ECON 210: Financial Markets

Summer 2007

Joseph P. Joyce
Room 413 PNE
Department of Economics
Wellesley College
Tel: 781-283-2160
E-mail:

This course examines domestic and international financial markets and institutions. The texts for the course are:

Mishkin and Eakins, Financial Markets and Institutions (5th ed.)
Morris and Morris, Standard & Poor's Guide to Understanding Money and Investing

Additional readings are available at the reserve room of Clapp Library or on electronic reserve. Short readings will also be distributed in class.

Office hours: Thursday 11 - 12 and by appointment.

The final grade will be based on the results of two exams (35% each), a paper (30%).

READINGS

I. Introduction

Overview (6/18)
Mishkin and Eakins, Ch. 2

Present Value (6/18)
Mishkin and Eakins, Ch. 3: p. 42-44

II. Debt

Bond Markets (6/20)
Morris and Morris, p. 68-93
Mishkin and Eakins, Ch. 10: p. 245-258, 265-268

Money Market Instruments (6/20)
Mishkin and Eakins, Ch. 9

Interest Rates (6/21)
Mishkin and Eakins, Ch. 3: p. 52-55; Ch. 5

III. Equity

Stock Markets (6/21)
Morris and Morris, p. 32-67, p. 94-105
Mishkin and Eakins, Chs. 11, 23

Efficiency (6/25)
Mishkin and Eakins, Ch. 6
The Economist, "Mug's Game," 9/27/02

CAPM (6/25)
The Economist, "Taking Stock," 6/5/03

Stock Market and Economy (6/27)
Pearce, "Stock Prices and the Economy," FRB of KC Economic Review, 11/83

Review (6/27)

FIRST EXAM (June 28)

IV. Derivatives

Futures (6/28)
Morris and Morris, p. 158-173
Mishkin and Eakins, Ch. 25: p. 639-650, 652-655

BREAK (July 2, 4)

V. Financial Intermediaries

Commercial Banks (7/5)
Mishkin and Eakins, Ch. 17, p. 425-436, 623-625

Banks and Thrifts (7/5), The Economist, "The Trouble with Banks" 5/1/03
Mishkin and Eakins, Ch, 18: p. 451-454, 466-479; Ch. 19

PAPER DUE (July 6)

VI. Money

Money Creation (7/9)
Morris and Morris, p. 26-29
Mishkin, Economics of Money, Banking and Financial Markets, (7th ed.) Ch. 15: p. 365-371

Money Multiplier (7/9)
Mishkin, Economics of Money, Banking and Financial Markets, (7th ed.) Ch. 15: p. 358-359, Ch. 16

Federal Reserve (7/11)
Mishkin and Eakins, Chs. 7, 8

Review (7/12)

SECOND EXAM (July 12)