Ing Ind - Inf (Mag.)(ord. 270) - BV (479) MANAGEMENT ENGINEERING - INGEGNERIA GESTIONALE
098472 - FINANCIAL MARKETS AND INSTITUTIONS + MACROECONOMICS OF FINANCE
The overall course aims at discussing financial markets, in terms of participants (e.g. banks and market players), organization of the markets, institutions (e.g. Central banks) and policies and the effect of financial choices on the real economy activity. It also provides students with models to understand how (and why) money and financial variables matter from a macroeconomic perspective. The importance of credit and financial market imperfections for the conduct of monetary policy and for real economic activity will be stressed. At the end of the course the student should be able to understand macroeconomic stabilization policies, the main monetary policy operating procedures, the role of financial intermediation and the effects of financial fragility on the economic system.
The course fits into the overall program curriculum pursuing some of the defined general learning goals. In particular, the course contributes to the development of the following capabilities:
Understand context, functions, processes in a business and financial environment and the impact of those factors on business performance
Identify trends, technologies and key methodologies in a specific domain (specialization streams)
Design solutions applying a scientific and engineering approach (Analysis, Learning, Reasoning, and Modeling capability deriving from a solid and rigorous multidisciplinary background) to face problems and opportunities in a business and industrial environment
Risultati di apprendimento attesi
- understands the financial system and the financial intermediaries (e.g. banks, investment funds, ...
- identifies main figures and trends related to the financial markets and the banking system
- develops knowledge in terms of the role of the digital innovation inside banking and financial systems
- understands the financial/monetary context and knows how the different transmission mechanisms of financail/monetary shocks to the real economy operate;
- knows which are the implications and the possible evolving trends of imperfections in credit markets on firms' borrowing possibilities and, in general, on the macroeconomic outcomes;
- knows how to design new economic scenarios and/or the effects of monetary policies on economic agents' behavior by simplyfing and proper modeling the economic context;
- can identify the effetcs of financial fragility on the economic system.
The overall course aims at discussing financial markets, in terms of participants, organization, institutions and policies and the effect of financial choices on the real economy activity.
Overview - Financial Markets and Institutions
The course focuses on financial markets and institutions. In particular, it concentrates on the features, the objectives, the role and the typologies of financial markets, securities and intermediaries. Some lectures will provide insights about the banks P&L, their supervision and regulation and the Banking Union. The course will conclude with some details on corporate governance and the takeover market.
In detail, the lectures of the course will be about:
Introduction to the financial system
Flow of funds in the economic system
Bank monetary function
The theory of financial intermediation
Financial markets: an overview and regulation
Securities: bonds, equity, derivatives, forex
Securities markets (bonds, equity, derivatives), the Stock market
The market players
Banks P&L, economic and financial equilibrium, asset liability management
Bank supervision, prudential regulation and the Banking Union
Classification of risks in banking. RAF and ICAAP
Corporate governance.Takeover regulation
Introduction to the asset management
Overview - Macroeconomics of Finance
The aim of the course is to stress the importance and the effects of financial choices and of monetary policy decisions on real economic activity. After introducing some basics macroeconomic concepts, useful to understand the real effects of economic policies and the functioning of monetary policy, we study credit market imperfections and how they can cause financial fragility phenomena that can lead to financial and real crises.
Block 1. Basic macroeconomic concepts (neo-classical model, IS-LM model, the liquidity trap, the AD-AS model, the Phillips curve, the yield curve);
Block 2. Monetary policy operating procedures (the money multiplier, the central bank balance sheet, the ECB's monetary policy corridor, the Taylor rule, inflation targeting, post-crisis non conventional policies);
Block 3. Asymmetric information and financial intermediation; credit market imperfections and their effects on economic activity (from Modigliani-Miller to the financial hierarchy; credit rationing: Stiglitz e Weiss (1981), bank runs and financial panics: Diamond e Dybvig (1984), delegated monitoring: Diamond (1984));
Block 4. Financial fragility and monetary policy transmission mechanisms to real activity (the traditional interest rate channel (money view), asymmetric information effects and the credit channel (credit view): lending view (Bernanke and Blinder (1988)) and the financial accelerator).
For the Macroeconimcs of finance part, students should know funamentals of microeconomics and macroeconomics theory. Whenever those were not acquired previously, the MOOC "Economics" should be followed and succesfully completed.
Modalità di valutazione
The course will include traditional lectures and practice session.
The final evaluation will be based on a final individual written test. The test includes:
for the FMI part, questions and exercises
for the MOF part, two questions on the first part (Blocks 1 and 2) and two questions on the second part (Blocks 3 and 4). In order to pass the exam the student must obtain a sufficient mark both in the first and in the second part.
The final test will be based both on numerical and qualitative questions in order to assess if the student:
- knows how to solve an economic problem and how to measure the effects of monetary and fiscal shocks on the economic equilibrium;
- is able to identify different trends in the main economic variables as agents' expectations change;
- knows how the central bank takes and implements monetary policy decisions both in standard and non-standard times;
- can discuss critically a newspaper article on the topics covered in the course adapting the adequate theoetical model to the practical problem at hand.
Financial Markets and Institutions, Editore: McGraw Hill, Anno edizione: 2015, ISBN: 9781308633947 Note:
For FMI part. The textbook has been created for this course. It will be available in the libraries near Bovisa campus
Varian, Hal R., Microeconomia, Editore: Cafoscarina Note:
For Macro part
Frank R.H., Microeconomia, Editore: Editore: Mc-Graw-Hill Note:
For Macro part. Note: Per i punti 1-9 (in alternativa al testo di Varian)
La tavola delle transazioni e la contabilità nazionale Note:
For Macro part. Note: Per il punto 10, materiale didattico disponibile su Corsi On Line
Dornbusch, R., Fischer, S. e Startz, R.,, Macroeconomia, Editore: Editore: Il Mulino, Bologna Note:
For Macro part. Note: Per i punti 11-16.
Delli Gatti D., M. Gallegati e M. Gallegati,, Macroeconomia, Editore: Editore: Giappichelli, Torino Note:
For Macro part. Note:Per i punti 11-16. (in alternativa al testo di Dornbusch, Fischer, Startz).
Dornbusch R, S. Fischer e R. Startz,, Macroeconomia, Editore: Editore: McGraw-Hill, Milano Note:
For Macro part. Note: Per i punti 11-16 (in alternativa al testo di Dornbusch, Fischer, Startz).
Tipo Forma Didattica
Ore di attività svolte in aula
Ore di studio autonome
Laboratorio Di Progetto
Informazioni in lingua inglese a supporto dell'internazionalizzazione
Insegnamento erogato in lingua
Disponibilità di materiale didattico/slides in lingua inglese
Disponibilità di libri di testo/bibliografia in lingua inglese
Possibilità di sostenere l'esame in lingua inglese
Disponibilità di supporto didattico in lingua inglese