This class covers the impact of central banks and regulation on money and credit as they move through the global financial system, highlighting the fragilities revealed in the recent financial crisis. Emphasis will be placed on the policy tools used by central banks to influence output, employment, and inflation/deflation as well as the scope and effectiveness of government regulation of banking and financial markets. We will focus on the Global Financial Crisis of a decade ago as well as the current disruption due to COVID-19 to illustrate the interconnections across countries and markets and evaluate whether the monetary and regulatory policy responses have helped to make the global system more or less stable. The goal is to provide an economic framework to help students understand the sources of the fragilities and better prepare their businesses for the current and future economic and financial turbulence.

Prereq: Micro (33001, 33002, or 33101) strict. Macro (33040) recommended. Cannot enroll if taken 33401 previously.

Class Meets 8/15, 8/16, 8/17, 8/19, 8/20

Micro (33001, 33002, or 33101) strict. Macro (33040) recommended. Cannot enroll if taken 33401 previously.

You will have a written assignment due each class. The course grade will be based on five homework assignments (8 percent each), class participation (10 percent), and an exam (50 percent) that will be given in the first half of September. The readings and assignments will be posted on Canvas. You are encouraged to discuss the assignments with other students, but you must write up each individually and in your own words. Note that you have a homework assignment due at the start of the first day of class. Please submit it through Canvas before class. If you have trouble with Canvas, you can bring a print-out to turn in at the beginning of class.