Macroeconomics of Financial Markets
Code
2233
Credits
3,5
Teacher in charge
André de Castro Silva
Teaching language
English
Objectives
The objective of this course is to analyze the connection between macroeconomics and financial markets. We discuss how macroeconomic fluctuations change decisions in ways that affect prices. We study topics such as the link between interest rates and the economy, public debt, and financial crises.
Prerequisites
Subject matter
Bibliography
We will sue material from various sources. I will frequently bring news from the press to the discussion in class. On the webpage of the course, you will find references to books and papers related to the course.
The course is in http://docentes.fe.unl.pt/acsilva/. Follow the link to The Macroeconomics of Financial Markets (MSc). See the course webpage for data, links and texts. The lecture slides and material restricted by copyright issues will be on Moodle.
Teaching method
We will have lectures to cover a great part to the material. We will use data and news to show how the connection between macroeconomics and financial markets happens in practice. We will constantly relate the models covered in class to data. Our sources of articles for the class discussions are the Economist, the Financial Times, the Wall Street Journal, and others. The analysis in the Economist is usually more detailed. So, we will frequently use articles from the Economist. Read the articles and participate.
Many firms of asset management have economic reports. The objective of the reports is to make you practice how to write your own economic report. You have to be convincing. Explain how to relate a model with that you are saying. Use data to support your opinion.
Evaluation method
The evaluation is composed of a final exam, economic reports, and class participation. Show up with your name tag. The economic reports are to be done in groups of two or three. In reports, your group has to analyze a recent economic event related to the course.
The page limit is four pages, including figures, references, and tables. There will be three reports and I will consider the grades of your best two. So, you don t need to turn in one of them. The reports have to be turned on through Moodle. The due dates are on the webpage. I will give more instructions about the reports during the course. The grade of the class participation is based on your participation in the class discussions: how you answer questions, which questions you make and so on. A good comment is one that changes the direction of a discussion. Don´t try to dominate the discussion. Let others talk too. A good discussant listens, answers questions without deviating, and makes good questions.
-Final exam: TBA (scheduled by the department).
-The final grade is calculated by: 0.6*Final + 0.3*Reports + 0.1*Class Participation.