At the end of the course the student is able to:
- Apply theoretical models of economic and financial institutions
- Critically analyse the assumptions behind these theoretical models
- Discuss central debates on the role of financial institutions
- Perform empirical tests of the theory that is discussed
- Macroeconomics and finance
- Central banking
- Monetary policy
- Money creation
- Interest rate setting
- Government debt dynamics
- The financial sector and economic growth
- Financial institutions
- Financial intermediation
- Credit constraints
- Financial crises and bubble formation
This course covers the fundamentals of financial markets and financial institutions. Monetary policy and the role of the central bank will be discussed, as well as topics on money creation and financial firms. Another part of the course studies the role of financial intermediaries to reduce information asymmetries and help overall economic growth.
The goal of this course is to form financial experts which can readily understand real world events and interpret the daily news in a way that allows them to reach non-trivial insights. By the end of the course the students will be familiar with the forces behind financial markets and will be able to tackle complex and urgent debates that are now being discussed in the news and academic literature.
An important aspect of this course is that while it describes the models and intuition behind institutions in financial markets, it also introduces some of the econometric models which test the theoretical models.
There will be lectures and tutorials. The lectures mainly focus on knowledge transfer and understanding the subject.
The tutorials focus on working out exercises from the book and typical exam questions. The tutorials mainly focus on getting the students to work, and to have time for students’ questions. The tutorials will be partially used for assignment feedback.
- Midterm exam (25% of the final grade)
- Assignment (25% of the final grade)
- Final exam (50% of the final grade)
In case online access is required for this course and you are not in the position to buy the access code, you are advised to contact the course coordinator for an alternative solution. Please note that access codes are not re-usable meaning that codes from second hand books do not work, as well as access codes from books with a different ISBN number. Separate or spare codes are usually not available.