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 asset prices. We study topics such as the link between interest rates and the economy, public debt, and financial crises.
Prerequisites
N/A
Subject matter
Asset pricing, the yield curve and macroeconomic activity, the connection between monetary policy and fiscal policy, interest rates and exchange rates, the implementation of monetary policy, financial crises.
Bibliography
Class notes and slides. We will use material from various sources. I will frequently bring news from the press to the discussion in class. On the course webpage, you will find references to books and papers related to the course.
Teaching method
We have lectures to cover a great part of the material. We use data and news to show how the connection between macroeconomics and financial markets happens in practice. We 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 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 what you are saying. Use data to support your opinion.
Evaluation method
The Final Exam is mandatory and must cover the entire span of the course. It´s weight in the final grade can be between 30 to 70%. The remainder of the evaluation can consist of class participation, midterm exams, in class tests, etc. Overall, written in class assessment (final exam, midterm) must have a wight of at least 50%.
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 the 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 in 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 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.