Lehrende: Dr. Thanh Son Pham
Veranstaltungsart: Vorlesung + Übung
Anzeige im Stundenplan:
Semesterwochenstunden: 3
Credits: 6,0
Unterrichtssprache: Englisch
Min. | Max. Teilnehmerzahl: - | 75
Kommentare/ Inhalte: Recent events such as the recent financial crisis and ensuing Great Recession have highlighted the important connection between finance and macroeconomics. We first discuss the basic business of banking and focuses on bank balance sheets. There we also discuss how banking has changed in the last several decades, discussing the rise of a so-called "shadow banking" sector. We next study the creation of money and define terms like the monetary base and the money multiplier. We also investigate the usefulness of the liquidity transformation in which financial intermediaries engage and the sensitivity of financial intermediaries to runs. To that end, we provide a simplified exposition of the classic \textbf{Diamond and Dybvig (1983)} model of bank runs and policies to reduce the frequency and severity of banking panics and provide some historical context. In addition, we revisit the asset pricing in the context of a microeconomically founded consumption capital asset pricing model (CAPM) based on the stochastic discount factor. The concept of a yield curve is introduced and the expectations hypothesis, as well as the expectations hypothesis allowing for a term premium, are discussed. We include a discussion comparing and contrasting conventional and unconventional monetary policy. Finally, we discuss the concept of the equity premium and uses out modeling framework to argue why one ought to expect stocks to return more (in expectation) than riskless government bonds. We also define and discuss bubbles and present some empirical evidence related to bubbles. Concepts 1. The Basics of Banking 2. The Money Creation Process 3. A Model of Liquidity Transformation and Bank Runs 4. Bond Pricing and the Risk and Term Structures of Interest Rates 5. The Stock Market and Bubbles 6. Financial Factors in a Macro Model 7. Financial Crises and The Great Recession
Lernziel: The course focuses on the issues of money and monetary policy implementation in the closed economy contexts. The aims and objectives of the course are as follows • Understanding the theories that relate to the existence of money and modern banking system, • Developing a number of macroeconomic models integrating with the banking system through which macoreconomic policy can be evaluated. • Understanding about financial frictions and private agents' decision.
Vorgehen: Classroom teaching and learning
Literatur: Main reading Garin, Lester and Sims, Intermediate Macroeconomics, 2021. Part VI.
Zusätzliche Hinweise zu Prüfungen: A 2-hour (technically last 90 minutes) closed-book exam.
