CAPITAL MARKETS AND FINANCE (ENGLISH, NON-THESIS)
Master TR-NQF-HE: Level 7 QF-EHEA: Second Cycle EQF-LLL: Level 7

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
ECO5105 Open Economy Macroeconomics Spring 3 0 3 8
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction: English
Type of course: Departmental Elective
Course Level:
Mode of Delivery: E-Learning
Course Coordinator : HANDE SAĞLAM
Course Lecturer(s): Assoc. Prof. KAAN İRFAN ÖĞÜT
Recommended Optional Program Components: None
Course Objectives: This course aims to extend students’ knowledge in macroeconomics and to develop their analysis skills and teach them how to use these concepts in advanced studies in macroeconomics.

Learning Outcomes

The students who have succeeded in this course;
I. Students will be able to construct dynamic economic models
II. Students will be able to define economic relationships in the framework of dynamic models
III. Students will be able to understand some advanced topics in macroeconomics like, inflation targeting, Taylor’s Rule, liquidity trap which are related with current economic events.
IV. Students will be able to analyze policy effects on economic variables
V. Students will be able to understand and interpret current macroeconomic events.

Course Content

The Brief Story of Macroeconomics
Open Economy with Flexible and Managed Exchange Rate Regimes
Inflation Targeting and Taylor’s Rule
Mundell Fleming Model : Graph Analysis
Fiscal Policy and Debt Dynamics
Financial Markets in Macroeconomic Models

Weekly Detailed Course Contents

Week Subject Related Preparation
1) From Closed Economy to Open Economy
2) Exchange Rate Determination and Exchange Rate Regimes (flexible, fixed and managed floating)
3) Mundell - Fleming Model
4) Phillips Curve and Exchange Rate Pass Through Effect
5) Inflation Targeting and Taylor Rule in Open Economy
6) Endogenous Money Supply and Credit Money
7) Tobin Q and Asset Prices
8) Consumption, Investment and Wealth Effect
9) The transmission of monetary policy
10) Fiscal Policy and Debt Dynamics
11) Twin Deficit in a Mundell – Fleming – Tobin Framework
12) Global Excess Liquidity and Liquidity Trap
13) Presentation
14) Presentation
15) Final Exam

Sources

Course Notes / Textbooks: Rodseth, A., Open Economy Macroeconomics, Cambridge University Press, 2000
References: Glenn P. Hubbard , Anthony P. O'Brien, '' Macroeconomics '' (5th Edition) , 2014

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Total %
PERCENTAGE OF SEMESTER WORK % 0
PERCENTAGE OF FINAL WORK %
Total %

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 14 3 42
Study Hours Out of Class 14 6 84
Project 12 4 48
Homework Assignments 12 2 24
Midterms 1 0 0
Final 1 2 2
Total Workload 200

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Identify complex problems and arguments and analyze those using the theoretical tools and quantitative methods of economics and finance. 2
2) Provides a strong conceptual understanding of finance, combined with an understanding of the workings of financial markets and institutions. 3
3) The program ensures an understanding of relationship between financial theory and its practices. 5