- Equilibrium and market dynamics: Chapter 17, pp. 609-616
- Monetary policy: Chapter 17, pp. 616-625
Resources
Exercises
- Canvas Multiple Choice Quiz
due Wednesday 11:59 PM - Homework: Financial Crisis
(Slides Version)
Due Friday 11:59 PM
Instructor
James Murray, Ph.D.
  2106 Wittich Hall  608-785-6828
    608-406-4068
  jmurray@uwlax.edu
Student Hours Appointments
Student hours appointments are available with as little as a 30-minute notice, and are generally available at the following times:
- 8:30 AM - 10:30 AM Mon/Wed/Fri
- 1:00 PM - 2:30 PM Mon/Wed/Fri
- 2:30 PM - 4:30 PM Tue/Thurs
Student Hours Appointments
Student Hours Satisfaction Guaranteed!
I guarantee that coming to ask questions on material you do not completely understand will increase your grade in the class. If you come to student hours and still get questions wrong on the exam about the topic we discussed, I will refund those points! This guarantee is subject to the following conditions:
- Refund points are good for up to two topics on each exam, and up to a total of 10 percentage points per exam.
- You and I must agree in writing using the following online form:
https://murraylax.org/studentguarantee/. On this form, we document very specifically what we discussed and we both agree that I have explained the topic sufficiently and that you have acquired a good understanding from our discussion. - Often we discuss more than one topic in student hours. In such circumstances, a guarantee for the student hours visit will not cover everything we discussed, only one specific topic.
- You must fill out the above form after your student hours appointment, and on the same day. The form must be filled out at least 12 hours before the exam time.
- You must have attended class when the topic was taught.
- Only three guarantee forms may be filed before each exam.
- Only one guarantee form may be filed on a single day. Therefore, filing two or three guarantee forms before an exam will require at least two or three separate student hours visits, respectively.
- After the exam, if you get questions wrong that were guaranteed, it is your responsibility to recognize this and present your graded exam and your copy of the guarantee form to notify me you should get the points refunded.
- Due to time limitations, the student hours guarantee does not apply to the final exam.
Note: This is not "extra credit for going to student hours" (there is no extra credit for this class). This is a guarantee that student hours are effective at improving your learning and your grade, and past semesters have revealed that is a much more likely outcome than receiving points back on your exam.