(LOXR288) -  KONSTANTINOS DRAKOS

Περιγραφή Μαθήματος

EDUCATIONAL AIM

 

The course unit aims to provide an in-depth understanding of the interrelationship between financial markets and the real economy. The course is divided into two parts. In the first part the students are introduced to fundamental macroeconomic concepts and the role of monetary policy. In the second part the course touches upon special contemporary issues related to the effects of the financial system and policy on real investment decisions and the macro economy.     

 

EDUCATIONAL OBJECTIVES

 

• Introduce students to the fundamental macroeconomic concepts.
• Familiarize students with the tools and the effects of monetary policy.
• Familiarize students with the interrelationship between the financial system and the real economy.

 

LEARNING OUTCOMES

 

On completing the course participants will:

• Be able to comprehend the conduct of monetary policy and its implications.
• Understand how real investment decisions are affected by financial conditions.

 

THEMATIC AREAS

 

• Thematic Area 1: Demand and Money Supply
• Thematic Area 2: Equilibrium in a closed and a small open economy
• Thematic Area 3: Business Cycles: Fiscal and Monetary policies
• Thematic Area 4: Monetary Policy Transmission, Interest Rate Channel, Credit Channel, Balance Sheet Channel, Bank Lending Channel
• Thematic Area 5: The Financial System and The Real Economy, Capital Market Imperfections and Real Investment Decisions.
• Thematic Area 6: Financial Growth and Economic Growth

 

 

 

 

 

 

 

 

 

 

BRIEF DESCRIPTION OF THEMATIC AREAS

 

• Thematic Area 1: Equilibrium in a closed and a small open economy

Joint modelling of Aggregate Demand and Aggregate Supply, definition of equilibrium and adjustment towards it.

• Thematic Area 2: Demand and Money Supply

Presentation of Monetary Mechanics, alternative models for Money Demand, Definition of Money Supply and different monetary aggregates.

• Thematic Area 3: Business Cycles: Fiscal and Monetary policies

Definition of Business Cycles, behavior of macroeconomic variables across its phases, the conduct of Fiscal and Monetary Policies as stabilization mechanisms.

• Thematic Area 4: Monetary Policy Transmission, Interest Rate Channel, Credit Channel, Balance Sheet Channel, Bank Lending Channel

How Monetary Policy Shocks are transmitted to the real economy, presentation and analysis of the various channels.         

• Thematic Area 5: The Financial System and The Real Economy, Capital Market Imperfections and Real Investment Decisions

The behavior of real investment decisions in the presence of imperefcet capital markets, financial constraints and investment.

• Thematic Area 6: Financial Growth and Economic Growth

The role of the financial sector in modern market economies and its impact on economic growth.

 

 

 

 

READING ΜΑTERIAL

 

Useful Textbooks

 

• N. Gregory Mankiw, Lawrence M. Ball, 2011. Macroeconomics and the Financial System. Worth Publishers.
• Andrew Abel, Ben S. Bernanke, Dean Croushore, 2008. Macroeconomics, 6^th ed. Pearson Education.
• Olivier Blanchard, 2003. Macroeconomics. Pearson Education.
• Άγγελος Αντζουλάτος, 2011. Κυβερνήσεις, Χρηματαγορές και Μακροοικονομία. Εκδόσεις Διπλογραφία

 

Useful Articles

 

• Bernanke, B. and M. Gertler (1995), ‘Inside the black box: the credit channel of monetary policy transmission.’ Journal of Economic Perspectives, 9, 4, 27-48.
• Colander, David (2004). "The Strange Persistence of the IS-LM Model". History of Political Economy 36 (Annual Supplement): 305–322
• Fazzari, S., Hubbard, G., and B. Petersen (1988), ‘Financing constraints and corporate investment.’ Brookings Papers on Economic Activity, 1, pp. 141-95.
• Hubbard, G. (1998), ‘Capital market imperfections and investment.’ Journal of Economic Literature, 35, pp. 193-225.
• Stadler, G. (1994). Real Business Cycles, Journal of Economics Literatute, Vol. XXXII, pp. 1750–1783.
• Kashyap, A. and J. Stein (2000), ‘What do a million observations on banks say about the transmission of monetary policy?’ American Economic Review, 90, pp. 407-28.
• Levine, R., Loayza, N., and T. Beck (2000), ‘Financial intermediation and growth: causality and causes.’ Journal of Monetary Economics, 46, 31-77.
• Modern Money Mechanics, 1994. Federal Reserve Bank of Chicago.
• Sriram, Subramanian S. (2001). "A Survey of Recent Empirical Money Demand Studies," IMF Staff Papers, 47(3). International Monetary Fund. 334–65.

 

Useful Databases for data collection:

 

• Bank for International Settlements: http://www.bis.org/
• European Banking Authority: http://www.eba.europa.eu
• European Central Bank: http://www.ecb.europa.eu
• Board of Governors of the Federal Reserve System: federalreserve.gov

 

Other references - publications in the area which may be used during lectures

Ημερομηνία δημιουργίας

Τετάρτη, 9 Δεκεμβρίου 2015