Description

Financial markets are global; currencies for example can be traded anytime and from anywhere. In such a connect world the knowledge of financial instruments, institutions and markets is crucial. The lecture aims to give an analytic framework for the analysis of the world wide economy. We will strive to develop an overview on the role of institutions, their history and more importantly, their future. With this knowledge at hand we continue to analyze previous and current crisis.

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Requirements

As this lecture contains elements from finance (e.g. discounting, choices under uncertainty), economics (e.g. Mundell-Fleming) and mathematics (e.g. basic probability theory, algebra) a basic knowledge in each of these subjects is required. Furthermore all students will be required to work self-dependent on their gaps in knowledge once they appear.

Outline

Date	Kind
22nd October	Lecture
29nd October	Exercise 1
5th November	Lecture
12th November	Lecture
19th November	Lecture
26th November	Exercise 2 (Sheet 1, 2)
3rd December	Lecture
10th December	Lecture
17th December	Exercise 3
7th January 2013	Lecture
14th January	Lecture / Exercise 4& Meese/Rogoff(1983) Paper
21st January	Lecture / Bloomberg Register here
28th January	Lecture  / Bloomberg Register here
4th February	Repetition Lecture and Q&A
11th February	Exam, 10-12pm H12

Literature

• Brealey, Myers, Allen. Principles of Corporate Finance, McGraw-Hill, 2005.
• Fabozzi, Modigliani, Jones, Ferri. Foundations of Financial Markets and Institutions, Prentice Hall, 2002.
• Krugman, Obstfeld. International Economics: Theory and Practice, Addison Wesley, 2008.
• Shiller. Irrational Exuberance, 2nd edition. New York: Doubleday, 2006.
• Siegel, Stocks for the Long Run, 4th edition, New York: McGraw-Hill, 2008.