The course consists of two major parts. In the first half of the semester the focus is on financial markets and institutions. The second half of the course focuses on money and monetary policy. Throughout the semester current developments in the monetary sector and financial markets are discussed. The recent world financial crisis and the economic crisis in the Eurozone are analyzed in depth.

Part 1: Financial Markets and Institutions

• Pros and cons about the efficiency of financial markets
• Understanding risk and return
• Stock markets and bond markets
• Portfolio theory
• Asset pricing
• Banking theory
• Financial crises and financial regulation with special emphasis on the recent financial crisis.

Part 2: Money

• Why money? Foundations of monetary theory
• Money supply
• Money demand
• Monetary transmission
• Money and the business cycle
• Monetary policy and central banking
• Monetary reform after the financial crisis
• Monetary aspects of the Eurozone crisis
  

In this course students acquire the skills necessary

• to understand fundamental concepts about money, the financial sector, and their interaction with the economy,
  
• to apply their knowledge to financial investment decisions,
  
• to analyze monetary policy and its impact on the economy,
  
• to understand key issues regarding financial crises and financial regulation,
  
• to assess financial reform after the recent world financial crisis,
  
• to read original scientific research papers about money and the financial sector published by internationally renowned top researchers,
  
• to access web resources providing key information about money and financial markets,
  
• to get adequately prepared for writing a bachelor's thesis about a monetary or financial topic.
  

25% of the grade: Class participation

75% of the grade: Credits acquired from weekly to bi-weekly written assignments (equally weighted)