ECONOMICS OF FINANCIAL MARKETS

ECONOMICS OF FINANCIAL MARKETS

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Code
84088
ACADEMIC YEAR
2019/2020
CREDITS
9 credits during the 2nd year of 8706 Accounting and Finance (LM-77) GENOVA
SCIENTIFIC DISCIPLINARY SECTOR
SECS-P/02
TEACHING LOCATION
GENOVA (Accounting and Finance)
semester
2° Semester
Teaching materials

OVERVIEW

Course description

The aim of the course is providing a suitable knowledge on the financial sector of the economy, with particular focus on the debate on markets effiiciency, on the transmission mechanism of moetary policy and on some recent research fields on behavioural finance.

Attendance, although not mandatory, is strongly advised.

AIMS AND CONTENT

LEARNING OUTCOMES

The course is an introduction to the economic analysis of investment decisions and financial markets.

AIMS AND LEARNING OUTCOMES

The main targets of the course are the following:

 

  • Understanding the working of financial markets
  • Understanding the effects of monetary policy on the financial markets
  • Understanding the working of financial markets in the light of Behaviural Finance and other recent alternative theoretical approaches

PREREQUISITES

Undergraduate introductory courses of Macroeconomics and Microeconomics.

Teaching methods

Lessons by the teacher. Seminars on a few specific topics.

SYLLABUS/CONTENT

Part I: The Debate on Financial Markets Efficinecy

  1. The conventional approach and its foundations.
  2. Some alternative approaches and the main objections to the orthodox models.
  3. Firm's investments and financial markets.

Part II:  Monetary Policy and Financial Markets

  1. Central Bank, inside money, outside money and payment systems.
  2. From the policy interest rate tto the markets interest rates.
  3. The Transmissiom Mechanism of Monetary Policy: the Money Channel and the Crediit Channel

Part III: Introduction to Behavioural Finance

  1. Anomalies in financial behaviour
  2. Anomalies in the discount factor
  3. Speculative bubbles
  4. Equity premium puzzle
  5. Incorporation

RECOMMENDED READING/BIBLIOGRAPHY

  • Bagliano,  F-C, Marotta, (2010) G., Economia Monetaria, seconda edizione, Bologna, Il Mulino, 2010, chapters 1 (pp.19.-31), 5 (pp. 165-188 and (198-208) 10 (pp. 309-323).  An alternative textbook in English may be comunicated to English Speaking students upon request at the beginning of the course. .
  • Forbes, W., (2009), “Behavioural Finance”, Chichester, UK, John Wiley & sons, capp. 2,3 (except section 3.2.2 and the appendix) ,5,13 (excepting sections 13.1, 13.2, 13.2.1, 13.2.2).
  • Notes edited by the teacher (that will be available AND downloadable from “AulaWeb”): “The debate on market efficiency”.
  • Notes edited by the teacher (that will be available AND downloadable from “AulaWeb”): "CAPM and APT"
  • Bernanke, B. Blinder, A. (1988), "Credit, Money and Aggregate Demand", American Economic Review, vol. 78, no. 2, Papers and Proceedings of the One-Hundredth Annual Meeting of the American Economic Association (May 1988), pp. 435-439. The students may obtain the pdf file of this paper by downloading from the terminals of the Library of the Department terminals. The students may also download from the AulaWeb site of the course, for this specific point, the lecture notes “Il canale creditizio”

TEACHERS AND EXAM BOARD

Ricevimento: The office hours will be communicated on the AulaWeb site of the course and on the AulaWeb forum of the course after the publication of the lessons timetable. The office hours only apply during the lessons periods of the Ist and 2nd Semesters. Out of the Ist and 2nd semesters the student may contact the teacher by e-mail to set an appointment

Exam Board

MARCO MAZZOLI (President)

GABRIELE CARDULLO (President)

ELENA SEGHEZZA

MAURIZIO CONTI

LUCA BELTRAMETTI

LESSONS

Teaching methods

Lessons by the teacher. Seminars on a few specific topics.

LESSONS START

II Semester

ORARI

L'orario di tutti gli insegnamenti è consultabile su EasyAcademy.

Vedi anche:

ECONOMICS OF FINANCIAL MARKETS

EXAMS

Exam description

Written Exam

Assessment methods

The final exam consosts of a written exam with open questions on the topics of the course

FURTHER INFORMATION