International Money and Banking

This is the class website for University College Dublin module International Money and Banking (ECON30150) being taught by Professor Karl Whelan in Spring 2020.

Here is a handout describing the structure of the module, assessment and other details.

The midterm will take place on Tuesday March 3 at 6pm in Theatre L in the Newman Building. Here is the midterm test set last term. Note that the contents of the midterm can vary considerably from term to term but this gives a good sense of the style of the questions.

Here are some guidelines for the final exam posted February 18. These will be updated as the term goes on.

Lecture Notes

0. Introduction

1. Money as a Medium of Exchange and Some History

2. Banks and Financial Intermediation

3. Liquidity and Solvency

4. Central Banks

5. The Money Supply and Monetarism

6. Problems with Monetarism

7. The Fed and the ECB

8. Central Banks and Interest Rates

9. Banking Crises

 

Source Material and Readings

A Comparative Chronology of Money. Website based on A History of Money from Ancient Times to the Present Day by Glyn Davies.

Jevons on Barter

Milton Friedman: The Island of Stone Money

R. A. Radford:  The Economic Organisation of a P.O.W. Camp

Charles Goodhart: Two Concepts of Money

A History of Money: From AD 800 by John F. Chown. Google Books version. Chapter 5 is “The Great Debasement of Henry VIII’s Reign”

Karl Whelan: How Is Bitcoin Different From The Dollar?

Karl Whelan: So What’s So Special About Bitcoin?

Bank of Ireland 2018 Annual Report

Cleveland Fed: Bank Capital Requirements: A Conversation with the Experts

Patrick Honohan’s Report: The Irish Banking Crisis Regulatory and Financial Stability Policy 2003-2008.

Bank of England: Understanding the fair value of banks’ loans

Bad Journalism on Bank Capital Example One: London Review of Books

Bad Journalism on Bank Capital Example Two: Fortune

Bad Journalism on Bank Capital Example Three: Article on Reserve Bank of New Zealand 

Federal Reserve: Recent Balance Sheet Trends

The weekly consolidated balance sheet of the Eurosystem from the ECB.

Karl Whelan:  Is the ECB Risking Insolvency? Does it Matter?

Karl Whelan: Should Monetary Policy be Separated From Banking Supervision?

Information on Payments Systems: TARGET2 and Fedwire.

ECB: The demand for currency in the euro area and the impact of the euro cash changeover

Paul De Grauwe and Magdalena Polan: Is Inflation Always and Everywhere a Monetary Phenomenon?

Steve H. Hanke and Nicholas Krus: World Hyperinflations

Top Five Hyperinflations

AFP: Venezuela releases new banknotes in cash crisis

New York Times: Venezuala Issues New Banknotes Because of Hyperinflation

Todd Keister and James McAndrews Why Are Banks Holding So Many Excess Reserves?

ECB Protocol (i.e. the legal statute underlying the ECB and Eurosystem).

ECB Press Conferences: Transcripts and Video

ECB monetary policy meeting accounts

ECB: Banking Supervision

San Francisco Fed: Information on the Fed’s role in banking supervision.

FOMC Statements, Minutes, and Transcripts

Joseph Gagnon and Brian Sack: Monetary Policy with Abundant Liquidity: A New Operating Framework for the Federal Reserve

New York Fed (2019). Stressed Outflows and the Supply of Central Bank Reserves

Steve Cechetti and Kermit Schoenholz (2019). The Brave New World of Monetary Policy Operations

Karl Whelan: The Secret Tool Draghi Uses to Run Europe

The ECB’s ELA Procedures

Vítor Constâncio (2018). Past and future of the ECB monetary policy

Karl Whelan (2019): Recommendations for the ECB’s Monetary Policy Strategy Review

Philip Lane (2019). Monetary Policy and Below-Target Inflation