Courses NonDegree Display 2017-2018

Course Description To PDF
Course title Macroeconomics and Finance
Course code EBC2001
ECTS credits 6,5
Assessement None
Period
Period Start End Mon Tue Wed Thu Fri
1 4-9-2017 27-10-2017 X/E X/E
Level Introductory
Coordinator Jaap Bos
For more information: j.bos@maastrichtuniversity.nl
Language of instruction English
Goals
Finance part:
-Understand what finance theory says about how risky securities are priced in equilibrium.
-Understand the implications of the previously mentioned points for risky investment valuation.
- Understand how the optimal capital structure of a firm is determined.
-Learn about derivatives and their use as risk management tools by firms and investors.
- Learn about the valuation of derivatives.

Macro part:
-Understand the factors underlying exchange rates
-Understand the relative (in)effectiveness of monetary and budgetary policy in open economies
-Understand the conditions under which monetary union is sustainable, its advantages and drawbacks
-Understand the triggers of financial crises
Description
The 1st (finance) part deals with basic issues in finance, such as risk diversification and asset pricing, investment valuation, market efficiency, capital structure, derivatives.
The 2nd (macro) part of the course deals with models of exchange rate determination, basic macro models of aggregate supply and demand, evaluating the relative effectiveness of government policies within these frameworks, models of financial crises, theory and practical implications of optimum currency areas.
Literature
Berk & DeMarzo, Corporate Finance, Pearson, 1st ed., (2007)

Krugman, P.R. and M. Obstfeld, International Economics, Theory and Policy, 8th edition, Addison Wesly
Prerequisites
Students are expected to understand the following finance concepts: Types of securities (stocks, bonds) and their returns; Markowitz’ portfolio theory (risk-return relationships, efficient frontier, security market line), CAPM (capital market line, beta); definitions and implications of market efficiency; principles of time value of money; basic statistical concepts like mean, variance, correlation and how to calculate them.

Students are expected to master the following macro concepts: standard macro models like the IS-LM model; comparative statics on the equilibria within such models; the relative effectiveness of monetary and fiscal policies under fixed and flexible exchange rates regimes.
Teaching methods PBL / Presentation / Lecture / Assignment
Assessment methods Participation / Written Exam
Evaluation in previous academic year For the complete evaluation of this course please click "here"
This course belongs to the following programmes / specialisations
Bachelor Econometrics and Operations Research Year 2 Compulsory Courses
SBE Exchange Bachelor Bachelor Exchange Courses
SBE Exchange Master Bachelor Exchange Courses
SBE Non Degree Courses Bachelor Courses