This course studies the atmosphere and the ocean as parts of Earth’s climate system. The climate is studied in both quantitative and qualitative ways through use of the textbook, lectures, labs and problem sets. Today’s lecture includes an examination of Hurricane Irene that hit Connecticut a few days ago on August 28. For this, we use several website sources of local weather information: satellite, radar, tide gauges. The atmosphere is gravitationally attracted to the Earth and is composed of gases that are invisible to the human eye.

As an introduction to public and nonprofit finance, Professor Shiller reflects on the remarkable financial structures that we have in support of public causes, making possible the achievement of higher goals that transcend individual satisfaction of needs. He gives examples of nonprofits, illustrating how that financial form can support a moral mission and social purpose.

Professor Shiller argues that institutional investors are fundamentally important to our economy and our society. Following his thoughts about societal changes in a modern and capitalist world, he turns his attention to the fiduciary duties of investment managers. He emphasizes the “prudent person rule,” and critically reflects on the limitations that these rules impose on investment managers. Elaborating on different forms of institutional money management, he covers mutual funds, contrasting the legislative environments in the U.S. and Europe, and trusts.

To begin the lecture, Professor Shiller explores the origins of central banking, from the goldsmith bankers in the United Kingdom to the founding of the Bank of England in 1694, which was a private institution that created stability in the U.K. financial system by requiring other banks to have deposits in it. Turning his attention to the U.S., Professor Shiller outlines the evolution of its banking system from the Suffolk System, via the National Banking era, to the founding of the Federal Reserve System in 1913.

Midterm Exam 1 covers Lectures 1 through 7.