Macroeconomics and Global Financial Markets
Prof. Dr. Paul J.J. Welfens
Time: Thursdays, 14:00 - 16:00
Start of Lectures: 14 April 2022
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