Macroeconomics and Global Financial Markets

Prof. Dr. Paul J.J. Welfens

Time: Thursdays, 14:00 - 16:00

Start of Lectures: 14 April 2022

Room: M.12.25

Slides

moodle 2022

Version 2019: moodle course

Version 12.04.2018

Version 27.04.2017

Version 13.04.2016

Version 15.04.2015

Slides on economic aspects of BREXIT

Contents

Students will acquire key frameworks to analyze national and global financial markets and how they are related to macroeconomic policymaking. In particular, students will become familiar with:

(a) the flow of funds concept

(b) the functioning of key markets such as the market for central bank reserves, bond, equity, foreign exchange, and the derivatives markets

(c) the yield curve

(b) the application of theoretical frameworks to analyze data and cases

(e) the causes for banking crises and speculative attacks, and

(f) and public policy responses to improve the functioning of national and global financial markets.

This course will look at global financial market and how they are related to macroeconomic fundamentals. It introduces students to standard concepts of international finance and open economy macroeconomics as well as financial markets institutions and instruments. The course relies on examples from the U.S., the European Union, as well as emerging markets in Asia, Africa, and Latin America.

1. Introduction to Global Financial Market

2. Financial Markets, Instruments, and Institutions 3. Financial Markets, Economic Policy, and the Economy in the Short Run 4. Financial Markets and Macroeconomic Policies

Downloads (Required Readings)

Welfens (2012) Overcoming the Euro Crisis Prasad, E.S., Rajan, R.G. (2008) A Pragmatic Approach to Capital Account Liberalization, IZA Working Paper No. 3475 Lindgren, C.-J. (1999) Financial Sector and Restructuring: Lessons from Asia, IMF Occasional Paper No. 188 OECD Financial Market Stability Sources of Financial Regulation