《货币银行学》课程教学大纲 Economics of Money, Banking and Financial Markets（英文）

SyllabusMoney, Banking and Financial MarketsSchool of EconomicsSeptember 1, 2007, WHUTCourse ObjectivesThis is a course that is intended to help you understand the role that money,banking and financial markets play in the businessenvironment that you will face in thefuture.This course develops a series of applications of principlesfrom finance and economicsthat explore the connection between financial markets and the economy. In addition, it will focus on many public policy issues andexamine how the most important players in financial markets, central banks, operate and how monetary policy is conducted. Thecoursewill havea strong international orientation byexamining monetary policy in many countries and possiblereforms of theinternational financial system. We will also focus on current events reported in the financial press and will use the analytic frameworksdeveloped in class help us to understand these developments.REQUIREDTEXTS(M)StephenG.Cecchetti,MONEY,BANKING,ANDFINANCIALMARKETSOTHERREFERENCEBOOK1. (M) Mishkin, F.S., The Economics of Money, Banking and Financial Markets, Sixth Edition2.Lawrence S.Ritter,William L. Silber,Principles of Money, Banking, and Financial Markets Brian Kettell:Financial Economics（中译本，中国金融出版社，2005）3.黄达，金融学，中国人民大学出版社，2009年版LENGTHAND CREDIT56 hours,3creditsASSEMENT10%Class ParticipationPresentation and assignment 20%70%Exam/paperTENTATIVECLASSSCHEDULEANDCHAPTERSPartI Money and the Financial System(10 h)Chapter 1 An Introduction to Money and the Financial System (2 h)1.1 Why to study money, bank and financial system?1.2Fivepartsof thefinancial system1.3Fivecoreprinciplesofthefinancial systemChapter 2 Money(2 h)2.1Characteristics of Money2.2EvolutionofthePaymentsSystem:CommodityMoney,FiatMoney,andChecks2.3The Future of Money2.4 Measuring MoneyChapter3Financial Instruments,Financial Markets,and Financial Institutions (6h)3.1 Introduction: Indirect and Direct Finance3.2Financial Instruments3.3 Financial Markets3.4Financial InstitutionsPart II Interest Rates(12 h)Chapter 4Future Value, Present Value, and Interest Rates ... (4 h)4.1 Future Value and Compound Interest4.2PresentValue4.3 Internal Rateof Return4.4CouponBondandPresentValue4.5Real andNominal Interest Rates

Syllabus Money, Banking and Financial Markets School of Economics September 1, 2007, WHUT Course Objectives This is a course that is intended to help you understand the role that money, banking and financial markets play in the business environment that you will face in the future. This course develops a series of applications of principles from finance and economics that explore the connection between financial markets and the economy. In addition, it will focus on many public policy issues and examine how the most important players in financial markets, central banks, operate and how monetary policy is conducted. The course will have a strong international orientation by examining monetary policy in many countries and possible reforms of the international financial system. We will also focus on current events reported in the financial press and will use the analytic frameworks developed in class help us to understand these developments. REQUIRED TEXTS (M) Stephen G. Cecchetti, MONEY, BANKING , AND FINANCIAL MARKETS OTHER REFERENCE BOOK 1. (M) Mishkin, F.S., The Economics of Money, Banking and Financial Markets, Sixth Edition 2. Lawrence S. Ritter ,William L. Silber ,Principles of Money, Banking, and Financial Markets Brian Kettell：Financial Economics （中译本，中国金融出版社，2005） 3. 黄达, 金融学，中国人民大学出版社，2009年版 LENGTH AND CREDIT 56 hours; 3credits ASSEMENT Class Participation 10% Presentation and assignment 20% Exam/paper 70% TENTATIVE CLASS SCHEDULE AND CHAPTERS Part I Money and the Financial System (10 h) Chapter 1 An Introduction to Money and the Financial System (2 h) 1.1 Why to study money, bank and financial system? 1.2 Five parts of the financial system 1.3 Five core principles of the financial system Chapter 2 Money (2 h) 2.1 Characteristics of Money 2.2 Evolution of the Payments System: Commodity Money, Fiat Money, and Checks 2.3 The Future of Money 2.4 Measuring Money Chapter 3 Financial Instruments, Financial Markets, and Financial Institutions (6 h) 3.1 Introduction: Indirect and Direct Finance 3.2 Financial Instruments 3.3 Financial Markets 3.4 Financial Institutions Part II Interest Rates (12 h) Chapter 4 Future Value, Present Value, and Interest Rates . (4 h) 4.1 Future Value and Compound Interest 4.2 Present Value 4.3 Internal Rate of Return 4.4 Coupon Bond and Present Value 4.5 Real and Nominal Interest Rates

Chapter5Bonds,Bond Prices, and theDetermination of Interest Rates(8 h)5.1 Bonds (Credit Market Instruments) and Present Value5.2Bond Yields5.3 Bond Market: Supply and Demand5.4 Why Bonds Are Risky?5.5Risk Structure of Interest Rates5.6Term Structure of Interest RatesPart I Financial Institutions (14h)Chapter 6TheEconomics of Financial Intermediation(4 h):6.1 Flow of Funds: Direct and Indirect Finance6.2Roleof Financial Intermediation6.3InformationAsymmetriesand InformationCostsChapter7DepositoryInstitutions:Banks&BankManagement(4h)7.1Bank Balance Sheet7.2BankRiskChapter 8Financial Industry Structure...(2 h)8.1Banking Industry Structure in China8.2Banking Industry Structure in U.S8.3FutureofBan8.4 Non-depository InstitutionsChapter 9 Regulating the Financial System .....(4 h)9.1Recent International Evidence of Bank Crises9.2 Sources and Consequences of Runs, Panics, and Crises9.3Government SafetyNet9.4Regulation and Supervision of the Financial SystemPart IV Money Demand and Money Supply(8 h)Chapter 10 Money Growth, and Money Demand.... (4 h)10.1 Inflation and Money Growth10.2QuantityTheoryof Money andVelocityof Money10.3 Demand for Money10.4Targeting Money Growth in a Low-Inflation EnvironmentChapter11The Central Bank Balance Sheet and the Money Supply Process (4 h)11.1TheCentralBank'sBalanceSheet11.2Changingthe Sizeand Composition of theCentral BankBalanceSheet11.3TheDepositExpansionMultiplier11.4 The Monetary Base and the Money Supply11.5Arithmetic of Money Multiplier11.6 Limits on Central Bank's Control of Money SupplyPartVModernMonetaryPolicy(8 h)Chapter 12 Money Growth, Money Demand, and Modern Monetary Policy(8 h)12.1 The Federal Reserve's Monetary Policy Toolbox12.2 Linking Tools to Objectives:Making Choices12.3Aguide to Central Bank Interest Rates:Taylor Rule12.4 Interest RateTarget, Inflation Target and Inflation Target12.5Monetary PolicyTransmission Mechanism12.6 Challenges for Modern Monetary PolicymakersReview(2h)Problems resolved (2h)READINGREFERANCE(1)Mishkin, F.S."Understanding Financial Crises: ADeveloping Country Perspective,"(2) Mishkin, F.S.,"What Should Central Banks Do?" Federal Reserve Bank of St. Louis Review, vol. 82, #6 (November/December2000): 1-13

Chapter 5 Bonds, Bond Prices, and the Determination of Interest Rates (8 h) 5.1 Bonds (Credit Market Instruments) and Present Value 5.2 Bond Yields 5.3 Bond Market: Supply and Demand 5.4 Why Bonds Are Risky? 5.5 Risk Structure of Interest Rates 5.6 Term Structure of Interest Rates Part III Financial Institutions (14h) Chapter 6 The Economics of Financial Intermediation . (4 h) 6.1 Flow of Funds: Direct and Indirect Finance 6.2 Role of Financial Intermediation 6.3 Information Asymmetries and Information Costs Chapter 7 Depository Institutions: Banks & Bank Management (4 h) 7.1 Bank Balance Sheet 7.2 Bank Risk Chapter 8 Financial Industry Structure . (2 h) 8.1 Banking Industry Structure in China 8.2 Banking Industry Structure in U.S. 8.3 Future of Ban 8.4 Non-depository Institutions Chapter 9 Regulating the Financial System . (4 h) 9.1 Recent International Evidence of Bank Crises 9.2 Sources and Consequences of Runs, Panics, and Crises 9.3 Government Safety Net 9.4 Regulation and Supervision of the Financial System Part IV Money Demand and Money Supply (8 h) Chapter 10 Money Growth, and Money Demand. (4 h) 10.1 Inflation and Money Growth 10.2 Quantity Theory of Money and Velocity of Money 10.3 Demand for Money 10.4 Targeting Money Growth in a Low-Inflation Environment Chapter 11 The Central Bank Balance Sheet and the Money Supply Process (4 h) 11.1 The Central Bank’s Balance Sheet 11.2 Changing the Size and Composition of the Central Bank Balance Sheet 11.3 The Deposit Expansion Multiplier 11.4 The Monetary Base and the Money Supply 11.5 Arithmetic of Money Multiplier 11.6 Limits on Central Bank’s Control of Money Supply Part V Modern Monetary Policy (8 h) Chapter 12 Money Growth, Money Demand, and Modern Monetary Policy (8 h) 12.1 The Federal Reserve’s Monetary Policy Toolbox 12.2 Linking Tools to Objectives: Making Choices 12.3 A guide to Central Bank Interest Rates: Taylor Rule 12.4 Interest Rate Target, Inflation Target and Inflation Target 12.5 Monetary Policy Transmission Mechanism 12.6 Challenges for Modern Monetary Policymakers Review (2h) Problems resolved (2h) READING REFERANCE (1)Mishkin, F.S. "Understanding Financial Crises: A Developing Country Perspective," (2) Mishkin, F.S., "What Should Central Banks Do?" Federal Reserve Bank of St. Louis Review, vol. 82, #6 (November/December 2000): 1-13

(3) Mishkin, F.S.,"The Dangers of Exchange Rate Pegging in Emerging-Market Countries" International Finance, Vol 1, # 1 (October1998): 81-101.(4)Mishkin, F.S. and A. Posen,"Inflation Targeting: Lessons from Four Countries," Federal Reserve Bank of New York, EconomicPolicy Review, vol. 3,#3 (August 1997): 9-110.(5) Takatoshi Ito and Frederic S. Mishkin,"Two Decades of Japanese Money Policy and the Deflation Problem", Working Paper10878http:/www.nber.0rg/papers/w10878

(3) Mishkin, F.S., "The Dangers of Exchange Rate Pegging in Emerging-Market Countries" International Finance, Vol 1, # 1 (October 1998): 81-101. (4)Mishkin, F.S. and A. Posen, "Inflation Targeting: Lessons from Four Countries," Federal Reserve Bank of New York, Economic Policy Review, vol. 3, #3 (August 1997): 9-110. (5) Takatoshi Ito and Frederic S. Mishkin, "Two Decades of Japanese Money Policy and the Deflation Problem", Working Paper 10878 http://www.nber.org/papers/w10878