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Money and Banking

Assoc. Prof. Chris Ball

Economics Department


Office phone: +1 203 582 8745

Office Location: 4th Floor Rocky Top Student Center

QU Course Number: EC 341

Days: Tuesdays and Thursdays

Time:  3:30 - 4:45 PM

Location:  CCE 210

Office Hours: TBD and As Needed

QU Covid Message: play the linked video, at the beginning of EACH of your courses


Student Presentation Materials (Info and Schedules)

Section 1: Introduction and Review

  • Introduction and Overview of topics (Chap 1, 2 and 3)

  • Understanding modern central banking

    • Why do we care: Economics, Finance, Politics

    • 2 Aspects: (1) Macro Analysis (New Keynesian Models) and (2) Financial System Management

  • Basic Economic Review: Micro for Macro

    • Building supply and demand models (intuitive building blocks, inverse demand & supply, equilibrium and time paths)

      • NOTES: Math Review and Building S&D Model Basics (download)

    • What’s the point? Frameworks to analyze, understand and make predictions

    • Equilibrium: market clearing with slow price adjustment vs slow quantity adjustment

    • 2 Markets and the Law of One Price


Section 2: Interest Rates and Related Topics

Note: We covered bond markets, then skipped the money market, covered the terms structure of interest rates, then returned to close with the money market


Section 3: Asymmetric Information and Its Implications

Section 4: Monetary Basics and Central Banks

  • Review the basic money supply process, focus on T-Accounts (Chap 14)

  • The market for reserves (Chap 15)

    • CRAZY! FED Board of Governors 2020 Announcement that Required Reserves are ZERO.​  "In January 2019, the FOMC announced its intention to implement monetary policy in an ample reserves regime. Reserve requirements do not play a significant role in this operating framework. 
      In light of the shift to an ample reserves regime, the Board has reduced reserve requirement ratios to zero percent effective on March 26 (2020), the beginning of the next reserve maintenance period. This action eliminates reserve requirements for thousands of depository institutions and will help to support lending to households and businesses."

  • Conventional tools of monetary policy (Chap 15)

  • HAND WRITTEN NOTES Taylor Rules (Chap 16 and more)

  • Quick intro to Monetary Policy Issues in an Open Economy (own notes) (SKIP Chap 17 & 18)

TYPED NOTES: Review of AS-AD Basic

Section 5: New Keynesian AS-AD and Policy Topics

  • MV = Py in the short and long run (Chap 19)

  • Liquidity Preference theory (Chap 19)

  • 3 Building blocks of NK AS-AD

  1. Aggregate Demand and The IS Curve (Chap 20)

  2. Aggregate Demand and Monetary Policy (Chap 21)

  3. Aggregate Supply: Combining Phillips and Okun (Chap 22)

  • Analysis and Policy Challenges (Chap 22 and Chap 23)

  • Forward Guidance and Expectations (Chap 24)

  • Transmission Mechanisms (Chap 25)

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