180.261 -- Monetary Analysis -- Fall 2013

This course will survey topics related to money, banking, and financial markets. There will be two lectures per week, and usually two review sessions led by TAs (Tues and Wed at 7:00). There is no class on October 24.

There will be weekly problem sets (15% of course grade), usually due on Thursdays. Each student can skip one problem set without a penalty. There will be midterms in class on October 3 and November 14 (25% each), and a take-home final exam due at the end of exam period (35%).

Students can receive small amounts of extra credit in two ways:

- By making comments or asking questions during lectures. Double credit for comments that disagree with the instructor.

- By joining a group of students who make presentations outside of class on topics related to the course. Interested students should consult the instructor about this option and sign up by September 26.

The text is Money, Banking, and Financial Markets (2nd ed.), by the instructor. Additional readings may be assigned occasionally. The course website at www.econ.jhu.edu will contain administrative information about the course.

We will attempt to cover textbook chapters 1-5 and 7-13, Section 14.4, and chapter 18. Lectures will present topics in the same order as the text. On average, about two lectures will be devoted to a chapter.


Announcements
9/19: Note the change in the dates of midterm exams (moved from Tuesdays to Thursdays)
9/24: Question 12 from Chapter 4 was taken off Problem Set #3
9/26: Information about Midterm 1 and last year's exam is posted below
10/1: Clarification regarding Midterm 1: Sections 4.1, 4.2, and 4.3 are not on the exam. The rest of Chapter 4 is on the exam.
10/8: No review session or problem set this week
10/10: No class on Tuesday next week (10/15)
10/10: Midterm I distribution of scores and solutions posted below. If you haven't picked up your exam yet, you can pick it up at the end of the lecture on Thursday next week.
10/10: Problem Set #4 posted below. Review sessions will be on Tuesday and Wednesday next week, as usual (despite the fact that teaching on Tuesday follows Monday schedule)
10/17: No class on Thursday (10/24)
10/22: Problem Set #5 posted, due on Thursday 10/31
10/31: Problem Set #6 posted, due on Thursday 11/7
10/31: New readings posted below
11/7: Information about Midterm 2 and last year's exam are posted below
11/21: Solution and grade distribution for Midterm 2 posted below
12/3: Problem Set #7 posted
12/6: *** Final exam posted ***


Contact Information

Instructor: Laurence Ball
Email: lball@jhu.edu
Office hours: by appointment, Mergenthaler 431


TA

Jong Jae Lee
Email: jlee427@jhu.edu
Office hours: Tuesday, 4:00pm-5:00pm, Mergenthaler 466


Daniel Garcia Molina
Email: dgarcia9@jhu.edu
Office hours: Wednesday, 10:00am-11:00am, Greenhouse 124 Temporary change: Mergenthaler 466


Lucia Tiererova
Email: lucia@jhu.edu
Office hours: Tuesday, 11:00am-12:00pm, Greenhouse 123 Temporary change: Mergenthaler 466


Course Times and Locations

Lectures: Tuesday, Thursday, 9:00-10:15am in Merg 111
Review sessions: Tuesday, Wednesday, 7:00-8:00pm in Krieger 205


Problem Sets

Problem Set #1: Chapter 1 #3,4,6,7 due in class on Thursday 9/12
Problem Set #2: Chapter 2 #1,5,9 due in class on Thursday 9/19
Problem Set #3: Chapter 3 #2,4,5,6,7,8 due in class on Thursday 9/26 (Question 12 is not longer part of the homework)
Problem Set #4: Chapter 5 #5,6,7,8,9,10,11,12; all of the problems are equally important for your learning and preparing for the exams but you only have to submit problems #6,8,10,12 for grading - due in class on Thursday 10/17
Problem Set #5: Chapter 7 #1,4,8,9,12 due in class on Thursday 10/31
Problem Set #6: Chapter 8 #1,3,4,5,7 due in class on Thursday 11/7
Problem Set #7: Chapter 10 #6,8 and Chapter 18 #1,2,5 can be submitted in class on Thursday or over the weekend by sliding your homework under Prof. Ball's door


Exams

Midterm 1:

  • Date and time: October 3, 9:00-10:15am
  • Location (-2 points if you show up in the wrong classroom):
    • Students with last name starting with A - L: Mergenthaler 111
    • Students with last name starting with M - Z: Gilman 50
  • Arrive by 8:55am at your assigned classroom and make sure to leave one empty seat between you and your classmates. No electronic devices, calculators, books or notes will be allowed during the exam.
  • Exam content: The exam covers everything from lectures, problem sets, practice problems, and textbook (Chapters 1,2,3, and 4, except sections 4.1, 4.2, and 4.3, which are not on the exam, the rest of Chapter 4 is on the exam)
  • Review sessions: Usual time and place (Tue, Wed 7pm in Krieger 205)
  • Practice problems: Chapter 4 #6,7,8,9,10 (these are for your practice, you don't need to turn them in)
  • Practice exam from last year: Questions Solutions
  • Distribution of scores: median - 75 points (out of 100)
    90-100:10
    80-89:21
    70-79:37
    60-69:18
    50-59:8
    40-49:7
    30-39:1
  • Solution: Midterm I Solution

Midterm 2:

  • Date and time: November 14, 9:00-10:15am
  • Location (-2 points if you show up in the wrong classroom):
    • Students with last name starting with A - L: Mergenthaler 111
    • Students with last name starting with M - Z: Shaffer 3
  • Arrive by 8:55am at your assigned classroom and make sure to leave one empty seat between you and your classmates. No electronic devices, calculators, books or notes will be allowed during the exam.
  • Exam content: The exam covers lectures, problem sets, practice problems, and textbook (Chapters 5,7,8, and 9)
  • Review sessions: Usual time and place (Tue, Wed 7pm in Krieger 205)
  • Practice problems: Chapter 9 #1,3,4,7; for problem #1, you only need to do parts a,b,c,d, and skip interest sensitivity, note that table 9.4A is the same as the table on p. 260. These problems are for your practice, you don't need to turn them in.
  • Practice exam from last year: Questions Solutions
  • Distribution of scores: median - 67 points (out of 100)
    90-100:3
    80-89:16
    70-79:23
    60-69:29
    50-59:24
    40-49:5
  • Solution: Midterm II Solution

*** Final exam: ***

  • Download exam here: FINAL EXAM
  • Take-home exam, due December 20 at 5:00pm in the Econ TA room (Merg 466):
    • +1 point for handing it in 24 hours early (by 12/19 at 5pm)
    • +2 points for 48 hours early (by 12/18 at 5pm)
    • There will be a marked box in the room in which you can submit your exam
    • You are encouraged to type your answers to essay questions on a computer, leave space for comments
  • Open book but you are not allowed to discuss the exam with other students who are currently taking the class or who took the class in the past
  • Review session with Prof. Ball on 12/11 at 7pm, location TBD


Readings

Lure of Great Wealth Affects Career Choices, by Louis Uchitelle, New York Times, November 27, 2006

A Father of High-Speed Trading Thinks We Should Slow Down, Episode 396 on NPR Planet Money

IMF's Greek Euro Exit Analysis, by Matthew Dalton, WSJ Blogs, January 31, 2013

Economists and Financial Analysts for a U.S. Financial Transaction Tax

A Giant Stone Coin at the Bottom of the Sea, NPR Planet Money

Bitcoin, NPR Planet Money

How to Kill a Currency, NPR Planet Money

The Beanie Babies Bubble

Interpreting the Fed, guest post on Greg Mankiw's blog

Controlling Interest, The Economist, September 21, 2013

Three's Company: Wall Street, Capitol Hill, and K Street, by Deniz Igan and Prachi Mishra, IMF Working Paper

$9.2 billion, maybe, for whatever, The Economist, October 11, 2013

House, Set to Vote on 2 Bills, Is Seen as an Ally of Wall St., by Eric Lipton and Ben Protess, New York Times, October 28, 2013

CDOs-Squared Demystified, Nomura Fixed Income Research

SAC Capital Agrees to Plead Guilty to Insider Trading, by Peter Lattman and Ben Protess, New York Times, November 4, 2013


Johns Hopkins University Department of Economics Johns Hopkins University Department of Economics