The basic design of the course allows teaching to proceed largely irrespective of Public Health regulations pertaining to the Corona situation. Working through papers and audio slides can be done by students from home. Class size for in-class teaching and the relative share of in-class and online meetings will be adjusted flexibly. If necessary, all meetings can be shifted online.

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. Recent financial crises and the current Covid crisis are analyzed from ´the persepctive of monetary policy and financial regulation

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

Part 2: Money

• Why money? Foundations of monetary theory
• Monetary policy transmission
• Money and business cycles
• New frameworks for monetary and financial stability

Current Topics

• Cryptocurrencies
• Central bank strategy reviews
• Monetary policy in the Covid 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.
  

The attendance requirement is met if a student is present at least 80% of the time at class and online meetings.

Grading: 80% essays (each essay is is equally weighted) , 20% direct participation

The course is self-contained. Key concepts and tools are explained in the course. Prior knowledge in microeconomics, macroeconomics and econometrics is recommended.