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Syllabus:

Monetary and Financial Economics B100:3, 7.5 Credits

Swedish name: Penningpolitik och finansiell ekonomi B100:3

This syllabus is valid: 2016-08-01 and until further notice

Course code: 2NE075

Credit points: 7.5

Education level: First cycle

Main Field of Study and progress level: Economics: First cycle, has less than 60 credits in first-cycle course/s as entry requirements

Grading scale: VG Pass with distinction, G Pass, U Fail

Responsible department: Department of Economics

Established by: Rector of Umeå School of Business and Economics, 2016-03-24

Contents

The course analyses the role of money in the economy and provides an introduction to financial economics. The first part of the course describes and analyses the role of the central bank and the importance of banks for the transmission mechanism. The next part of the course deals with interest bearing instruments. Different debt instruments are defined and explained as well as the basic concepts of how to value financial assets. Particular emphasis will be put on bonds. The final part of the course introduces modern portfolio theory, including Markowitz model and CAPM. The econometric part of the course focuses on time series analysis of financial data.

Expected learning outcomes

Upon completing this course, students should be able to:
  • Describe and analyse how central banks conduct monetary policy as well as the role of the private banking system in the transmission mechanism
  • Describe how financial markets work and how to use financial data to price financial assets
  • Calculate and interpret key concepts related to bonds such as duration, convexity and different types of yield measures
  • Apply time series analysis on financial data

Required Knowledge

Economics B100:1 or equivalent.

Form of instruction

The education is given in form of lectures, group sessions and video lectures.

Examination modes

The examination consists of a written examination in the end of the course.

A second exam opportunity is always offered within a short time span after the regular exam date for those students not achieving a Pass. The subsequent exam opportunity is either the re-take opportunity the week before the fall semester or the next regular exam date.

The following grading system will be used: Pass with Distinction (Väl Godkänd), Pass (Godkänd) or Fail (Underkänd).

It is normally not possible to take additional examinations to reach a higher grade. Exceptions can be made for a student with the grade Fail if the examiner (not the lecturer) finds this appropriate. The task must be a minor undertaking, closely related to the learning outcome not reached, and performed in close proximity to the original examination.

When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the Dean of the Business School no later than two weeks before the next examination opportunity.

Credit transfer
Academic credit transfers are according to the University credit transfer regulations.

Literature

Valid from: 2016 week 35

Money, banking, and financial markets
Cecchetti Stephen G., Schoenholtz Kermit L., Stern Leonard N.
4. ed. : New York : McGraw-Hill Education : [2015] : xliv, 674 pages, 34 variously numbered pages :
ISBN: 9789814575164 (Global ed.)
Search Album, the University Library catalogue

Introduction to econometrics
Stock James H., Watson Mark W.
3. rev. ed., Global ed. : Harlow : Pearson Education : 2014 : 848 s. :
ISBN: 978-1-292-07131-2
Search Album, the University Library catalogue