- Introduction: role of money and the payments system.
- Financial instruments and financial markets.
- Yield differentials and the impact of inflation and taxation on interest rates.
- The term structure of interest rates.
- The theory of financial intermediation.
- Management of interest rate risks and the concept of duration.
- Public policy issues in the financial system, Bank Act revision and re-regulation of the financial markets.
- Deposit expansion by chartered banks and near banks and the determinants of the money demand and money supply process.
- Bank of Canada and the conduct of monetary policy under different policy regimes.
Lectures and seminars which will be devoted to discussions of the major issues in monetary economics and the recent developments in the financial markets.
|Term Exams||30% - 70%|
|Assignments||0% - 20%|
|Final Exam||30% - 40%|
|Class Participation||0% - 10%|
THERE WILL BE A MINIMUM OF THREE (3) EVALUATIONS.
Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.
To introduce students to the elements of monetary economics and the role of deposit-taking institutions in the process of financial intermediation in the payments system. At the end of the course, the student will be able to:
- demonstrate an understanding of the functions of money, and other basic financial instruments, the credit creation process and competing theories of financial intermediation.
- demonstrate an understanding of the various theories of the term structure of interest rates, the real rate of interest and the impact of inflation and taxation on the pattern of interest rates.
- demonstrate an understanding of the concepts of duration and management of interest rate risks by financial institutions.
- explain the rationale for the revisions of the Bank Act, and the re-regulation of the financial markets -- including the role of deposit insurance.
- analyse the determinants of the money demand and money supply processes in the context of the conduct of monetary policy by the Bank of Canada.
Textbooks and Materials to be Purchased by Students
The main text is to be chosen from the following, as determined by the instructor:
- Binhammer, H.H. Money, Banking & The Canadian Financial System, Latest Ed. Nelson Canada.
- Mishkin, F. and A. Serletis. The Economics of Money, Banking, and Financial Markets, Canadian Ed. Addison Wesley Longman.
- Siklos, P. Money, Banking and Financial Institutions, Latest Ed. McGraw-Hill Ryerson.
Supplementary materials may be chosen from the following, as determined by the instructor:
- Bank of Canada Review (various issues).
- Various published or unpublished articles pertaining to the course content.
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester / year of the course, consider the previous version as the applicable version.
|Institution||Transfer Details||Effective Dates|
|Athabasca University (AU)||AU ECON 385 (3)||2016/09/01 to -|
|Capilano University (CAPU)||CAPU ECON 210 (3)||2004/09/01 to -|
|Coquitlam College (COQU)||COQU ECON 210 (3)||2004/09/01 to -|
|Langara College (LANG)||LANG ECON 2210 (3)||2004/09/01 to -|
|Simon Fraser University (SFU)||SFU ECON 210 (3)||2004/09/01 to 2014/12/31|
|Simon Fraser University (SFU)||SFU ECON 2XX (3)||2015/01/01 to -|
|Thompson Rivers University (TRU)||TRU ECON 2XXX (3)||2011/09/01 to -|
|Trinity Western University (TWU)||TWU ECON 1XX (3)||2017/01/01 to -|
|Trinity Western University (TWU)||TWU ECON 304 (3)||2004/09/01 to 2016/12/31|
|University of British Columbia - Okanagan (UBCO)||UBCO ECON 2nd (3)||2004/09/01 to -|
|University of British Columbia - Vancouver (UBCV)||UBCV ECON 2nd (3)||2004/09/01 to -|
|University of Northern BC (UNBC)||UNBC COMM 2XX (3)||2004/09/01 to -|
|University of the Fraser Valley (UFV)||UFV ECON 2XX (3)||2004/09/01 to -|
|University of Victoria (UVIC)||UVIC ECON 305 (1.5)||2013/09/01 to -|
|University of Victoria (UVIC)||UVIC ECON 2XX (1.5)||2004/09/01 to 2013/08/31|