Economics 4060
Money and Banking and Capital Markets
Fall Semester 2015
Georgia Institute of Technology
Dr. Willie J. Belton
School of Economics
221 Bobby Dodd Way
Office # 238 Old CE Building
Phone: (404) 894-4388
Office Hours: 3:15pm to 4:30pm (Monday) and 3:15pm to 5:00pm. (Wednesday)
Text: The Economics of Money, Credit, Banking and Financial Markets Tenth Edition
by Frederic S. Mishkin
Course Requirements, Examinations and Grading:
Course Description: This is a course on money and basics of financial intermediation. It
is assumed that students have already taken a class in principles of economics and are
familiar with the basics of economic reasoning. This means you should have completed
either a one-semester course in Principles of Economics or a two-semester sequence
in Principles of Microeconomics and Macroeconomics. Students should NOT take this
class if they are currently enrolled in Principles of Microeconomics (ISC 202) or
Principles of Macroeconomics (ISC 203).
We will study the role of money and financial markets in modern market-oriented
economies. We will examine the unique roles played by banks and other financial
intermediaries as well as the role of organized markets for financial assets, such as the
stock and bond markets. We will examine the role of the central bank or monetary
authority both as a regulator and as the ultimate controller of a nation’s money supply.
We will consider the potential role that monetary policy plays in economic stability and
the interaction it has with exchange rate policy. A familiarity with calculus and basic
statistics is an advantage in this class, but is not a hard prerequisite. Students should be
familiar and comfortable with algebra.
There will be fifteen quizzes given during the term. These quizzes will occur on the
dates specified below. Each quiz will cover material covered during the previous four
lectures. The best twelve of fifteen quiz grades will be used to calculate the student’s
final class average. If a student is unhappy with his/her final quiz average then a
comprehensive final exam will be offered during the final exam week. If a student
chooses to sit for the comprehensive final, the grade earned on this final will account for
100% of the final grade i.e., the quiz average must be forfeited. Student(s) opting to take
the final exam must contact Professor Belton to schedule an exam time during the final
exam week. Students can choose to complete weekly homework assignments that will be
graded. The average grade received on the fourteen homework assignments can be used
to substitute for the lowest of the required twelve quiz grades. This substitution can only
take place if the student receives and average homework grade of 90% or above.
