EDUCATION AND TRAINING INFORMATION SYSTEM (ECTS INFORMATION PACKAGE)
| AcademicYear | Course Code | Course Name | Year of Study | Offered semester | ECTS | Theory+Practice (Hour) |
|---|---|---|---|---|---|---|
| 2024-2025 | FEC 561 | Macroeconomics for Finance | Ms Year I | Fall and Spring | 6 | 3+0 |
| English | |
| Core | |
| Graduate | |
|
Erhan Aslanoğlu, Prof. (Fall / Spring) |
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| The aim of the course is to introduce the students to the principles of macroeconomic analysis. The course starts with a very simple model with many simplifying assumptions. The students are then introduced to more advanced aspects of the model by relaxing the simplifying assumptions one by one and introducing new elements along the way. By moving towards more complex and realistic models step by step, the students can easily grasp the basics and explore the workings of the macroeconomy rigorously, ending up with a full-fledged macroeconomics model. | |
Upon successful completion of the course, students will be able to;
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| Face to Face | |
| 1. Selected Readings | |
| Theoretical lectures(Lecture), Study time for Theoretical Lectures (Lecture), Assignments, Midterm(s), Study time for midterm(s), Final exam, Study time for final exam | |
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Yes
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Requires consent of instructor for undergraduate students
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| Final grade will be consisted of 10% participation, 30% midterm, 60% final exam. Grading on a curve will be used in the class. |
| 1. What Macroeconomics is About? The Measurement and Structure of the National Economy 1.1 The Scope of Macroeconomics 1.2 Macroeconomic Aggregates | |
| 2. What Macroeconomics is About? The Measurement and Structure of the National Economy Continued. 2.1 The Measurement and Structure of National Economy 2.2 Savings and Wealth 2.3 Interest Rates | |
| 3. Money: What is it? How it is Created? Who Creates Money? 3.1 Origins of Money 3.2 Functions of Money 3.3 Monetary Aggregates | |
| 4. Financial Instruments, Financial Markets and Financial Institutions. Bond Basics. 4.1 Types of Bonds 4.2 Bond Pricing 4.3 Suppy and Demand for Bonds 4.4 Why Bonds are Risky? 4.5 Real and Nominal Interest Rates | |
| 5. The Risk and Term Structure of Interest Rates 5.1 Credit Risk, Bond Ratings and Bond Yields 5.2 The Yield Curve 5.3 The Expectations Hypothesis 5.4 The Liquidity Premium Hypothesis | |
| 6. Depository Institutions: Banks and Bank Management 6.1 Commercial Bank’s Assets and Liabilities 6.2 Bank Capital and Measures of Bank Profitability 6.3 Sources and Management of Bank Risk | |
| Midterm | |
| 8. Central Banks in the World Today 8.1 Origin and Function of Central Banks 8.2 Objectives of Central Banks 8.3 Features of an Effective Central Bank 8.4 Relationship between Monetary and Fiscal Policy | |
| 9. The Central Bank Balance Sheet and the Money Supply Process 9.1 Central Bank’s Balance Sheet and The Monetary Base 9.2 How the Central Bank’s Balance Sheet Changes 9.3 Deposit Expansion Multiplier 9.4 The Monetary Base and The Money Supply | |
| 10. Monetary Policy: Stabilizing the Domestic Economy 10.1 Conventional Monetary Policy Toolkit 10.2 Links between Monetary Policy Tools and Objectives 10.3 Taylor Rule 10.4 Unconventional Monetary Policy Toolkit | |
| 11. Exchange Rate Policy and the Central Bank 11.1 Links Between Exchange Rates and Monetary Policy 11.2 Mechanics of Exchange Rate Management 11.3 Costs, Benefits and Risks of Fixed Exchange Rates | |
| 12 Money Growth, Money Demand, and Modern Monetary Policy 12.1 The Role of Monetary Aggregates 12.2 The Velocity of Money and the Quantity Theory of Money 12.3 The Transactions Demand and The Portfolio Demand for Money 12.4 Why Key Central Banks Have Shifted Away From Targeting Money Growth | |
| 13 Output, Inflation, and Monetary Policy 13.1 The Determinants of Output and Inflation in the LR 13.2 The Role of Monetary Policy in the Dynamic AD Curve 13.3 The AS in the Short Run and the Long Run 13.4 SR and LR Equilibrium with Dynamic AD and AS Curves | |
| 14 Understanding Business Cycle Fluctuations 14.1 Sources of Fluctuations in Output and Inflation 14.2 Changes in Output and Inflation with AD/AS 14.3 Monetary Policy Challenges and Tradeoffs | |
| Review Before the Exam | |
| Final | |
| N/A |
| Assesment Methods And Criteria | Quantity | Percentage (%) |
|---|---|---|
| Assignments | 2 | 20 |
| Midterm(s) | 1 | 30 |
| Final exam | 1 | 50 |
| Total (%) | 100 |
| Financial Economics | Curriculum | Prerequisites / Conditions Graph |
| Financial Economics (without thesis) | Curriculum | Prerequisites / Conditions Graph |
| F = Full | P = Partial | N = None |
| Program | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Financial Economics (with thesis) | N | N | N | N | N | P | P |
| Program | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Financial Economics (without thesis) | F | P | F | P | P | F | P |
| M = Master | D = Develop | I = Introduce | N = None |
| Graduates of the programs will be able to; |
| 1. Model financial and economic problems to facilitate decisions making |
| 2. Integrate complex financial and economics information and analysis into a written report in a well-organized and easy to understand manner |
| 3. Apply appropriate principles of valuation to major financial assets and securities |
| 4. Direct a project and present the results of the project which also may require using IT |
| 5. Evaluate risk and devise risk management strategies in the context of an organization’s mission and objectives |
| 6. Follow and evaluate the developments in finance and economics literature |
| 7. Present his/her research both in a written format and orally to contribute to finance and economics literature. |
| Program | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Financial Economics (with thesis) | N | I | N | N | N | I | I |
| Program | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Financial Economics (without thesis) | I | N | N | N | N | N | N |