ECON 507 | Course Introduction and Application Information

Course Name
Economics of Financial Markets
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
ECON 507
Spring
3
0
3
7.5

Prerequisites
None
Course Language
English
Course Type
Required
Course Level
Second Cycle
Course Coordinator
Course Lecturer(s)
Assistant(s) -
Course Objectives This course aims at teaching monetary theory to be able to understand the functioning of the financial system and hence create the necessary economic foundation for the student. Mainly issues concerning money, banking and finance markets will be undertaken. The focus will be on money and monetary policy issues. Also, the role of the central bank in the economy and its conduct of monetary policy will be discussed in addition to the relationship of money with inflation. Moreover, the functioning of the international financial system will be undertaken.
Course Description The students who succeeded in this course;
  • will be able to identify money, its functions and its different measures.
  • will be able to interpret the behavior of interest rates.
  • will be able to explain the goals and the tools of monetary policy.
  • will be able to analyze the factors that affect money supply and money demand.
  • will be able to explain the role of central banks and the implemantation of monetary policy.
  • will be able to explain changes in exchange rates.
  • will be able to explain how the aggregate output is determined under the IS/LM approach.
  • will be able to interpret the reasons of inflation and its relation with money.
Course Content This course will introduce money from a theoretical perspective. First, issues such as money, functions of money and interest rates will be undertaken. Then, money supply, monetary policy of the central bank, money demand and the IS/LM model will be studied in detail. Finally, the international financial system, exchange rates and the relationship of money with inflation will be investigated.

 



Course Category

Core Courses
X
Major Area Courses
Supportive Courses
Media and Management Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 Preliminaries Mishkin, Chapter 1, 2, 3
2 The Behavior of Interest Rates Mishkin, Chapter 5
3 Central Banks Mishkin, Chapter 13
4 The Money Supply Mishkin, Chapter 14
5 The Money Supply Mishkin, Chapter 14
6 Tools of Monetary Policy Mishkin, Chapter 15
7 The Conduct of Monetary Policy Mishkin, Chapter 16
8 Exchange Rates Mishkin, Chapter 17
9 The International Financial System Mishkin, Chapter 18
10 The Demand for Money Mishkin, Chapter 19
11 The Demand for Money Mishkin, Chapter 19
12 The ISLM Model Mishkin, Chapter 20
13 Monetary and Fiscal Policy Mishkin, Chapter 21
14 Money and Inflation Mishkin, Chapter 24
15 Final Review
16 Review of the Semester  

 

Course Notes/Textbooks Mishkin, Frederic S. The Economics of Money, Banking, and Financial Markets. 2010. Prenitce Hall. Required.
Suggested Readings/Materials A list of articles that will be studied in relation to each subject will be provided in class.

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
16
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Homework / Assignments
1
25
Presentation / Jury
Project
1
50
Seminar / Workshop
Oral Exams
Midterm
Final Exam
1
25
Total

Weighting of Semester Activities on the Final Grade
2
75
Weighting of End-of-Semester Activities on the Final Grade
1
25
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Theoretical Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: 16 x total hours)
16
Study Hours Out of Class
16
3
Field Work
Quizzes / Studio Critiques
Homework / Assignments
1
30
Presentation / Jury
Project
1
40
Seminar / Workshop
Oral Exam
Midterms
Final Exam
1
30
    Total
196

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To improve and deepen actual and advanced level knowledge in economics in the level of expertise by inventive thoughts and/or research and to get inventive contributions to science.

X
2

To comprehend the interaction between economics and related fields; to achieve inventive results by using knowledge requiring expertise in analysis, synthesis and evaluation of new and complex ideas.

X
3

To be able to apply the advanced level knowledge acquired in economics and finance.

4

Creating new knowledge by combining the knowledge of financial economics with the knowledge coming from other disciplines and also be able to solve problems which requires expert knowledge by applying scientific methods.

X
5

To be able to critically evaluate the knowledge in financial economics, to lead learning and carry out advanced level research independently.

6

Being able to use a foreign language for both following scientific progress and for written and oral communication.

X
7

To be able to develop new strategic approaches for unexpected, complicated situations in financial economics and take responsibility in solving it.

8

To be able to use computer programs needed in the field financial economics as well as information and communication technologies in advanced levels.

9

To possess the communication network to put the economic and social needs of the region of residence on the agenda.

10

To have adequate social responsibility and conciousness about the needs of society and to have the experience and authority  to organize and support the operations that can affect and drive  the social dynamics when necessary.

X
11

To be able to think analytically to identify problems in financial economics and to be able to make policy recommendations in economics and finance based on scientific analysis of issues and problems.

X
12

To protect the social, scientific and ethical values at the data collection, interpretation and dissemination stages and to be able to introduce and supervise these values.

13

To be able to use the skills of modeling, empirical analysis and formulating policy options that are developed for financial economics, in interdisciplinary contexts.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest