Published Apr 26, 2024
This course offers an overview of the functioning of the financial system both in Canada and abroad. It includes discussions of money and inflation, financial assets, and financial institutions and intermediaries.
Prereq: ECON 101 or ECON 100/COMM 103; ECON 102
| Among others, |
| • Explain what money is, its forms and functions |
| • Discuss the meaning and behavior of interest rates |
| • Explain the risk and term structure of interest rates |
| • Explain the theory of rational expectations and the efficient market hypothesis |
| • Discuss features and functions of the Bank of Canada |
| • Explain the money supply process |
| • Explain the quantity theory of money, inflation, and the demand for money |
| • Discuss aggregate demand and aggregate supply |
| • Discuss the objectives, tools, and role of monetary policy in the economy |
Outline of Topics and Chapters
1. Overview of the Financial System (Chapters 1 and 2)
2. Money and Interest Rates (Chapters 3, 4, 5, and 6)
3. Stock Market, Expectations, and Efficient Market Hypothesis (Chapter 7)
4. Central Banks (Chapter 14)
5. Money Supply Process (Chapter 15)
6. Tools of Monetary Policy (Chapter 16)
7. Monetary Theory, Aggregate Demand, and Aggregate Supply (Chapters 20, 21, 22, and 23)
8. Monetary Policy Theory (Chapter 24)
| Title / Name | Notes / Comments | Required |
|---|---|---|
| Mishkin, Frederic S. and Apostolos Serletis (2023). The Economics of Money, Banking, and Financial Markets, 8th Canadian Edition. Pearson Canada. | Yes |
• Lecture slides and/or additional course material will be posted on LEARN. Note that lecture slides are a complement to, not a substitute for, the textbook.
• The LEARN site is down occasionally. You must save the course materials to your computer as soon as they are posted.
• Check the Announcements widget/page on LEARN daily.
| Component | Value |
|---|---|
| Midterm exam 1 (June 6th – Thursday, 11:30am - 12:50pm) | 20% |
| Midterm exam 2 (July 4th – Thursday, 11:30am - 12:50pm) | 20% |
| Final exam (TBA; Scheduled by the Registrar’s office) | 60% |
• The location for the midterm exams will be announced in class and posted on LEARN.
• The date, time and location for the final exam will be set by the Registrar’s Office. The final exam schedule will be posted online, announced in class, and posted on LEARN.
• Only the Registrar’s Office can issue final grades. Hence, marks for the final exam will not be posted on LEARN.
• It is the responsibility of students to ensure that they write exams in the location, date, and time assigned to their section. Students writing exams in the wrong section will be assessed a 20% penalty on the exam grade. There will be no accommodation for possible differences in exam material or content.
Missing a Midterm Exam Due to Illness
• Missing a midterm exam will automatically result in a grade of zero for that exam. If you miss a midterm due to illness and the illness can be documented with a University of Waterloo Verification of Illness Form (VIF) (or has submitted a self-declared absence on Quest), with approval you may transfer the weight of the missed midterm to the final exam. Submit the original copy of your VIF to the instructor within 10 calendar days.
• No make-up midterm exams will be offered.
Missing the Final Exam Due to Illness
• All deferred final exam requests for economics courses are administered/regulated by the Economics Department Undergraduate Office. Please carefully read the Economics Department policy on deferred final exam at https://uwaterloo.ca/economics/undergraduate/resources-and-policies/deferred-final-exam-policy.
• No deferred final exam will be provided for students who missed all the exams (including the final exam) in this course.
Electronic Device Policy
• Laptop computers and/or other electronic devices (such as smartphones and tablets) may only be used to view lecture materials.
• Photographic devices, audio and/or video recording devices are not permitted in class due to copyright and privacy issues.
Attendance Policy
Students are expected to attend all lectures/class meetings. Although attendance is not a graded component of this course, it is critical for understanding the course material. Students are responsible for all material covered in the scheduled lecture periods whether they choose to attend lectures or not.
• I do not lend my lecture notes to students for any reason.
• To maintain a conducive learning environment in the classroom, students are expected to show the highest level of courtesy and professional behavior. Please be punctual, turn off all audible ringers on all devices during class, be attentive and non-disruptive during class.
• As a courtesy to the custodial staff, please dispose of your garbage when you leave the classroom.
No assignment screening will be used in this course.
All deferred Final Exam requests for economics courses are administered by the Economics Undergraduate Office. Please consult the Deferred Exam Policy at
https://uwaterloo.ca/economics/undergraduate/resources-and-policies/deferred-final-exam-policy.
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On campus supports
All of us need a support system. The faculty and staff in Arts encourage students to seek out mental health and counselling if they are needed. For counselling (individual or group) reach out to Campus Wellness and Counselling Services. Counselling Services strives to provide a secure, supportive environment for students of all orientations and backgrounds. They offer confidential counselling for a variety of areas including anxiety, stress management, depression, grief, substance use, sexuality, relationship issues, and much more.
Other on-campus supports
Off campus supports
More information about resources and supports for students can be found online in on the Faculty of Arts Student Support page.
The University of Waterloo acknowledges that much of our work takes place on the traditional territory of the Neutral, Anishinaabeg, and Haudenosaunee peoples. Our main campus is situated on the Haldimand Tract, the land granted to the Six Nations that includes six miles on each side of the Grand River. Our active work toward reconciliation takes place across our campuses through research, learning, teaching, and community building, and is centralized within the Office of Indigenous Relations.
The University of Waterloo does not tolerate racism or any other form of discrimination and expects campus community members to contribute to a culture where all members feel safe and valued. Any member of the campus community who has experienced racism or discrimination at the University is encouraged to review available processes for addressing their concerns under Policy 33 – Ethical Behaviour and to seek guidance from the Equity Office via email at equity@uwaterloo.ca or through their website
Please note that a cross-listed course will count in all respective averages no matter under which subject code it has been taken. For example, a PHIL/PSCI cross-list will count in a Philosophy major average, even if the course was taken under the Political Science subject code.
Students applying for accommodation due to illness or extenuating circumstances should submit their documentation (verification of illness forms, narratives concerning circumstances) to the Arts Undergrad Office using the form available at
Accommodations for illness or extenuating circumstances | Arts (uwaterloo.ca)
Instructors have a VIF system window linked to Quest that lists students’ exemptions (including self-declared absences). Both the category of exemption granted, and the relevant dates appear in the system. This procedure is meant to protect student privacy. For further information on the process, see the page listed above.
Discretion regarding the form the accommodation takes rests with the course instructor. Guidelines are described in the course calendar,
Undergraduate Studies Calendar | University of Waterloo (uwaterloo.ca)
Academic integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility. [Check the Office of Academic Integrity for more information.]
Grievance: A student who believes that a decision affecting some aspect of their university life has been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70, Student Petitions and Grievances, Section 4. When in doubt, please be certain to contact the department’s administrative assistant who will provide further assistance.
Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence, and to take responsibility for their actions. [Check the Office of Academic Integrity for more information.] A student who is unsure whether an action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek guidance from the course instructor, academic advisor, or the undergraduate associate dean. For information on categories of offences and types of penalties, students should refer to Policy 71, Student Discipline. For typical penalties, check Guidelines for the Assessment of Penalties.
Appeals: A decision made or penalty imposed under Policy 70, Student Petitions and Grievances (other than a petition) or Policy 71, Student Discipline may be appealed if there is a ground. A student who believes they have a ground for an appeal should refer to Policy 72, Student Appeals.
Note for students with disabilities: AccessAbility Services, located in Needles Hall, Room 1401, collaborates with all academic departments to arrange appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability, please register with AccessAbility Services at the beginning of each academic term.
Turnitin.com: Text matching software (Turnitin®) may be used to screen assignments in this course. Turnitin® is used to verify that all materials and sources in assignments are documented. Students' submissions are stored on a U.S. server, therefore students must be given an alternative (e.g., scaffolded assignment or annotated bibliography), if they are concerned about their privacy and/or security. Students will be given due notice, in the first week of the term and/or at the time assignment details are provided, about arrangements and alternatives for the use of Turnitin in this course.
It is the responsibility of the student to notify the instructor if they, in the first week of term or at the time assignment details are provided, wish to submit alternate assignment.