Economics 423: Financial Markets Summer Session II 2009 Instructor: Lauren Raymer Heller Office: Gardner Hall, Room 406 Email: [email protected] AIM: CarolinaEconGrad Office Mailbox Location: Economics Office, 107 Gardner Hall Course Webpage: http://www.unc.edu/courses/2009ss2/econ/423/001/ Office Hours: Mondays, Wednesdays, and Fridays, 8:30-9:30am and by appointment Course Information This course conducts an examination of financial institutions and markets, their role in economic conditions, and the use of macroeconomic policies in affecting those conditions. Specifically, the course focuses on the pricing and distribution of financial securities within a market economy, and the role of private and government institutions in financial markets. This course is designed for economics majors, and as such, there is a significantly greater emphasis on quantitative techniques than in 300-level courses, and the course tends to be somewhat more rigorous than the classes planned for non-majors. Class Meeting Times and Location: Gardner Hall, Room 308 MTWThF, 9:45-11:15am Credit Hours: 3 Prerequisites: Econ 101 and 420 or equivalent. Ideally, students will have achieved a “B” or better in both courses. Required Text: Financial Markets and Institutions, 6th edition by Frederic S. Mishkin and Stanley G. Eakins. ISBN: 0321374215. http://www.aw-bc.com/mishkin_eakins/. Use of the 5th edition, softcover, or international versions of this text is perfectly acceptable, but students are responsible for determining the equivalent chapters and page numbers for assigned readings if they choose this option. Consistent reading of the text is a key determinant of success in this course. Other Required Materials: All students in this class will be expected to obtain a 6-week subscription to the Wall Street Journal for use throughout the course. We will be utilizing articles in the journal frequently, both through class examples and supplementary reading. This subscription is available at a considerable discount ($11.95) for students. Either fill out your delivery information on the form provided in class, or take the following steps to subscribe online:1. Go to this link: http://subscribe.wsj.com/6weeks 2. On the form, you will be asked for the first three digits of the university's zip code - type in "275" 3. On the form you will be asked for your "Referring Professor", check 'Other' and then write in "Lauren Heller" 4. Subscriptions will take a few days for processing. Due to the condensed nature of this course, it is important that you obtain one promptly. Honor Code: As a matter of ethics and in consideration of all students, the honor code will be taken extremely seriously in this course. For clarification on what is expected from you as a member of the university community, see: http://honor.unc.edu/honor/index.html Grading Your grade for this course will be determined through frequent quizzes and problem sets, a midterm and final exam, and participation in class discussion. Your final grade will be weighted as follows: Problem Sets / Homework Quizzes 30% Class Participation 10% Midterm 25% Final 35% Exam Policies: There will be no make-ups given for the midterm exam under any circumstances. If there are extenuating circumstances that cause you to miss the midterm and valid documentation is provided, the final exam will be reweighted to count for both the midterm and final exam grades. No make-ups for the final exam are permitted unless formal permission is granted by the Dean of Arts & Sciences. - Only a basic calculator is permitted in all exams. Calculators of this type should not have any memory storage capability, and should not be able to perform any calculations that are more complex than taking a square root. Please see me before exam time if there are any questions regarding this policy. Grading Policies: NO late assignments will be accepted for a grade, but may be submitted for comments and feedback. The lowest homework quiz score will be dropped from your final grade calculations – choose wisely. Unless otherwise stated, all assignments and exams are to be a student's own work, completed individually.Class Participation Guidelines: In order to facilitate active learning and to stimulate critical thinking about economic concepts, participation in class discussions is vigorously encouraged. The following rubric will be used when determining your final class participation grade: Percentage/Grade Quantity and Quality 9-10%, A Participates frequently each class session (In a manner that relates to other points discussed and encourages further conversation) and Contributions are relevant to the discussion and include specific citations of assigned readings or problems, as well as specific examples from one’s own ideas or outside sources. 7-8%, B Participates occasionally in each class session (in a manner relating to other points and encouraging further conversation) and Contributions are relevant but make only vague references to assigned materials without specific examples 5-7%, C Seldom participates or Contributions are relevant to the discussion but contain no references to assignments and no specific examples 3-5%, D Seldom participates or Contributions are not relevant to the discussion and contain no specific examples to make key points 0-3%, F Never or rarely participates This scoring rubric was adapted from one created by Florida Gulf Coast University, http://ruby.fgcu.edu/courses/bhalvers/IDS3920/particru.htm Course Readings: Reading assignments will be given prior to the session in which each topic is discussed. Reading the text is extremely important, and will be helpful in completing homework assignments, preparing for exams, and participating in class discussion. Additional readings may also be assigned that are pertinent to topics covered in class. Cell Phone and Internet Etiquette: Please turn off all cell phones and audible pagers during class. Off means off—please do not text, check emails, surf the internet, etc. Under NO circumstances are cell phone calculators permitted on exams.Course Calendar Important Dates: - Thursday, June 18th - First day of class - Wednesday, June 24th – Last day to drop a course through the registrar - Friday, July 3rd - No Class (University Holiday) - Tuesday, July 21st – Last day of class - Thursday, July 23rd – Final Exam, 8am Topics Chapter