Economics 330 - Money & Banking

Fall 2021

Sep 9, 2021

Welcome to Econ 330 for Fall 2021. Throughout the semester, I’ll post discussion handouts and other updates as necessary.

Updates

9 September: No discussion sections this week (10 September). First discussions will be Friday, 17 September. Homework 1 (Ch. 2 of Mishkin, Qs 1, 3, 6, 9, 10, 12, 15, 17, and 22) is due at the start of section next Friday (17 Sept).

28 September: Homework can now be submitted via Canvas in case you can’t make it to section (submitting in section is still recommended**. Please still handwrite your answers. Canvas submissions will close at 3PM on Fridays.

I’ve also uploaded short handwritten notes on how to use the geometric series equations to simplify some of the present-value/yield-to-maturity equations, the difference between yield to maturity and rate of return, and how interest rates work when payments occur more frequently than once a year.

5 October: I’ve added a short note on why under expectations theory the long-term interest rates would be equal to the (arithmetic) average of the expected short-term rates over the holding period. Midterm 1 is coming up fast, so make sure to review the readings, homework solutions, and lecture notes.

14 October: Raw exam scores are now on Canvas. Grades assignments for the exam are:

  • A: 86-100
  • AB: 78-85
  • B: 72-77
  • BC: 62-71
  • C: 56-61
  • D: 46-55
  • F: 0-45

21 October: My Wednesday office hours going forward will be in the afternoon from 2 to 3PM.

1 November Because I wasn’t able to cover duration analysis in discussions, I’ve uploaded a new handwritten note covering both gap and duration analysis. In short, you can use gap analysis to estimate changes in profits (flows) from interest rate changes, while you can use duration analysis to estimate changes in values (stock).

18 November Second midterm scores are on Canvas. The curve is as follows:

  • A: 92-100
  • AB: 86-91
  • BC: 74-77
  • C: 64-73
  • D: 51-63
  • F: 0-50
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Gary Baker

I’m an economic theory grad student at UW–Madison. I am currently (Fall 2021) on the job market.