Governments, Financial Markets and the Macroeconomy
Full Time// 1st Semester, Course Code: ΜΕΧΡΗ107
Part Time // 1st Semester, Course Code: ΜΕΧΡΗ-Μ107
Credits: 6
Learning Outcomes
This course
- presents the overall economic environment in which all major economic actors (households, firms, banks, investors, governments, central banks) operate,
- describes the major economic forces at work,
- analyses the complex interactions of the macroeconomy with financial markets, governments and central banks,
- explores the risks and opportunities for economic actors from the ever-changing economic and financial conditions,
- analyzes the incentives and dilemmas of the major actors,
- uses current events in the economy and the financial markets, both domestic and international, as a vehicle to tie the course with the real world.
After completing the course, the students are expected to be able to
- understand economic and financial developments,
- read critically the financial press,
- put the right questions to specialized economic analysts and evaluate their responses,
- make economic and financial analyses that can be used for real-life decisions,
- see the ‘big picture’ which will help them with the more advanced courses.
General Competences
- Data collection, analysis and synthesis
- Decision-making
- Independent work
- Work in an international environment
- Development of free, creative and inductive reasoning
Course Content
- Basic macroeconomic variables
- GDP, GNI and components
- External accounts of a country (current account, capital flows account, balance of payments)
- Savings-Investment identity
- Price indices and inflation
- Inflation dynamics
- Inflation and interest rates – Real interest rate
- Inflation, hyperinflation, deflation
- The IS/LM model
- Microfoundations with emphasis on the role of the financial system
- Fiscal and monetary policy
- Macroeconomic analyses with emphasis on economic policy and the financial system
- The dynamics of government debt
- Monetary policy
- Goals, instruments and constraints
- Monetary policy implementation
- Monetary policy and the financial system
- Ονομαστική και πραγματική ισοτιμία
- The capital flows account (CF)
- Interest rates and exchange rates – Interest rate parity
- CF determinants
- The Mundell-Fleming model
- Balance of payments and the domestic economy
- Fiscal and monetary policies under fixed and floating exchange rates
- External disturbances – Economic and financial
- Analyses with hybrid exchange-rate systems
- Currency crises
- Twin crises – Currency and banking
- Special topics
Student Performance Evaluation
Written exam: 100%
- Typically, the students are asked to analyse current policy and investment dilemmas.
- Occasionally, they are asked to comment on a recent article from the financial.
10% grade bonus, based on class participation.
Bibliography
Suggested Bibliography
- Κυβερνήσεις, Χρηματαγορές και Μακροοικονομία (β’ έκδοση) Άγγελος Α. Αντζουλάτος, Εκδόσεις ΔΙΠΛΟΓΡΑΦΙΑ, 2019.
Related Academic Journals
Selected articles from the academic literature and from major policy organizations (ECB, Fed, IMF, BIS…) as need/opportunity arises in class discussions
Master of Science (M.Sc.) in
«Banking and Finance»
Specialization in
«Banking and Financial Management»