My favorite course in Econ program CAS IR 571
CAS IR 571 is a great promotional course for those who want to work in the financial industry, such as commercial banking, investment banking, and brokerage, as well as forex-related businesses. The name of this course is Global Money, and the professor who teaches it is Dr. Perry G. Mehrling. Prof. Mehrling, Harvard and the London School of Economics alum. He taught at Columbia University for over 20 years before joining the faculty at Boston University. He currently teaches at the BU Pardee School of Global Studies and concentrates on money and banking, financial thought, and global money. His online course (MOOC) Economics of Money and Banking is one of the most popular financial courses on the internet; you can check it out here.
You might be wondering why the name of this course doesn’t start with EC– that’s because this course is offered by the Pardee school, so it is an elective course outside of the Economics department. MAE students could select up to two electives, and MAEP students can register for up to four electives outside of the Economics department. This is one elective course I highly recommend to my fellow economics students!
Course Content
Going back to the course itself, I have to say it’s really a special course in the financial field. Mehrling named it Global Money, to discuss the conditions under which money (usually US dollars) moves internationally and the consequences of those moves. I know that most econ students have learned a lot about exchange rates during their undergraduate studies, and most have also learned the principles and laws of the financial market. However, I suspect only a few are able to describe the financial market change process with an emphasis on money as the main player (rather than governments and companies, which is the main difference between the traditional view and Mehrling’s “Money View”).
Based on my understanding, I can give a simple example of why “Money views” exist and are necessary. It is well known that the US dollar has raised interest rates in the first half of 2023 twice, and we may also be aware that the executor of the US monetary policy, FED (Federal Reserve System), adjusts the market interest rate level through open market operations. Open market operations affect interest rates, such as selling US treasuries, reducing bank reserves, reducing the money supply, etc. So what happens to all other economic financial systems and industries if their currency appreciates? Most econ students will interact with this topic in depth throughout their coursework. But so far, we still regard the operation of the Federal Reserve and the economic development of other countries as two independent subjects. Some of you could point out that the relationship between the two is related to the exchange rate, but you are still thinking about the world separately. You know each part of the process but have not combined them together. “Money view” thinks that it is because we focus more on the Federal Reserve, the Central Bank, the Ministry of Finance, foreign trade companies, etc. Maybe there’s a better way to help us understand the whole world, which is, that we should put money at the center of the global financial system.
This example may be long, but I hope it gives you a basic understanding of what this course is about. If you are interested in this area, you can try to learn deeper.
Course Structure
The course is very fast-paced because the professor hopes that we can get a thorough understanding of the “money view” through this class. Here is a copy of the Global Money Syllabus, Spring 2022 from when I took the class in Spring ’22.
The whole course is divided into two parts. Before the midterm, we learn about 16 topics that are complemented by one Financial Times article. Then, after midterms, we select two books from the book list and do two presentations with classmates who pick the same book (if no other students pick the same book, you will do it alone). For the final exam, students in the course write a book review based on a book of their choosing from a list provided by Professor Mehrling.
An important piece of the presentation and book review assignments is to go beyond just providing a book summary. You should try to use what you have learned in class to evaluate the material in the book. Think about how the book informs what you have learned over the semester, or how what you have learned supports or contradicts the book. It is also good practice to incorporate outside examples into your analysis and evaluation of the book you are reviewing.
For example, in my book review, I selected a book called “Taming the Tide of Capital Flows.” I used the main idea in this book to explain recent shocks in the global financial market. While the ultimate goal of the assignment is to prove that the author’s idea is robust and applicable to economics, the review should not be a summary of the book. As long as you are utilizing the concepts from the book and engaging with what we learned in class, you will meet the requirements of the assignment.
The course is in the spring semester, and usually has just 10 students, so you don’t need to rush to make your plan right now.
I hope this blog is helpful to you as you choose your courses for your MA in Economics degree. If you want to know more about IR 571, you can reach me via GRS Chat. I hope to see you in the fall, maybe we will even have class together!
About The Author:
Ruohao Ren
MA in Economic Policy
Graduate School of Arts & Sciences