SAMPLE SYLLABUS – SUBJECT TO CHANGE

ECON-UA 9231-L01
MONEY & BANKING

NYU London: Spring 2019

Instructor Information
● Stephen Hannah
● Office hours preferably by appointment

Course Information
● Tuesdays & Thursdays 14.45-16.00hrs (room 303)
● This course is not open to NYU Stern students.
● Intro to Macroeconomics (ECON-UA 1) and Intro to Microeconomics (ECON-UA
2), or Intro to Economic Analysis (ECON-UA 5) or equivalents.
● During the course, students will be expected to download and examine data sets
(primarily from official websites) and be familiar with elementary features of Excel

Course Overview and Goals

This course explores the functions, operations and efficacy of the global financial system,
highlighting the significant changes that have occurred in recent decades. Globalisation
and innovation have transformed the challenges facing both private institutions and public
regulators. Moreover, the Great Financial Crisis forced a wide-ranging debate on the
value of financial intermediation in the modern world and the need to overhaul the global
system of public oversight.
We translate the jargon of money and banking into plain language; explain the basic
principles behind key financial instruments such as repos, futures, swaps, CLOs and
other alphabet-soup derivatives; shine a light on “shadow” banking; outline the thinking
behind the current financial reform programme (Basel III); reveal how central banks
operate monetary policy and why they sometimes pursue different approaches in tackling
21st century challenges.
The teaching method will primarily involve lectures, general discussion, student
presentations and, occasionally, problem solving and reviews of homework/assessments.
The session-by-session guide provides an overview of the topics that are likely to be
covered although there may be minor additions/exclusions depending on the available
time and other circumstances. Lecture notes, exercises, spreadsheets and additional
material will usually be made available via the course website. Students are expected to
ask questions, provide feedback and participate fully in general discussion.
The lectures can only identify the main points to focus on and are not designed to provide
a comprehensive, self-contained coverage of everything the student needs to know to
fulfil course requirements. Partly, this reflects time constraints. More importantly, it
underlines that a substantial part of students’ learning will come through their own efforts:

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● reading outside the class; applying ideas to contemporary issues, whether or not
they have been identified within the formal syllabus
● careful and thorough note-taking; active discussion and participation in class
● timely and assiduous completion of assessments and (non-graded) exercises

Upon Completion of this Course, students will be able to:

● Understand the benefits of financial systems and their potential problems
● Recognise the forces that lead to financial crises and how they might be resolved
● Critically appraise policy initiatives undertaken since the Great Financial Crisis
● Track the historical evolution of traditional and “shadow” banking
● Comprehend key financial instruments and interpret asset prices and yields
● Pursue more advanced financial studies
● Compete effectively for Wall Street/Fed internships

Course Requirements
Grading of Assignments
The grade for this course will be determined according to these assessment components:
% of
Assignments/
Description of Assignment Final Due
Activities
Grade
A typed submission of 4 pages, using the
FRED (Federal Reserve Economic
Database) public resource, comprising
Data Project 15%
charts, tables and comments on money
and banking. Specific details are provided
on the course website.
A written 6-8 page assignment comprising
short numerical problems, definitions and
Problem Set #1 comments covering material in sessions 1- 25%
5. Circulated in session 6. Further
information on the course website.
A written 6-8 page assignment comprising
short numerical problems, definitions and
Problem Set #2 comments covering material in sessions 6- 25%
10. Circulated in session 9. Further
information on the course website.
In-class exam of 1½hrs duration. Students
will write brief essays for two out of the five
questions given. Further information is
Final Exam available on the course website including 35%
sample essays. The exam will primarily
cover material introduced in the last 4-5
weeks of the course.

Failure to submit or fulfill any required course component results in failure of the class

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Grades
Letter grades for the entire course will be assigned as follows:
Letter
Percent
Grade
A Example: 93.5% and higher
B Example: 82.5% - 87.49%
C Example: 72.5% - 77.49%
D Example: 62.5% - 67.49%
F Example: 59.99% and lower
Description
Consistently rigorous and cogent analysis that
clearly and directly answers the questions
assigned. The student displays evidence of
comprehensive knowledge of course material
and an ability to apply theory to policy options
and contemporary issues. Reading extends
beyond requirements and the student displays
historical and global perspective, independent
thought and originality of expression.
Generally accurate and clear reproduction of
key theories and ideas, employing, where
appropriate, correct diagrammatic techniques
and mathematical analysis. Answers to
questions are generally direct, relevant, well-
structured and clear. Knowledge and technical
competence appear broadly-based.
Some weaknesses revealed in the
understanding of core concepts, theories and
applications. Answers are competent but
sketchy in parts suggesting broad-brush rather
than in-depth knowledge of important topics.
Students exhibit limited analytical capabilities.
Several significant gaps in understanding are
evident although reasonable efforts appear to
have been made in keeping up with the
required reading and exercises.
Consistently poor work displaying little
knowledge of key concepts. Arguments lack
logic or clarity and reveal few efforts to keep
up with reading and exercises.

Course Materials
Required Textbooks & Materials
● Cecchetti, S. and Schoenholtz, K. (2016) Money, Banking and Financial Markets
(5th ed), McGraw-Hill, ISBN 978-125-9922-25-1
● Available from Amazon and Abebooks for less than £60 (as of winter 2018)
● Additional reading, sources, lecture notes, sample exams, exercises, etc are
available on the course website: access via NYU Classes or direct
● The textbook website https://www.moneyandbanking.com/ is also strongly
recommended.

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Resources
● Access your course materials: NYU Classes (nyu.edu/its/classes)
● Databases, journal articles, and more: Bobst Library (library.nyu.edu)
● NYUL Library Collection: Senate House Library
(catalogue.libraries.london.ac.uk)
● Assistance with strengthening your writing: NYU Writing Center
(nyu.mywconline.com)
● Obtain 24/7 technology assistance: IT Help Desk (nyu.edu/it/servicedesk)

Course Schedule
CS (blog) = required textbook (textbook authors’ blog); additional readings are provided
on the course website
Assignment
Session/Date Topic Reading
Due
Session 1 Financial System CS chs 1 and 3

Session 2 Money CS chs 2 and 10

Session 3 Balance Sheets CS ch 12 (pp298-310), ch 17

Session 4 Shadow Money CS chs 4 and 6 Data Project

Session 5 Uncertainty CS chs 5 and 7

Session 6 Liquidity & Capital CS blog, 3 Nov 2014

Session 7 Banking Returns CS ch 13 Problem Set #1

Session 8 Capital Risk CS chs 11 and 12 (pp310-322)

Session 9 Hedging CS ch 9

Securitisation &
Session 10 See course website
Shadow Banking
Mid-Term Break
Session 11 Central Banks CS chs 15 and 16 Problem Set #2

Interest Rate & FX

Session 12 CS chs 18, 19 and 23
Policy
Emergency Lending
Session 13 CS chs 18 and 23
& Asset Purchases
Regulation &
Session 14 CS chs 14 and 23
Reform

Final Assessment Final Exam Final Exam

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Co-Curricular Activities
• Suggested visits: British Museum Room 68 (The Citi Money Gallery) and: Bank of
England Museum

Classroom Etiquette
• Toilet breaks should be taken before or after class or during class breaks.
• Food & drink, including gum, are not to be consumed in class.
• Mobile phones on silent please and only to be used for emergencies.
• Please kindly dispose of rubbish in the bins provided.

NYUL Academic Policies

Attendance and Tardiness
• Key information on NYU London’s absence policy, how to report absences, and
what kinds of absences can be excused can be found on our website
(http://www.nyu.edu/london/academics/attendance-policy.html)

Assignments, Plagiarism, and Late Work

• You can find details on these topics and more on this section of our NYUL website
(https://www.nyu.edu/london/academics/academic-policies.html) and on the
Policies and Procedures section of the NYU website for students studying away at
global sites (https://www.nyu.edu/academics/studying-abroad/upperclassmen-
semester-academic-year-study-away/academic-resources/policies-and-
procedures.html).

Classroom Conduct
Academic communities exist to facilitate the process of acquiring and exchanging
knowledge and understanding, to enhance the personal and intellectual development of
its members, and to advance the interests of society. Essential to this mission is that all
members of the University Community are safe and free to engage in a civil process of
teaching and learning through their experiences both inside and outside the classroom.
Accordingly, no student should engage in any form of behaviour that interferes with the
academic or educational process, compromises the personal safety or well-being of
another, or disrupts the administration of University programs or services. Please refer to
the NYU Disruptive Student Behavior Policy for examples of disruptive behavior and
guidelines for response and enforcement.

Disability Disclosure Statement

Academic accommodations are available for students with disabilities. Please contact the
Moses Center for Students with Disabilities (212-998-4980 or mosescsd@nyu.edu) for
further information. Students who are requesting academic accommodations are advised
to reach out to the Moses Center as early as possible in the semester for assistance.

Instructor Bio
https://moneybanknyul.sphteaching.com/about/

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