Full course descriptionThe aim of this course is to provide an introduction to topics in the field of (international) financial markets, central banks and monetary policy and the banking sector.
The course begins with a classification of financial markets (e.g. capital markets, money markets) as well as an analysis of the role financial markets play in the overall economic framework, both from a macro-economic as well as a micro-economic perspective.
Thereafter, the "management" of financial markets is discussed, in particular the central role played by central banks in this respect. The functions and tasks of central banks will be analysed, in particular their responsibility for monetary policy. In this context, the course will in particular deal with the operational framework for monetary policy, and the interaction of central banks and banks in the money market.
Subsequently, another major player in the financial markets will be analysed, i.e. the banking sector. The functions of banks will be elaborated upon, as well as their respective business activities. Also the developments in the (international) banking sector will be analysed.
The course finishes with an analysis of risk management at banks, and the importance of adequate risk management from the point of view of overall financial stability. In this context, the role of financial supervisors both from a macro-prudential and micro-prudential perspective will be discussed.
Course objectives* To understand the functioning of financial (sub)markets (e.g. capital and money market) and their role and function in the overall economic framework;
* To get a basic understanding of the functions of a central bank and monetary policy;
* To understand the essentials of banks and to get a basic understanding of their operations; to learn about the main developments in the (international) banking sector;
* To understand the basics of financial risk management and the role of both macro-prudential and micro-prudential supervision; to get a basic understanding of financial stability issues.
PrerequisitesSee course manual
Recommended readingTo be announced.
* Selected articles.