Macroeconomics for Finance
|Kod Erasmus / ISCED:||
|Nazwa przedmiotu:||Macroeconomics for Finance|
|Jednostka:||Wydział Nauk Ekonomicznych|
Anglojęzyczna oferta zajęć WNE UW
Przedmioty obowiązkowe dla I roku Quantitative Finance
|Punkty ECTS i inne:||
The aim of this course is to give the macroeconomic perspective of financial markets. It provides an explanation of the causes and consequences of short- and long-term interest rates changes as well as exchange rate fluctuations. In particular the role of monetary and fiscal policy is underlined and exchange rate systems and exchange rate determinants are discussed.
The detailed content of the course:
1. Monetary policy goals, strategies, and intermediate targets; (course hours: 2);
2. Time-inconsistency problem of monetary policy and its solutions (course hours: 2);
3. Monetary policy tools: OMOs, discount lending, reserve requirements, interest on reserves; monetary policy rules (course hours: 4);
4. Monetary transmission mechanism (course hours: 2);
5. Zero lower bound and non-conventional monetary policy; central banks’ communication and forward guidance (course hours: 2);
6. Expectations formation, the role of expectations in macroeconomics (course hours: 2);
7. The term and risk structure of interest rates; determinants of sovereign bonds yields (course hours: 2);
8. Public debt dynamics, fiscal sustainability (course hours: 2);
9. Determinants of exchange rates; Purchasing Power Parity; Interest Rate Parity; foreign exchange market efficiency; carry trade; portfolio balance model (course hours: 4);
10. International financial system, exchange rate regimes (course hours: 2);
11. Financial cycles and business cycles (course hours: 2).
• Lecture notes
• Mishkin, F. (2016). The Economics of Money, Banking and Financial Markets, Global Edition, 11 ed. Pearson International Edition.
• Walsh C. (2010). Monetary theory and policy, 3rd ed. The MIT Press,.
• Copeland L. (2014). Exchange Rates and International Finance, 6th ed. Pearson Education.
• Additional readings assigned in class.
|Efekty uczenia się:||
The student after completion of this course should:
• understand the role of the central bank and be able to explain how the central banks operate;
• know different exchange rate regimes and be able to explain their advantages and disadvantages;
• know theory of exchange rate determination;
• be able to analyze the public debt dynamics and understand risks associated with high public debt;
• know the concept of financial cycle.
|Metody i kryteria oceniania:||
Exam: written exam composed of multiple choice test questions and open questions (paper-based exam) , or oral (online exam), depending on the pandemic situation.
Essay on a topic related to the course content. The list of the topics will be presented in class.
Właścicielem praw autorskich jest Uniwersytet Warszawski, Wydział Nauk Ekonomicznych.