LEARNING CONTRACT MONEY MARKETS AND CAPITAL MARKETS (3 SKS)

I.

COURSE DESCRIPTION
This course containing of the material about how the types financial institutions and financial instruments, and how and why the system of money markets and capital markets is changing. Money markets and capital markets also provides a descriptive explanation of how interest rates and security values are determined.

II.

COURSE BENEFIT
This course provides knowledge and understanding of money and capital markets , instrument, interest rates, fundamental analysis and technical analysis

III.

LEARNING GOALS a. General Instructional Goals: b. Spesific Intructional Goals:

IV.

LEARNING METHOD
The Learning process using the method of: 1. Tutorial / lecture Lecturer wills lecturing interactively about the principles of accounting treatment and report regarding to the chapters topic 2. Practical problem exercise a. Students independent tasks b. Quiz 3. Discussion a. Student should be active participate during the class session, by asking or answer question, giving opinions and comments, and should always responsive to the topic discussed b. Student discussing the result of independent task

V.

LEARNING TOPICS Sessio n

8/3/12

Topic
Introduction

Matrial
a. Introduction of the Unit: Syllabus b. Functions and roles of the financial system in the global economy a. The role of financial assets b. Characteristic of financial asset c. How financial assets are created? d. Financial assets and Financial system e. The value of money and other financial assets and inflation f. The importance of information of the financial markets g. The Evolution of Financial Transactions a. The Financial Markets in change b. Financial forces reshaping the money and capital markets c. The challenges and opportunities presented by recent trends d. The a. Money Markets Instruments b. Treasury Bills c. Certificates Instruments d. Commercial Paper e. Bankers acceptances f. The instrument Indonesian Money Markets a. Functions of the rate of interest rate b. The classical theory of interest rates c. The loanable funds theory of interest

Referen ce

Task/Assignme nt

15/3/1 2

Financial assets, money, financial transactions and financial institutions, and the financial information marketplace The Future of the financial system and the money and capital markets

Syllabus of MM and Cap Markets R (Ch. 1) R (Ch.2) Summary ch 1 and and 2 (R) (ch.3)

22/3/1 2

R (Ch.4)

Discussion Task : Instrument of Money Markets

29/3/1 2

The instrument of the money markets,

R (Ch.)

Report Task: Instruments of Mo

5/4/12

The determinants of interest rates: Competing ideas.

R (Ch. 5, Case 6)

Measuring and calculating interest rate and financial asset prices

d. The rational expectation of interest rate e. Units of measurements for interest rates and assets price f. Measures of the rates of return, or yield, on a loan, security, or other financial asset g. Interest rates charged by institutional lenders J (Ch. 19 Report Case 20) And C (Ch.9) a. Government involvement R (Ch. 10, in the money markets 11, 12) b. The roles played by banks in the money markets c. The roles of central banks in the economy and financial system d. The goals and channel of central banks Mid Test a. Using Puts and Calls b. Using Futures Contracts

12/4/1 2

Derivative Securities

19/4/1 2

The money market and central banks/the roles played by governments and securities dealers

26/4/1 2 sd 3/5/12 10/5/1 The 2 introduction of capital markets 17/5/1 The 2 instrument of capital markets 24/5/1 The 2 instrument of capital markets 31/5/1 Financial 2 Markets

a. What is Capital Markets Ch (Ch.1) b. Types of markets c. Function of capital markets a. Dividing the instrument C (Ch.8) capital markets b. Stocks, stocks market a. Bonds

Summary

Discussion Task: The Instrument CC Report Task: The Instrument CC

7/6/12

Analyzing and managing common

a. b. c. d. a.

The Primary Markets J (Ch.4, 5) The Secondary Markets Stock Markets Indexes Bonds Markets Analyzing some issue J (Ch.11) involving common stocks b. Building stock portfolio

Discussion Task: Case

Report Case

Task:

stock s 14/6/1 2

c. The passive and active strategy Fundamental a. PER analysis and technical b. Risk & return analysis P.V approach c. Quiz

21/6/1 2

Final Test

VI.

TASK/CASE 1.

VII.

ASSESTMENT
Assestment of the course learning is based on the accumulation of five components as follow:

No
1 2 3 4 5

Activities
Final Test Mid Test Quiz Interrative Lecturer Task/Assignment Discussion Participation and Report Total

Weight (persentase)
25 25 10 15 25 100

VIII.

REFERENCES
1. Money and Capital Markets: Financial Institution and Instruments in Global Market Place. Peter Rose and Milton Marquiz, 2006. Wisley Edition. (PRIMARY TEXTBOOK)/R 2. An introduction of Capital Markets: Products, Strategies, Participants. Andrew M Chisholm. 2002. First Edition. The Willey Finance series. (SUPLEMENTARY TEXT BOOK)/C 3. Money, Banking, and Financial Markets. Stephen G. Cecchetti. 2006. McGraw-Hill. (SUPLEMENTARY TEXTBOOK)/CH 4. The Economics of Money, Banking, and Financial Markets. Frederic S. Mishkin. 10th Edition, 2012, Pearson Education. (SUPLEMENTARY TEXTBOOK)/M

The case for competition in money markets

2011-NOV-23
Many people blame the market economy as a whole and, in particular, the greedy evil speculators and selfish financial markets for the problems we have been suffering in most developed economies since 2007. Following this rationale, governments are set to intervene much more in the financial markets with new tougher regulations. However, financial and money markets are far from being unregulated free market islands. On the contrary, the state has played a major role in the money market at least since early-modern history. Additionally, most analysts recognise that loose monetary policy, and thus excessive money growth for too long, has been critical to explain the underlying imbalances and the distortions created in the economy during the Great Moderation years. Consequently, in order to assign responsibilities for the current crisis, we should first identify the main actors in the money markets. In our 100% fiat monetary system, no commodity backs the value of the currency, nor the central bank has to redeem paper notes in a pre-set commodity (such as gold or silver). As C. Goodharts masterly put it in his (1988)s The Evolution of Central Banks (The MIT Press), the central bank leads and commands a club of commercial banks legally authorised to issue means of payments, the bank money, in the form of bank deposits in the currency of the central bank. Banks can expand their balance and thus create new means of payments because they only have to keep in their vaults a small fraction of their clients deposits (in the jargon, a fractional reserve banking system). In fact, this fraction is tiny: banks now are able to lend up to 95% or 98% or their deposits. The rest (yes, only a 2% to 5% of the deposits!) is kept by the commercial banks to meet customers demand for their deposited money. Most importantly, only fully-licensed banks are allowed to enter into the market of money creation, and thus competition is restricted and ultimately determined by the state. Finally, the issue of legal money (i.e., base money) is subject to state monopoly by law, as the central bank is the only one with the power to issue paper notes with legal tender force. Thus central banks form a legal monopoly in the issue of paper notes and an oligopoly in the supply of bank money, which is ultimately controlled by the central bank. These central banks are, in-turn, regulated by the state. Inside this peculiar system, the central bank acts as the bank of the rest of commercial and profitmaximising banks, to which it provides the following financial services: (1) Provision of the monetary (fully fiat) standard of the economy, (2) holding of banks reserves, (3) clearing facilities and (4) provision of regular (and also extraordinary) credit to the banking system. The central bank also monitors and supervises banks operations and balances, and receives the socalled seignoriage; which is the huge difference between the face value of the notes in circulation and their intrinsic value (which is virtually nil in the case of paper money). The commercial banks associated to the club also get a non negligible gain from their highly protected position in the market, as they share the gains of the seignoriage resulting from the issue of bank money;

which is the difference between the face value of the banks deposits and the cost of maintaining the (legal) reserve required by the central bank in cash. In sum, the central bank is the head of a sort of a legal cartel of commercial banks and all make an extraordinary profit from their privileged position in the money market. Furthermore, the proper running of this uncompetitive money market ultimately relies on the monetary policy decisions made by a single actor, the central bank; in the absence of a strict monetary rule that preserves the purchasing power of the currency, this frequently leads to cyclical over-expansion of money and hence inflation. Thus, the monetary system becomes fragile and unstable, as a succession of mistaken monetary policy decisions by the central bank (e.g., maintaining a lax credit policy for too long) may lead to a distortion in relative prices and finally to an inefficient allocation of resources with unwanted effects in the medium to the long term. This is why it is so important in our centralised monetary systems either to run a truly sound monetary policy such as the one conducted under the classical gold standard rule, or better, the introduction of true market forces and competition in the money market.
Tags: central banks, debt crisis, fiat currency, gold standard Author: Juan Castaeda

INILAH.COM, Jakarta - Saham Asia jatuh pada Jumat (19/11) karena meningkatnya kekhawatiran investor terhadap penularan utang Eropa, mendorong mereka untuk mencari aset yang lebih aman. Reuters melaporkan Polisi Yunani bentrok dengan pengunjuk rasa anti penghematan Italia yang mengumumkan reformasi penghematan dalam menanggapi krisis utang Eropa pada hari Kamis mendorong biaya pinjaman ke Perancis dan Spanyol naik tajam. FTSE CNBC Asia 100 Index, yang mengukur pasar di Asia, turun 1,3 persen. Nikkei aevrage Jepang jatuh, mengikuti saham AS dan Eropa akibat pasar global ingin melihat perkembangan terbaru di zona euro. Nikkei turun 1,2 persen menjadi 8.372,98, sedangkan Topix turun 1,1 persen menjadi 719,42. Nippon Steel, industri baja no.4 dunia, mengatakan pada hari Kamis telah setuju untuk mengakuisisi 20% saham di Al Ghurair Iron & Steel (AGIS), sebuah perusahaan baja di Uni Emirat Arab, sekitar 2 miliar yen untuk keran pertumbuhan permintaan baja di Timur Tengah. Sahamnya jatuh 1,7 persen. Suzuki Motor turun 1,7 persen meskipun perusahaan berencana untuk menghabiskan sekitar 60 miliar yen untuk membangun pabrik mobil penumpang baru di China, dua kali lipat kapasitas produksi pada tahun 2015 menjadi 500.000 kendaraan per tahun, Nikkei melaporkan. Skandal di Olympus membuat sahamnya turun 2,4 persen. Salah satu pemegang saham pengendali, Nippon Life Insurance, mengurangi sahamnya di perusahaan bermasalah ini pada hari Kamis, namun mengisyaratkan bahwa Nippon akan tetap menjadi investor dalam perusahaan.

Saham Seoul dibuka lebih rendah 2 persen setelah kejatuhan di Wall Street karena kekhawatiran investor meningkat terhadap penularan utang Eropa yang membingungkan, mendorong mereka untuk mencari aset yang lebih aman. Kejatuhan saham dipimpin oleh saham teknologi besar dan perbankan, dengan Samsung Electronics turun 1,5 persen dan KB Financial turun 2,2 persen. Indeks Harga Saham Gabungan Korea (KOSPI) turun 1,9 persen ke 1.841,03. Saham POSCO turun 2 persen setelah perusahaan baja No.3 dunia ini menandatangani MOU untuk penyediaan bahan magnesium dan materia ke Toyota Tsusho, menurut laporan media lokal. Saham Daewoo Shipbuilding jatuh 1,9 persen terkait berita Korea Selatan berencana untuk memilih penasihat bulan depan untuk penjualan 19,1 persen saham Daewoo Shipbuilding yang diselenggarakan oleh negara, yang dilaksanakan oleh Korea Asset Management Corp (KAMCO), sumber yang akrab dengan situasi itu mengatakan, itu merupakan upaya untuk mengembalikan dana publik yang disuntikkan setelah krisis keuangan Asia. Saham Australia jatuh 1,4 persen pada awal perdagangan, terluka oleh harga komoditas yang lemah dan ketakutan penularan meningkatnya utang yang mengguncang investor Eropa, mendorong mereka untuk membuang aset berisiko. Saham BHP Billiton dan Rio Tinto, keduanya jatuh lebih dari 2 persen. Indeks saham acuan S & P / ASX 200 turun 60,73 poin ke 4.197.50. Sedang Indeks saham acuan Selandia Baru NZX 50 tergelincir 0,5 persen menjadi 3.261,93.

INILAH.COM, Jakarta - Bursa saham Wall Street ditutup mixed pada perdagangan saham Rabu (14/3/2012). Investor memiliki sedikit sentimen untuk memperpanjang reli. Indeks Dow Jones naik 16,42 poin atau 0,12% ke level 13.194,10. Indeks S&P 500 turun 1,67 poin atau 0,12% ke level 1.394,28. Indeks Nasdaq naik 0,85 poin atau 0,03% ke level 3.040,73. Selain itu, indeks S&P mencapai intraday tinggi 1.399,42 level tertinggi sejak awal Juni 2008. Saham Procter and Gamble turun 0,1% menjadi ditutup pada US$67,85. Saham Chevron turun 0,5% menjadi US$110,69. Momentum kenaikan terus berlanjut di saham Apple Inc. Saham Apple naik 3,8% menjadi US$589,58 setelah komentar positif dari analis. Morgan Stanley dan Genuity Canaccord mengangkat target harga mereka terhadap saham Apple di atas US$700. Saham Apple naik sekitar 46% sepanjang 2012."Kami khawatir langkah di Apple telah menjadi sedikit terlalu banyak, terlalu cepat untuk kenaikan saham, sehingga terlalu optimis," ujar Channing Smith CoManager The Capital Advisors Growth Fund Capital Advisors seperti dikutip dari yahoofinance.com.

Saham JP Morgan juga terus melanjutkan kenaikan sebesar 1,3% pada Rabu (14/3/2012). Sepanjang tahun ini, saham JP Morgan telah naik 22%. Sementara itu, saham Citigroup turun 3,4% menjadi US$35,21. Hal itu dengan pernyataan The Fed tentang sebagian besar bank-bank Amerika Serikat terbesar lulus tes tahunan untuk kekuatan modal. Tetapi ada beberapa yang gagal termasuk Citigroup Inc. Saham NXP Semikonduktor naik 3,2% menjadi US$25,66 setelah Goldman Sachs menambahkan untuk keyakinan membeli dan menaikkan target harga menjadi US$30. Sementara itu, saham Zynga turun 0,2% menjadi US$13,35. Volume perdagangan saham sekitar 7,45 miliar saham di bursa saham New York, American Stock Exchange, dan Nasdaq di bawah rata-rata harian tahun lalu 7,84 miliar saham. Selain itu, bank sentral juga memperkirakan pertumbuhan moderat selama kuartal mendatang dengan tingkat pengangguran mengalami penurunan. [hid]

Wall Street Berakhir Mixed

stockexchange.com Oleh: Agustina Melani Pasar Modal - Kamis, 15 Maret 2012 | 06:46 WIB TERKAIT

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