This course explores the role of money and liquidity in the economy and the institutions that govern them. We begin by asking what money is, examining it both as a social phenomenon across history and as a theoretical construct, from early commodity money to contemporary alternatives such as local currencies and cryptocurrencies. We then consider what money does, studying its effects on the economy in theory and practice, with particular attention to inflation and hyperinflation episodes. Finally, we study monetary policy, emphasizing the Federal Reserve’s history, dual mandate, and the tools it uses to achieve its objectives. Students will engage with research papers, hands-on data exercises, and simple theoretical models to connect abstract ideas with real-world debates in monetary policy.

Units: 1

Max Enrollment: 20

Prerequisites: ECON 202 and ECON 203.

Distribution Requirements: SBA - Social and Behavioral Analysis

Semesters Offered this Academic Year: Not Offered; Spring