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This course offers an introduction to a "money view" of economic activity for modern times, building on the intellectual traditions of British central banking and American institutionalism. Part One explores the economics of payment systems and money markets. Part Two explores connections with foreign exchange and capital markets. The present session is Part Two. My recent book The New Lombard Street: How the Fed became the Dealer of Last Resort can be read as an example of how the money view helps us understand the evolution of the role of central banking from the origin of the Fed to the most recent crisis. (The link takes you to a Princeton Press page where you can view pdf of the book for free, and order a discount price copy.)

The course is six weeks long, with a final exam in the seventh week.  Each week there are two lectures, one reading with associated guide questions, and one quiz that assesses your understanding of the material for that week (except that the first week reviews Part One and has no quiz).  Readings and lecture notes for the entire course are visible throughout the course, but the video lectures are released one week at a time in order to encourage you to proceed at the same pace as the rest of the class.  The idea is to facilitate discussion.

Week 1. Introduction and Review of Part One (Oct 13-19)
   Lec 2:  The Natural Hierarchy of Money 
   Lec Review
   No Reading
   No Homework

Week 2. International Money and Banking (Oct 20-26)
   Lec 13:  Chartalism, Metallism and Key Currencies
   Lec 14:  Money and the State, International
   Reading: Mundell
   Homework, due Oct 26:  Quiz 1

Week 3: International Money and Banking, continued (Oct 27-Nov 2)
   Lec 15: Banks and Global Liquidity
   Lec 16: Foreign Exchange
   Reading: McCauley
   Homework, due Nov 3:  Quiz 2

Week 4: Banking as Advance Clearing (Nov 3-9)
   Lec 17:  Direct and Indirect Finance
   Lec 18:  Forwards and Futures
   Reading: Gurley and Shaw
   Homework, due Nov 10:  Quiz 3

Week 5: Banking as Advance Clearing, continued (Nov 10-16)
   Lec 19:  Interest Rate Swaps
   Lec 20:  Credit Derivatives
   Reading: FOMC
   Homework, due Nov 17:  Quiz 4

Week 6: Banking and the Real World (Nov 17-23)
   Lec 21: Shadow Banking, Central Banking, and Global Finance
   Lec 22: Touching the Elephant:  Three Views
   Reading: Shadow Banking
   Homework, due Nov 24:  Quiz 5

Week 7: Review and Exam (Nov 24-30)
   Final Exam, due Dec 1