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
- Understanding risk and return
- Stock markets and bond markets
- Portfolio decisions
- Asset pricing and financial bubbles
- Banking theory and regulation
- Financial crises and financial regulation with special emphasis on the recent World Financial Crisis.
Part 2: Money
- Why money? Foundations of monetary theory
- Monetary policy transmission
- Money and business cycles
- New frameworks for monetary and financial stability
- The Economics of European Monetary Union
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.
The ultimate goal of the course is to strengthen the analytical ability of students to understand complex financial issues both at a conceptual and practical level by using state-of-the-art methods and tools.
Pursuant to the general guidelines issued by the Vice-Rector for Academic Programs and Student Affairs, the attendance requirement is met if a student is present at least 80% of the time.
The course is based upon presentations by the instructor, class discussions, and written exercises. Each section is supported by basic literature, web-based computer exercises, and research on the internet. Early on students are introduced to reading original research papers which opens up a challenging but fascinating intellectual universe for their own independent studies. Smart use of computer and web resources is encouraged.
25% of the grade: Class participation (one credit per unit)
75% of the grade: Credits acquired from weekly to bi-weekly written assignments (about eight equally weighted assignments in total)
The course is self-contained. Key concepts and tools are explained in the course.
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