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.

Related Resources