Prerequisites: ECON 82b and 83a, or permission of the instructor.
Considers the relationship of the financial system to real economic activity, focusing especially on central banks. Roughly one-half of the course is devoted to a study of the design and operation of central banks in the modern economy. The other half of the course considers the structure, management, regulations and supervision of bank and nonbank financial intermediaries; including examination of the globalization of the financial system. Students are assumed to know intermediate macroeconomics and elementary financial theory.