Course Detail (Course Description By Faculty)

Money and Banking (33401)

This course is about money, central banks, and financial institutions. We focus on how they affect businesses, how they help companies grow, and what can go wrong.

One focus of the course is on large financial crises. We highlight why a well-functioning monetary and financial system is key to a successful economy. We analyze how central banks use conventional and unconventional monetary policy in crises, using examples from the 2008 financial crisis and the recent inflationary period. We also consider how households and firms react to monetary policy.

A second focus of the course is how companies finance themselves and why they choose banks. Key questions are why banks exist and whether banks have a special role in the economy. We cover fundamental economic concepts, including asymmetric information on credit markets and banks’ instability due to liquidity transformation. To evaluate whether and how such concepts actually matter in the real world, we read and discuss modern empirical research.

A third focus of the course is how central banks regulate the financial sector. We discuss topical questions, such as whether we should stop banks from becoming “too big to fail” and whether banks should receive government bailouts. The regulatory concepts that we discuss affect not only financial institutions, but also businesses and their customers.

There are no essential prerequisites.
Online readings accessible through Canvas.

Lecture slides accessible through Canvas.
Grades are based on a mid-term exam, final exam, homework assignments, and class participation. Will give provisional grades to non-Booth students, but not early final grades.
Description and/or course criteria last updated: June 05 2024
SCHEDULE
  • Winter 2025
    Section: 33401-01
    TTH 10:10 AM-11:30 AM
    Harper Center
    C08
    In-Person Only
  • Winter 2025
    Section: 33401-02
    T 1:30 PM-4:30 PM
    Harper Center
    C08
    In-Person Only
  • Winter 2025
    Section: 33401-81
    T 6:00 PM-9:00 PM
    Building: TBD
    Location: TBD
    Remote-Only

Money and Banking (33401) - Huber, Kilian>>

This course is about money, central banks, and financial institutions. We focus on how they affect businesses, how they help companies grow, and what can go wrong.

One focus of the course is on large financial crises. We highlight why a well-functioning monetary and financial system is key to a successful economy. We analyze how central banks use conventional and unconventional monetary policy in crises, using examples from the 2008 financial crisis and the recent inflationary period. We also consider how households and firms react to monetary policy.

A second focus of the course is how companies finance themselves and why they choose banks. Key questions are why banks exist and whether banks have a special role in the economy. We cover fundamental economic concepts, including asymmetric information on credit markets and banks’ instability due to liquidity transformation. To evaluate whether and how such concepts actually matter in the real world, we read and discuss modern empirical research.

A third focus of the course is how central banks regulate the financial sector. We discuss topical questions, such as whether we should stop banks from becoming “too big to fail” and whether banks should receive government bailouts. The regulatory concepts that we discuss affect not only financial institutions, but also businesses and their customers.

There are no essential prerequisites.
Online readings accessible through Canvas.

Lecture slides accessible through Canvas.
Grades are based on a mid-term exam, final exam, homework assignments, and class participation. Will give provisional grades to non-Booth students, but not early final grades.
Description and/or course criteria last updated: June 05 2024
SCHEDULE
  • Winter 2025
    Section: 33401-01
    TTH 10:10 AM-11:30 AM
    Harper Center
    C08
    In-Person Only
  • Winter 2025
    Section: 33401-02
    T 1:30 PM-4:30 PM
    Harper Center
    C08
    In-Person Only
  • Winter 2025
    Section: 33401-81
    T 6:00 PM-9:00 PM
    Building: TBD
    Location: TBD
    Remote-Only