Financial Markets & the Economy
ECTS : 3
Description du contenu de l'enseignement :
The objective of this course is to describe the strong interactions between financial markets and the economy:
- from the economy towards markets, by reviewing how economic newsflow affects the fundamental valuation of different assets classes,
- from markets towards the economy, by presenting the predominant role played by financial markets and financial institutions in the economy (crises, raw materials price movements,.)
The course will be organized around different themes prevalent in the current financial and economic environment considered as helpful to illustrate fundamental financial and economic principles. Particular attention will be drawn on the links between finance and economic policies, as fiscal policy, monetary policy and finance regulation.
The course will go through the following themes:
. Session I - Reminder of key macroeconomic analysis tools (1.5h – Alain)
· Session II - Global imbalances and financial implications (including portfolio allocation) (1.5h – Alain)
· Session III - Interaction between finance, fiscal and monetary policies with a specific focus on the US (2h – Alain)
· Session IV- Interaction between finance, fiscal and monetary policies with a specific focus on the Eurozone (2h – Alain)
· Session IV- Between Theory and Evidence: Case studies illustrating the application of tools in previous sessions (2h - Alain)
· Session V – Economic developments in emerging markets (3h – Constance)
· Session VI – Implications of key financial crises in emerging markets and application through case studies (3h – Constance)
· Session VII – Evolution of the financial regulation through crises (3h – Simon)
· Session VIII – Implication for the banking sector and case studies (3h – Simon)Compétence à acquérir :
Master financial en economics environement as well as the interactions between financial markets and the economy
Mode de contrôle des connaissances :
Bibliographie, lectures recommandées :
Frederic S. Mishkin « Economics of Money, Banking, and Financial Markets »
Carmen M. Reinhart & Kenneth S. Rogoff « This Time Is Different: Eight Centuries of Financial Folly »