Teaching a course in money and banking can be simultaneously challenging and easy. It is challenging because teaching the course well often requires a fair amount of institutional knowledge, which an instructor may not have acquired in graduate school. However, it is easy because the course can be geared to the coverage of current events, so economic data releases and the state of the economy help the instructor develop a new course every semester and produce an interesting lecture every day.

There are many different ways to teach a course on money and banking. At most schools, the only prerequisite is principles of economics, so the course typically covers financial markets and institutions, present value, principles of banking, basic macroeconomic concepts, institutional details of central banking, and key concepts concerning monetary policy. At some universities, students take a course in intermediate macroeconomics before they take money and banking, so students can see how monetary policy operates in the context of a detailed macroeconomic model. At other universities, especially those without finance courses, the course may be geared more to the microeconomics of financial markets, and may contain more detailed discussions of institutions and the determination of asset prices.

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Copyright © 2012 Edward Elgar Publishing. This book chapter first appeared in International Handbook on Teaching and Learning Economics.

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