Monetary and Financial Macroeconomics

Teacher(s)

Pensieroso Luca;

Language

English

Prerequisites

Basic knowledge (BAC level) in microeconomics, macroeconomics and econometrics is required.

Main themes

The course seeks to analyse important economic concepts et issues related to money and financial markets, mainly from a macroeconomic perspective.  The main topics that are covered during the course are : the efficiency of financial markets, arbitrage mechanisms on financial markets and the role of anticipations, risk and porfolio choice, speculation and asset bubbles, the determination of short- and long-term interest rates, monetary policy and the credit market, monetary policy and the foreign exchange market.  These topics will be analyzed in a macroeconomic context.  We will investigate in particular how money and financial variables matter for macroeconomic policy and may influence the macroeconomic performances of a country.

Aims

At the end of this learning unit, the student is able to :
1	At the end of the course, students are supposed to have a good knowledge of the main concepts in monetary and financial economics, on one hand, and to have a good understanding of the macroeconomic role of money and financial variables, on the other hand.

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.

Content

The course is composed of 4 parts :
1.    Presentation of the main concepts in monetary and financial economics : arbitrage, market efficiency, term structure of interest rates, role of anticipations, .. ;
2.    In-depth     analysis of the main transmission mechanisms of monetary policy (interest rates, exchange rates, credit) and analysis of speculative bubbles on asset markets
3.    Study of the role of money in a macroeconomic context : theoretical aspects (e.g. the impact of mo-netary policy on GDP, prices, and unemployment) and empirical aspects (econometric analysis of the impact of monetary policy on the main macroeconomic variables, VAR analysis of the impact of monetary policy, empirical application of DSGE models, ')
4.    Theoretical and empirical analyses of banking and financial crisis
 

Teaching methods

Ex-cathedra lectures
Readings of journal articles
 

Evaluation methods

Oral/written examen

Bibliography

Mishkin, F. « The Economics of Money, Banking, and Financial Markets », 8th edition, Addison Wesley
Articles divers
Notes de cours
 

Faculty or entity

ECON