banking macro syllabus

Consumer finance mishkin

Learning objectives Aims and course objectives The course familiarizes students with stylized facts on financial markets, financial institutions, financial regulation, asset prices, consumption and saving behavior of households. introduces students to data sources on the discussed topics, explains the leading theories to interpret the stylized facts, allows students to critically evaluate the assumptions underlying the theories. The course targets a general audience but will be particularly useful for students who contemplate of doing a Master in Economics. Learning goals The main learning goals are that students understand the functions of financial markets and of financial‑market institutions, are able to apply models of asset pricing and of optimal consumption/saving decisions over the life cycle, understand the main empirical puzzles in financial markets, are able to evaluate economic policies that try to regulate financial decisions. Course content This course gives an introduction to the economics of financial markets. The first part of the lecture discusses the main functions of financial markets, financial institutions and their regulation. The second part of the course introduces students to models of asset pricing and household finances. The insights from both parts of the lecture are applied to understand important aspects of financial crises. The course deals with the following topics:

Part I Financial markets and financial instruments The building blocks of the financial system: banks, the payment system and central banks. Financial markets for bonds, stocks and cryptocurrencies. Information asymmetries in financial markets. Financial crises, financial innovation and regulation. Part II Asset pricing I: the capital‑asset pricing model. Optimal consumption and savings decisions of households. Household portfolio choice of risky and riskless assets. Asset pricing II: the consumption‑based asset pricing model (CCAPM) Housing, the mortgage market and the great recession. Unsecured Credit and the Credit‑Card Debt Puzzle.

M Brown; monetary policy

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