Calendar7+-+The+Monetary+System+and+the+Quantity+Theory+of+Money

[|Boundless Learning]: Additional resources specifically developed for the textbook chapters below can be found by clicking the link to the left. **Beware**: You will have to sign up with Boundless Learning and choose Mankiw's textbook first. Then, you will have to search for the right chapter.


 * __March 26__:** The meaning of money (Syllabus Section 2.5)


 * __Homework Due__
 * __Mankiw__: Chapter 29 (The Meaning of Money section)


 * __Assessments and A__ __ ctivities __ : Lecture on money (PDF below)
 * [[file:1 - Functions of Money.pdf]]


 * __Related Readings__
 * __[|Competing Money Supplies]__


 * __March 28__:** The fractional reserve banking system and money creation (Syllabus Section 2.5)


 * __Homework Due__: Read Mankiw Chapter 29 (Banks and the Money Supply section) and watch the following video.
 * media type="youtube" key="Ov2Sd-QRi_g" height="315" width="560"


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * 1) Explain the three functions of money.
 * 2) Define commodity money and fiat money. Which one do we use?


 * //Lecture//: The fractional reserve banking system and money creation (PDF below)
 * [[file:Fractional Reserve System and Money Creation.pdf]]


 * __Related Readings__
 * [|The Federal Reserve System]
 * __[|Financial Regulation]__
 * [|The Gold Standard]
 * [|Competing Money Supplies]
 * [|Bank Runs]


 * __April 9__:** The Classical theory of inflation (Syllabus Section 2.5)


 * __Homework Due__: Chapter 30 (The Classical Theory of Inflation and Money Growth section) and watch the following videos.
 * __ Khan Academy __
 * __[|Velocity of money]__
 * [|Deflation despite increases in the money supply]


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * You take $100 you had kept in your mattress and deposit it in your bank account. If this money stays in the banking system as reserves equal to 10 percent of deposits, by how much will the total amount of reserves in the banking system increase?


 * __//Lecture//__: The Classical theory of inflation (PDF below)
 * [[file:Classical Theory of Inflation.pdf]]


 * __Related Readings__
 * [|Inflation]
 * [|Money Supply]


 * __April 11__:** The quantity theory of money (Syllabus Section 2.5)


 * __Homework Due__: Read Mankiw Chapter 30 (The Inflation Tax and The Fisher Effect sections) and watch the following videos.
 * __ Khan Academy __
 * [|Real and nominal return]
 * [|Calculating real return in last year's dollars]
 * [|Relation between nominal return, real return, and inflation]


 * __Assessments and Activities__: Free-response/problem and lecture


 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * 1) //Define the following terms: classical dichotomy and monetary neutrality.//
 * 2) //Explain how an increase in the price level affects the real value of money.//


 * __//Lecture//__: The inflation tax and the Fisher effect
 * [[file:The Quantity Theory of Money and the Equaltion of Exchange.pdf]]


 * __Related Readings__
 * [|Inflation]


 * __April 15__:** The inflation tax, the Fisher effect, and the costs of inflation (Syllabus Section 2.5)


 * __Homework Due__: Chapter 30 (The Costs of Inflation section) and watch the following video.
 * __ Khan Academy __
 * __ [|Hyperinflation] __


 * __Assessments and Activities__: Free-response/problem and lecture
 * __//Free-response/problem//__: You will work cooperatively with your partner to construct a response to the following prompt.
 * 1) //Define quantity equation//
 * 2) According to the quantity theory of money, what is the effect of an increase in the quantity of money?


 * __//Lecture//__: The costs of inflation (PDF below)
 * [[file:The Costs of Inflation.pdf]]
 * __Related Readings__
 * [|Inflation]
 * [|Present Value]


 * __April 17__:** Test on t he monetary system and the quantity theory of money