Advanced Money and Banking


Shinichi FUKUDA / Hajime TOMURA

Credits / Language / Semester

2Credits / English / Winter


This course covers theoretical and empirical aspects on monetary economics and related topics on money and banking.


Money and Banking, Financial market, Monetary policy


Fukuda's lectures cover empirical issues on short-term capital markets in the world. Tomura’s lectures overview theories of liquidity and credit rationing using Tirole's textbook.

Tomura's Schedule: "Ch." indicates a chapter in the textbook. The journal articles in the list will be used for supplementary materials.
1. Modigliani-Miller theorem, Ch. 2.1-2.2. Moral hazard and outside financing capacity (1), Ch. 3.1-3.4.
2. Moral hazard and outside financing capacity (2), Ch. 4.
3. Moral hazard and liquidity management, Ch. 5.
4. Moral hazard, aggregate liquidity shortages, and liquidity asset pricing, Ch 15.
5. Financing under adverse selection, Ch. 6.
6. Costly state verification and credit rationing, Ch. 3.6. Stephen D. Williamson, 1987, "Recent developments in modeling financial intermediation," Federal Reserve Bank of Minneapolis Quarterly Review, summer: 19-29.
7. Liquidity insurance and bank run, Ch. 12.
8. Credit rationing and economic activity, Ch. 13.
9. Collateral and asset prices in general equilibrium, Ch. 14. Nobuhiro Kiyotaki, 1998, "Credit and Business Cycles," Japanese Economic Review, 49(1): 18?35.

Teaching Methods



Term paper and final exam

Required Textbooks

Jean Tirole, 2006, The Theory of Corporate Finance, Princeton University Press.

Notes on Taking the Course

All lectures will be in English.

Related Resources