Lecture slides on Banking and Financial Fragility

1.	Introduction
2.	A baseline model
3.	Contagion
4.	Policy responses
5.	Conclusions
	Case Studies:	a. Money market mutual funds
		b. Local government investment pools
		c. Life insurance
		d. Deposit freezes

The links above are to a set of lecture slides for a short course on banking and financial fragility based on the Diamond-Dybvig model. The material is designed for graduate students, could be easily be adapted for advanced undergraduates. It assumes familiarity with solving two-good utility-maximization problems and with the concept of Nash equilibrium; no prior knowledge of banking or macroeconomics is necessary. Covering all of the topics takes approximately 10-12 hours of class time.

Note: The slides touch on only a few of the many issues that have been studied in the literature and make no attempt to survey the work that has been done even on those topics that are covered. Apologies in advance to the authors of the (many) relevant papers that I have failed to mention.