Learn the nuances of banking and money in the Economics of Money and Banking online course and become an expert in devising new economic theories of your own.
The Economics of Money and Banking online course by Coursera is a comprehensive 3-week study into the process of bringing about new theories in economics. The course teaches economic thinking by revisiting and updating many of the forgotten tenets of monetary thought which have recently become relevant again.
The Economics of Money and Banking programme focuses heavily on the dealers in money markets and capital markets – as they are the leading profit-seeking distributors of market liquidity to the novel system of market-based credit. Additionally, the training course features flexible deadlines, which enables you to tackle the course at your pace and convenience.
You need to complete all the modules in the Economics of Money and Banking training programme and maintain the minimum score requirements in practice tests and exams to be eligible for the course completion certificate.
Moreover, Coursera and Columbia University will provide the course completion certificate. This course completion certificate will be displayed on your Coursera accomplishment page. You can share the certificate from this page to your LinkedIn profile and resume.
The Highlights
100% online course
Tangible career benefits
English Subtitles
Flexible Deadlines
Approx. 32 hours to complete
Shareable Certificate
Programme Offerings
Practice Exercises
Self-paced learning
Flexible Deadlines
Pre-recorded Video Lectures
video transcript
Shareable Certificate
100% online course.
Courses and Certificate Fees
Fees Informations
Certificate Availability
Certificate Providing Authority
INR 2435
yes
Coursera
Here are the fee details for the certificate experience of Coursera’s Economics of Money and Banking online training course:
Economics of Money and Banking Fees Structure
Course
Fees
Economics of Money and Banking
Rs. 2,435
Also, if you wish to attend this course for free, you can choose the ‘Audit only’ option during enrolment. Choosing the audit option will provide you access to all the course lectures and reading material. However, you need to purchase the course for graded assignments and certificates.
Eligibility Criteria
To receive the course completion certificate for the Economics of Money and Banking programme, you need to submit and pass all the assignments and course exercises, along with the midterm and final exam. It is also advisable to meet the minimum passing criteria required for the course.
Furthermore, purchasing the Coursera certificate experience is necessary to unlock the certificate. You will need to repay the course fee after 180 days of your purchase if you do not manage to complete the course within that time.
What you will learn
Financial knowledge
After completing the Economics of Money and Banking online training course, you will become familiar with various concepts of economics like:
The various roles banking plays in economics like the clearing system, market-making system, and advance clearing system
Creation of new economic theories based on the old market tenets
Various economic principles attached to international money and banking system
If you are looking to enrol in the Economics of Money and Banking online course, you need to follow the following steps:
Visit the home page of Coursera.
Use your credentials to login Coursera credentials. You can also use your Google, Facebook, or Apple ID to log in.
In the catalogue search bar, type the name of the course.
Click on the “Enrol for Free” option that is available on the top right corner of the webpage.
Select the necessary option you want to opt for from the pop-up window.
Application Details
To apply for the Economics of Money and Banking training course, you need to fill any separate application form. Merely logging in to your Coursera account using appropriate credentials will suffice.
The Syllabus
Videos
The Big Picture
Prerequisites?
What is a Bank, a Shadow Bank, a Central Bank?
Central Themes
Reading: Allyn Young
FT: The Eurocrisis, Liquidity vs. Solvency
Hierarchy of Financial Instruments
Hierarchy of Financial Institutions
Dynamics of the Hierarchy
Discipline and Elasticity, Currency Principle and Banking Principle
Hierarchy of Market Makers
Managing the Hierarchy
Readings
Lecture Notes (for download)
Allyn Young
Videos
FT: Quantitative Easing and the Fed
Allyn Young: Money and Economic Orthodoxy
National Banking System Before the Fed
Civil War Finance, Bonds, and Loans
Civil War Finance, Legal Tenders
National Banking System, Origins
National Banking System, Instability
Federal Reserve System, Plan
Federal Reserve System, Actual
FT: Dealer of Last Resort
Reading: Hyman Minsky
Sources and Uses Accounts
Payments: Money and Credit
Payments: Discipline and Elasticity
The Survival Constraint
Payment Example: Money and Credit
Flow of Funds Accounts
The Survival Constraint, Redux
Liquidity, Long and Short
Financial Fragility, Flows and Stocks
Reading
Hyman Minsky
Quiz
Introduction
Videos
FT: Martin Wolf on QE3
One Big Bank
Multiple Banks, A Challenge
Reading: Charles F. Dunbar
Correspondent Banking, Bilateral Balances
Correspondent Banking, System Network
Clearinghouse, Normal Operations
Clearinghouse, Private Lender of Last Resort
Central Bank Clearing
Central Bank Cooperation
FT: European Bank Deleveraging
What are Fed Funds?
Payment Settlement versus Required Reserves
Payment Elasticity/Discipline, Public and Private
The Function of the Fed Funds Market
Payment versus Funding: An Example
Brokers versus Dealers
Payments Imbalances and the Fed Funds Rate
Secured versus Unsecured Interbank Credit
Required Reserves, Redux
Reading
Dunbar
Quiz
Banking as a Clearing System
Videos
FT: The Impact of QE3
Money Market Interest Rate Patterns
What is Repo?
Repo in Balance Sheets
Comparison with Fed Funds
Legal Construction of Repo
Security Dealers Balance Sheet
Repo, Modern Finance, and the Fed
Interest Rate Spreads: Before the Crisis
Interest Rate Spreads: After the Crisis
FT: Ring-fencing and the Volcker Rule
The Eurodollar Market in Crisis
What are Eurodollars?
Why is There a Eurodollar Market?
Eurodollar as Global Funding Market
Liquidity Challenge of Eurodollar Banks
FRA as Implicit Swap of IOUs
Forward Parity, Interest Rates, EH
Forward Parity, Exchange Rates, UIP
Forward Rates are NOT Expected Spot Rates
Reading
Bagehot
Quiz
Banking as a Clearing System, continued
Videos
FT: Depreciation of Iran's Currency
Reading: John Hicks
Bagehot's World, Wholesale Money Market
Economizing on Notes: Deposits, Acceptances
Managing Cash Flow: Discount, Rediscount
Market Rate of Interest
Central Bank and Bank Rate
The Bagehot Rule, Origin of Monetary Policy
Limits on Central Banking: Internal vs. External Drain
FT: Asymmetric Credit Growth in Europe
Market Liquidity, Dealers, and Inventories
Two-Sided Dealer Basics
Economics of the Dealer Function: the Treynor Model
Leveraged Dealer Basics
Real World Dealers
Arbitrage and the Assumption of Perfect Liquidity
Reading
Hicks
Quiz
Banking as Market Making
Videos
FT: Money Market Mutual Funds
Banks as Money Dealers, a Puzzle
Security Dealers as Money Dealers, Matched and Speculative Book
Adapting Treynor to Liquidity Risk
Digression: Evolution of American Banking
The Fed in the Fed Funds Market
Return to the Initial Puzzle
FT: Citibank and the SIVs
The Art of Central Banking
Evolution of Monetary Policy: 1951-1987
The Taylor Rule: 1987-2007
Monetary Transmission Mechanism
Anatomy of a Normal Crisis
Anatomy of a Serious Crisis
Should the Fed Intervene or Not?
The Fed as Dealer of Last Resort: 2007-2009
Reading
Treynor
Quiz
Banking as Market Making, continued
Videos
FT: Trade Credit and the Eurocrisis
Inspiration: The Origin of the Fed
Central Bank Operations, Normal Times
Central Bank Operations, Crisis Times
Settlement Risk, Payments, and Market-making
Q: Standard and Subordinate Coin
Q: War Finance as Financial Crisis
Q: Forward Parity
Q: Payments, CHIPS and Fedwire
Q: Fed Balance Sheet Operations
Quiz
Midterm
Videos
FT: Autonomy of Bank of Japan
Key Currencies as a Hierarchical System
What is Money? Chartalism versus Metallism
Chartalism as a Theory of Money
Quantity Theory of Money
Purchasing Power Parity
Metallism as a theory of money
A Money View of International Payments, FX Dealers
Chartallism, Metallism, and the Money View Compared
Private and Public Money: A Hybrid System
Hybridity in FX Market-making
FT: Costs of Japan's Monetary Policy
Reading: Robert Mundell
Act 1 (1900-1933): Confrontation of the Fed with the Gold Standard
Act 2 (1934-1971): Contradiction Between Keynesian National Management and the Bretton Woods Fixed Rate System
The Dollar System
Act 3 (1972-1999): Flexible exchange, Learning from Experience
Act 4: Global Financial Crisis, Limits of Central Bank Cooperation
Reading
Mundell
Quiz
International Money and Banking
Videos
FT: European Money Market Funds Shifting to Asia and European Core Countries
International Transactions under the Gold Standard
Dealer Model for Foreign Exchange
Central Banking, Defense of Domestic Exchange
Bank of England, Defense Against External Drain
Toward a Theory of Exchange, Without the Gold Standard
FT: High Frequency Trading
Uncovered Interest Parity (UIP) and the Expectations Hypothesis of the Term Structure (EH)
FX Dealers Under the Gold Standard, Redux
Private FX Dealing System
Economics of the Dealer Function, Speculative Dealer
Economics of the Dealer Function, Matched-book Dealer
Digression: Why do UIP and EH Fail?
Central Bank as FX Dealer of Last Resort
Reading: McCauley on Internationalization of Renminbi
Reading
Kindleberger
Quiz
International Money and Banking, continued
Videos
FT: Shadow Banking
Bagehot's World: Separation of Money Markets and Capital Markets
The New World: Integration of Money Markets and Capital Markets
Funding Liquidity Versus Market Liquidity
Digression: Schumpeter on Banking and Economic Development
Payment Versus Funding
Reading: Gurley and Shaw
Financial Evolution: Indirect Finance to Direct Finance
Banking Evolution: Loan-based Credit to Market-based Credit
Preview: Central Banking and Shadow Banking
FT: Argentina in Court to Fight Debt Ruling
Banking as Advance Clearing
Forwards versus Futures
Forward Contracts, Fluctuations in Value and Final Cash Flow
Futures Contracts, Fluctuations in Value and Daily Cash Flows
Cash and Carry Arbitrage, Defined
Cash and Carry Arbitrage, Explained as Liquidity Risk
Cash and Carry Arbitrage, Explained as Counterparty Risk
Cash and Carry Arbitrage, as a Natural Banking Business
Reading
Gurley and Shaw
Quiz
Banking as Advance Clearing
Videos
FT: Sovereign Debt Crises
Reading: FOMC Report (1952)
Treasury-swap Spread, a Puzzle
What is a Swap?
Why swap? An Example from Stigum
Market Making in Swaps
Money Market Swaps, Example
Life in Arbitrage Land
Treasury-swap Spread, Liquidity Risk or Counterparty Risk?
FT: Internationalization of the Euro
Credit Indices
Fischer Black (1970), Risk-free Security
What is a Credit Default Swap (CDS)?
Corporate Bonds
CDS Pricing
Market Making in CDS
Example: Negative Basis Trade and Liquidity Risk
Example: Private backstop of Marketmaking in CDS
Example: Synthetic CDO as Collateral Prepayment
Reading
FOMC
Quiz
Banking as Advance Clearing, continued
Videos
FT: Regulation of Shadow Banking
Shadow Banking vs Traditional Banking
Liquidity and Solvency Backstops
Global Dimension
Evolution of Modern Finance
What is Shadow Banking?
Backstopping the Market Makers
Regulation of Systemic Risk
Regulation of Collateral and Payment Flows
Private Backstop and Public
FT: Future of Banking
Three World Views
Economics View: Commodity Exchange
Finance View: Risk
The Education of Fischer Black
Steps From the Finance View to the Money View
A Money View of Economics and Finance
Reading
Shadow Banking
Practice Exercise
Money in the Real World
Quiz
Final Exam
Instructors
Columbia University, New York Frequently Asked Questions (FAQ's)
1: What are the system requirements for this course?
The course requires you to have a stable internet connection to access the course contents, and a laptop or phone to access it from.
2: Are practice tests available for this course?
Yes, the Economics of Money and Banking online training, features many exercises and practice tests at the end of each week’s module. You’ll have to complete the assignments with the minimum required percentage to pass.
3: What kind of details will the course completion certificate have?
The Coursera course completion certificate will have the logo of the partner institution, the certified Coursera identity of the participant, the name of the course, the signature of the course instructor and lastly a verification URL.
4: What is Money and Banking in economics?
Money is any commodity that has wide usage and is accepted in transactions involving the transfer of services from one individual to another. Bank money comprises book credit that banks lend to their depositors. Transactions made using checks at banks involve the use of bank money.
5: What will I get upon purchasing the certificate experience?
When you buy the Coursera certificate experience, you will get access to all the locked course elements like certificate and graded assignments. Also, you can visit your account’s accomplishment page to view your course completion certificate. If you are not sure about purchasing the course, you can choose the audit course option to get the feel of the programme first.