The 1913 Federal Reserve Act created the modern day Federal Reserve system. In this lecture we explain the basics of what the law did and how the Fed influences the economy. Perfect for APGOV students or anyone seeking an overview of US Monetary policy.

Final examination for a class at MIT covering game theory and its application to economics. The exam is one-hour-and-twenty minutes and intended to be open-book. It has four multi-part free response questions focusing on game theory as a solution to economic questions.

This course provides students with a broad historical and social-scientific introduction to a central aspect of modern economic life: Finance. By drawing upon a variety of disciplinary perspectives from the humanities and social sciences, the course offers a multi-dimentional picture of finance, not only as an economic phenomenon, but as a political, cultural, intellectual, material, and technological one. The course offers an introduction to foundational financial concepts and technologies, and will help students understand finance as a complex and multifaceted phenomenon. This course also provides students with the opportunity to improve skills in written communication, and to learn tools for historical analysis and textual interpretation.

This 12-minute video lesson looks at alternate bailout plans and considers their moral hazard. [Financial Bailout playlist: Lesson 10 of 15]

This 11-minute video lesson is the first in Kahn's Financial Bailout series. It provides a review of balance sheets and explains the difference between illiquidity and insolvency. [Financial Bailout playlist: Lesson 1 of 15]

This 11-minute video lesson looks at a hypothetical bank balance sheet and explains what book value means. [Financial Bailout playlist: Lesson 2 of 15]

This 11-minute video lesson explains what it means when the market value of a stock is different from its book value. [Financial Bailout playlist: Lesson 3 of 15]

This 11-minute video lesson explains the different ways of accounting for an asset. It considers the mark-to-model vs. mark-to-market. [Financial Bailout playlist: Lesson 4 of 15]

This 11-minute video lesson looks at how the bank can liquidate assets to pay off debt that comes due. [Financial Bailout playlist: Lesson 5 of 15]

This 12-minute video lesson looks at how the bank gets bailed out by an equity infusion from a sovereign wealth fund. [Financial Bailout playlist: Lesson 6 of 15]

This 10-mintue video lesson looks at what happens when there is no equity infusion and the bank goes in to bankruptcy. [Financial Bailout playlist: Lesson 7 of 15]

This 12-minute video lesson looks at how the banks are connected and what happens when one bank fails. [Financial Bailout playlist: Lesson 8 of 15]

In this 11-minute video lesson Kahn considers what Paulson wants to do and explains why he does not like it. [Financial Bailout playlist: Lesson 9 of 15]

This course is an introduction to the economic theories of financial crises. It focuses on amplification mechanisms that exacerbate crises, such as leverage, fire sales, bank runs, interconnections, and complexity. It also analyzes the different perspectives on the origins of crises, such as mistaken beliefs and moral hazard, and discusses the optimal regulation of the financial system. The course draws upon examples from financial crises around the world, especially the recent subprime financial crisis.
14.09 is offered during the Independent Activities Period (IAP), which is a special 4-week term at MIT that runs from the first week of January until the end of the month.

In this activiy when property rights are absent participants have financial incentive to take what they can get immediatly as opposed to waiting until the resource is more valuable. Adding strong property rights provides the proper finanacial incentives for students to wait to extract the resource when it is most valuable.

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Financial Statements & Present Value Models

Short Description:
This book is for those whose financial management focus is on small businesses. For you, we adapt the traditional financial management themes emphasized in corporate financial management courses to meet the needs of small businesses.

Long Description:
This book is for those whose financial management focus is on small businesses. For you, we adapt the traditional financial management themes emphasized in corporate financial management courses to meet the needs of small businesses.

Many financial managers of small businesses come from farms or agribusinesses. Others are interested in working for or starting businesses in the food or retail sectors. In most cases, these businesses aren’t organized as C-corporations impacting things like taxes, depreciation, and legal requirements around compiling and reporting financial data. They are rarely publicly traded which creates unique constraints to raising debt and equity capital and calculating required risk-adjusted returns.

These financial managers are interested in solving specific problems they face in family or small businesses. They want to know how to apply the tools they are learning—coordinated financial statement analysis, present value analysis, management of cash flow, measuring their opportunity costs, etc.—to the problems they face at home. As we started to work on the actual problems faced by these managers, it quickly became clear that corporate finance tools don’t exactly fit the small businesses they come from. Further, in attempting to tackle the problems they bring, we learned that finding and/or constructing the data needed for financial management is another skill set often overlooked and in need of development. In the end, after investing a lot of time, we found that—without adaptation—corporate finance theory as traditionally taught doesn’t meet the knowledge needs and application skills of financial managers of small businesses. We wrote this book to be a catalyst that enables students and managers of small businesses to learn the tools and skill sets that will help them make sound financial management decisions.

Word Count: 179566

ISBN: 978-1-62610-114-2

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Short Description:
Financial Strategy for Public Managers is a new generation textbook for financial management in the public sector. It offers a thorough, applied, and concise introduction to the essential financial concepts and analytical tools that today’s effective public servants need to know.

Long Description:
Financial Strategy for Public Managers is a new generation textbook for financial management in the public sector. It offers a thorough, applied, and concise introduction to the essential financial concepts and analytical tools that today’s effective public servants need to know. It starts “at the beginning” and assumes no prior knowledge or experience in financial management. Throughout the text, Kioko and Marlowe emphasize how financial information can and should inform every aspect of public sector strategy, from routine procurement decisions to budget preparation to program design to major new policy initiatives. They draw upon dozens of real-world examples, cases, and applied problems to bring that relationship between information and strategy to life. Unlike other public financial management texts, the authors also integrate foundational principles across the government, non-profit, and “hybrid/for-benefit” sectors. Coverage includes basic principles of accounting and financial reporting, preparing and analyzing financial statements, cost analysis, and the process and politics of budget preparation. The text also includes several large case studies appropriate for class discussion and/or graded assignments.

Word Count: 83676

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This online lifetime value calculator quickly demonstrates the financial value of a satisfied customer.

Inflation, unemployment, recession, economic growth—these economic concepts affect people in very real ways. In two thought-provoking, interactive lessons, this course teaches students about fiscal policy, the avenue by which Congress and the president attempt to influence the economy. Graphs compliments of FRED.

In this assignment, students think about four events that would affect a country's exchange rate. Without actually drawing a supply and demand diagram, students say what direction, if at all, each curve would shift--and whether the currency would appreciate or depreciate as a result.