Course Outline Economics 121 Economics of Money and Banking First Semester 2012-2013 Instructor: Gay Defiesta, PhD

(email: gay.defiesta@gmail.com)

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Introduction The importance of studying the economics of money, banking and financial institutions Selected Financial Statistics of the Philippines (assignment) The Financial System Structure and Function Instruments Intermediaries International finance Regulation Money Definition, Characteristics, and Functions Demand and Supply Money and the Economy Financial Markets Present value Interest rates: Behavior, risk and term structure The stock market, rational expectations and efficient markets Market failure and the financial system Banking History of banking in the Philippines (assignment) Structure and competition Money creation Central banking and Monetary policy Monetary Policy: Tools, Goals and Strategies Foreign Exchange Market and the International Financial System Nature of exchange rate Changes in exchange rates International finance

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References: 1. Understanding the Economics of Money, Banking and Financial Institutions by Frederic Mishkin 2. Selected articles

Requirements: 3 Long exams 75% Assignments - 10% Quizzes - 10% Attendance - 5% Total - 100%