Erick Eschker
E-mail: ee3@humboldt.edu
Phone: (707) 826-3216
Office: Siemens Hall 213A
Office Hours: Monday and Wednesday 12:30-1:45pm, and by appointment
Required Reading: The Economics of Money, Banking, and Financial
Markets,
by Mishkin, 6th edition Update,
The Wall Street Journal,
Reserve Materials, Handouts, Course Web Page
Recommended Reading: Mishkin text Web Page, The Economist, Challenge
Learning Outcomes: After taking this course the student will be able to 1) describe the functions, history, and definitions of money 2) explain the bond market 3) describe theories of interest rate determination 4) explain why information is important to financial markets 5) demonstrate ability to use economic models of the economy 6) explain policy tools/choices central banks have for monetary policy 7) explain how exchange rates are determined and 8) discuss current issues facing financial markets.
Course Grade: The grade for this course is based on five parts: an oral presentation (15%), problem sets (25%), midterm exam (20%), an essay (20%), and a final exam (20%).
Problem Sets: Problem sets are due at the beginning of class on the day they are due. No late homeworks will be accepted. The best 5 out of 6 scores are counted. I encourage students to find a study group to collaborate with on homeworks. However, each student is to turn in homeworks that they prepared themselves. These problem sets give you practice with the material that I consider most important—they are one of your best study tools for the exams. Problem sets are due September 12, 26, October 10, 31, November 19, and December 12.
Midterm: The Midterm will be Tuesday, October 15. No alternate times will be provided.
Essay: An essay will ask and answer an important question related to banking, finance, or economic policy. The essay will clearly ask a question and indicate why the issue merits attention. Data may be collected to support an argument. Finally, the conclusion will be clearly stated. The best essays will argue effectively using the tools that we've learned in class. In other words, show me that you've learned something! The essay will be typed, double-spaced, and 5-7 pages long (not including references or long tables and figures). All topics must be approved by the instructor. A one-paragraph proposal that includes the question and the strategy for answering it is due Tuesday, October 22. The essay is due Thursday, December 5.
Possible essay topics include: How will future payments for e-commerce be made? Will the European Monetary Unit improve european economies? What is the importance of recent accounting scandals on the banking industry? Will U.S. banks benefit from Basel Accord compliance? Can small banks compete with large ones given recent financial deregulation? What are the key financial sector roadblocks in developing countries? Should the U.S. try to weaken the dollar? Is Japan pursuing the best policies to expand its economy? Should the Federal Reserve have bailed out the LTC Hedge Fund in fall 1998? Do we need to worry about deflation in the U.S.?
Final: The final for this class will be on the official day listed by the registrar’s office: Thursday, December 19 at 8-9:50am. The final is comprehensive. No alternate time will be provided.
Cheating: The only collaboration allowed is on the problem sets. "Formula" sheets are not allowed in the exams. You are to write your own essay in your own words. Any one caught cheating will be prosecuted to the fullest extent.
Internet Access: This course will make much use of the Internet:
Our homepage is at http://www.humboldt.edu/~ee3/econ435/index.html. This page contains important course-related information, such as homework solution sets, last-minute exam reminders, and practice exam questions. Please visit it often. I check my e-mail quite often. An e-mail question will likely have the greatest chance for a speedy reply. Many important and last minute materials may be posted electronically. You should make a point to regularly check this class’ Internet site. I assume you have a functional understanding of, and access to, e-mail and the World Wide Web. If not, please see me or one of the many specialists on campus who can assist you.
Course Outline: The following is a guide to the topics we will cover, with corresponding chapters from the text. Adjustments may be made if warranted.
Remember that I am available to help you with the class. If you have any concerns, it is always best to see me earlier rather than later. Don’t hesitate to contact me.