Advanced Money and Banking
Instructors
FUKUDA Shinichi/TOMURA Hajime
Term / Language / Credits
A1A2 / English / 2
Objectives
This course covers theoretical and empirical aspects on monetary economics and related topics on money and banking.
Keywords
Money and Banking, Financial market, Monetary policy
Schedule
Fukuda's lectures cover empirical issues on short-term capital markets in the world. Tomura’s lectures overview the theories of liquidity and credit rationing using Tirole's textbook. The topics to be covered are ("Ch." indicates a chapter in the textbook):
1. Corporate finance and Modigliani-Miller theorem, Ch. 2.1-2.2.
2. Moral hazard and outside financing capacity, Ch. 3-4.
3. Liquidity management, Ch. 5.
4. Aggregate liquidity shortages, and liquidity asset pricing, Ch. 15.
5. Financing under adverse selection, Ch. 6.
6. Liquidity insurance and bank run, Ch. 12.
7. Costly state verification and credit rationing, Ch. 3.6.
8. Credit rationing and economic activity, Ch. 13.
9. Asset price and systemic risk, Ch. 14.
Teaching Methods
Lecture
Grading
Quiz during the class and final exam
Required Textbook
Jean Tirole, 2006, The Theory of Corporate Finance, Princeton University Press.
Notes on Taking the Course
All lectures will be in English.