• The course, taught by a retired Federal Reserve economist and long-time visiting professor at the WU, provides a broad overview of some of the key banking and financial intermediaries and financial markets in the U.S. and European Union (EU) and Euro Area (or EA), that includes 19 nations of the EU that use the euro as currency. We will examine the major lines of business (products) for key financial intermediaries (banking, insurance, pensions, investment, etc.,) and how that determines their portfolio composition (assets and liabilities) and earnings, and the types of risks and competition these institutions face. We will analyze several key financial markets in the U.S. and EU. We also will explore why these institutions and markets are important to their respective economies, and in most cases, to the global financial system.

• The performance of several major financial intermediaries and financial markets had a great impact on the economy, during and after the financial crisis, the Great Recession, and the long and moderate recovery. We will look at the functions of the key short-term money markets (Treasury bills, interbank loans, commercial paper, foreign exchange, etc.,) and long-term capital markets (Treasury bonds, corporate bonds, stocks, and mortgage-backed securities). We will examine the key financial system roles of these important financial intermediaries and institutions (including commercial banks, insurance companies, pension funds, mutual funds, investment companies, and briefly introduce the venture capital and hedge funds industries).  Financial institutions and markets also have been stressed and tested in the pandemic.

• Finally, the course will highlight some of the important similarities, as well as differences, in both financial institutions and financial markets between the U.S. (more direct financial intermediation through financial markets) and European economies (more intermediation through multi-line (universal) banking institutions). We also will examine some of the challenges the two financial systems may face in the years ahead, including any repercussions to the UK and EU from the 2016 ‘Brexit’ vote in the UK, or “trade wars” or other “shocks” to the financial system in 2019, 2020, and 2021, including the 2020-2022 CORONAVIRUS PANDEMIC.

Students will learn the basics about key financial markets and financial institutions in the U.S. and EU. They will understand the business focus and key products of important financial institutions and how that affects their assets and liabilities, and the types of risk they face. Students will learn how key money and capital markets operate in the EU and the US financial systems, and how the financial system makes an important contribution to the economy's performance.

Students will understand how the 2007-2009 global financial crisis affected critical financial intermediaries and financial markets, as well as the US, EU, and global economies. We will also discuss how uncertainty in the global financial system in 2018-2020, including uncertainty arising from the ‘Brexit’ vote in the UK and global trade wars may be affecting the financial system and the real economy. More recently, the coronavirus pandemic has had dramatic impacts on the global economy that also may impact the financial system. We also will examine how these financial markets and institutions faced challenges as central banks “normalizing” monetary policy by raising interest rates and shrinking the size of their (the Fed or the ECB, for example) balance sheets, and how the financial markets and institutions are challenged by monetary policy actions by central banks that are designed to counteract the negative impacts of the global pandemic on their respective economies, including resurgence in inflation following the onset of the COVID Crisis on supply chains and global economies.

This will be a distance learning course.

A passing grade requires missing no more than three classes (3 of 8 classes or 7.5 I out of 20 class hours) without pre-approval from the instructor.

Teaching and learning will be primarily through lectures (posted on WULearn, several lectures per week, for eight weeks beginning the first week of MARCH and continuing through the first week of MAY)), assigned readings & videos, students' participation and discussions in weekly ZOOM Sessions, and on WULearn CHAT & FORUMS, and a class project on a specific financial institution or market topic selected by the student.

Students will be assigned a short paper (around 750-to-1,000 words), that will be due after completion of the lectures and the take-home final examination,due by Email by Sunday, 15 MAY 2022.  Students may work in teams of two (with instructor approval) on the papers. 

FINAL EXAM: (50%)
Students will be required to complete a comprehensive take-home-final examination that will be distributed after the completion of lectures. It will be distributed in at the end of April, and will be due to Mr. Zimmerman on Sunday, 8 MAY  2022, by EMAIL in PDF or Word format.

The Exam will be comprehensive and cover materials from the lecture slides, readings, current articles, videos, homework, other course content, chats, forum contents, and Zoom-type sessions.

NOTE: The WU uses plagiarism software to discourage copying!

CLASS PROJECT (40%):
Short PAPER on a financial system topic. (Length of 750-to-1,000 words.) Due as PDF or Word File by EMAIL to Mr. Zimmerman on Sunday, 15 MAY 2022.

NOTE: The WU uses plagiarism software to discourage copying!

CLASS PARTICIPATION: (10%)
The remaining 10% of the course grade will be class participation. Participation in the DISTANCE LEARNING COURSE will be monitored by participation in ZOOM Sessions (asking and answering questions!), and on WULearn CHAT & WULearn FORUMS. Your questions and comments are important! I will track participation during the course from your email questions, ZOOM participation (questions, comments, discussions, etc...), and CHAT & FORUM participation.

Prof. Gary C. Zimmerman, MA, BA:

PLEASE USE BOTH EMAILS when emailing! One or the other is occasionally not available to me, so please use both to communicate with me & to submit the exam & paper.  

Gary.C.Zimmerman.WU@gmail.com                          gzimmer@wu.ac.at

OFFICE HOURS: For this “Distance Learning” Semester, there will be NO OFFICE HOURS.  
Mr. Zimmerman will be available through EMAIL, during Zoom Lectures, and through the WULearn CHAT and FORUM facilities. Use of the CHAT & FORUM facilities are very helpful for questions about course content, since they will be available to all class members.

 
For ADMINISTRATIVE MATTERS please contact Program Managers in the International Office: coursesinenglish@wu.ac.at.

Final Exam:  Take Home, Due on Sunday, 8 May 2022

Short Paper: Due on Sunday, 15 May 2022