ECON-353 Financial Analysis and the Economy

Course: ECON-353
Title: Financial Analysis and the Economy
Professor: Stephanie A. Bell, Ph.D.
Office: 203B Manheim Hall
Phone: 235-5700
Office Hrs: 2:00-3:30 T,TR and by appointment
E-mail: bellsa@umkc.edu 

Textbooks:     Keynes, J.M., The General Theory of Employment,                           Interest and Money		To order The General Theory, click here.
Wolfson, M.H., Financial Crises: Understanding the                           Postwar Experience
Roo-Pak, Financial Analysis and the Economy

Course Description:  ECON 353 is designed to provide the student with a framework for evaluating the cyclical behavior of the economy. Since this course is entitled "Financial Analysis and the Economy," we will emphasize the role of money and finance in our examination of the economy. Specifically, we will examine changes in the balance sheets of households, businesses, and financial institutions – the three dominant private sectors in the American economy. As we will discover, these changes will correspond to changes in the behavior of the macro economy.

Learning Objectives: The course will be divided into two (not necessarily equal) parts. In the first part of the course, we will consider the importance of investment and the role of finance. We will answer questions like: (1) How do businesses decide when to invest and how to finance their investment?; (2) Why is investment so volatile?; and (3) Why do financial crises (or "credit crunches") occur? In the second part of the class we will evaluate our business-cycle model, focusing on the 1991-2000 expansion. We will look for empirical evidence to support the theoretical model developed in the first part of the class.

Expectations: I have certain expectations concerning your responsibilities and your behavior in this class.

1. I expect you to read the syllabus and to be aware of the policies (e.g. grading, make-up exams, etc.) stated therein.
2. I expect you to behave appropriately in class. I will not tolerate ringing cell phones, talking, coming in late or leaving early, or otherwise disruptive behaviors. Obviously, your class participation grade will reflect your ability to comply with these expectations.
3. I expect that you will put forth effort in learning the material covered in this class. The material is difficult; you will not pass the class if you attempt to learn it the night before an exam. You must read (and re-read) assigned material before coming to class. Class participation is a substantial part of your grade, so coming to class prepared will strengthen your participation grade. (It also makes class discussions more interesting/fruitful.)
4. I expect that if you are having problems with the class that you will come see me. I am more than willing to provide additional assistance so please do not hesitate to ask. Be sure not to wait until the last minute, however, as there is very little chance that I will be able to help you acquire a good command of the material a few days before an exam.
5. I expect you to behave with honesty and integrity. Cheating will not be tolerated and will result in an automatic F and the maximum allowable disciplinary action. I encourage you to work in small study groups, help one another with difficult material, etc. but you must demonstrate your own understanding on examinations.

Grading:

Participation – 100 points
Exam #1 – 100 points
Paper/Presentation – 100 points
Final Exam – 100 points

Evaluation:

Participation – 15%
Exam #1 – 25%
Final #2 – 30%
Paper/Presentation – 30%

Policies: No makeup exams will be given. [Note: if you notify me of an excused absence at least one week prior to a midterm exam, you may be able to take an early make-up exam, at my discretion. Excused absences include university-sponsored events and medical appointments – each requires written notification from the coach, sponsor, or doctor, as appropriate. Make-up exams will not be given to students who wake up with a stomachache, a flat tire, a sore throat, etc. on exam day.] An unexcused absence will result in an F on the exam.

* Exam dates and a due date for the paper will be determined in the coming weeks.
**Late papers will be penalized 10 points per day.