This course studies the monetary systems that facilitate exchange. Such systems overcame the limitations of barter with commodity monies such as gold, and gradually evolved into financial intermediaries that issue paper notes and bank deposits as money. Intermediaries in markets for insurance, debt, and equity are studied too. Also, the effects of financial markets on aggregate economic activity and the level and term structure of interest rates are studied. Not open to students who have taken ECON 423.
Requisite: ECON 111/111E. Limited to 50 students. Spring semester. Professor Woglom.