ECONOMICS
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
ECF4444	Macrofinance	Fall	3	0	3	6

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:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Face to face
Course Coordinator :	Prof. Dr. İBRAHİM ÜNALMIŞ
Course Lecturer(s):	Prof. Dr. İBRAHİM ÜNALMIŞ
Recommended Optional Program Components:	None
Course Objectives:	This course provides a theoretical framework to analyze macro-finance market behavior. To highlight the features of each market, the entire financial system is structured into four markets: money, bond, stock, and foreign exchange. The domestic markets are linked through Fisher equation, term structure of interest rates, and CAPM. International markets are linked through various international parity conditions. Economic fundamentals provide the rationale for determination of asset prices (returns). Recent studies in behavioral models also shed some lights on the pricing process. In addition to theoretical expositions, many empirical issues and evidence will be discussed in this lecture.

Learning Outcomes

The students who have succeeded in this course;
- Describing financial markets and institutions
- Understanding risk
- Evaluating tools to manage risks in financial markets
- Describing role of human behaviour in finance
- Differentiating between theoretical valuation models
- Explaning big data concept

Course Content

This course is designed to examine the relationship between financial markets and macroeconomics. The course firstly will introduce the structural elements of sub-markets such as bond, stock and foreign exchange markets, which are positioned under financial markets, and will study the mechanisms of instruments in these financial markets. The relationships between indicators of these instruments and macroeconomic measurements such as inflation and growth are among the topics of the course. The teaching methods of the course are case study, project, educational game, lecture, reading, discussion, and problem solving.

Weekly Detailed Course Contents

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Sources

Course Notes / Textbooks:

Frederic Mishkin, Economics of Money, Banking, and Financial Markets, 13th edition

References:

• Cuthbertson, Keith and Dirk Nitzche (CN). Quantitative Financial Economics. New York: John Wiley
• Paul Wilmott, Introduction to Quantitative Finance, Second Edition, New York: John Wiley
• Chris Brooks, Introductory Financial Econometrics
• Essentials of Investments, Zvi Bodie (Boston University), Alex Kane (University of California), Alan J. Marcus (Boston Collage), 10th Edition, 2014.
• Alexander. Carol. Market Models: A Guide to Financial Data Analysis. New York: John Wiley, 2003.

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Project	1	% 30
Midterms	1	% 30
Final	1	% 40
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 30
PERCENTAGE OF FINAL WORK		% 70
Total		% 100

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)	As a world citizen, she is aware of global economic, political, social and ecological developments and trends.	3
2)	He/she is equipped to closely follow the technological progress required by global and local dynamics and to continue learning.	4
3)	Absorbs basic economic principles and analysis methods and uses them to evaluate daily events.	3
4)	Uses quantitative and statistical tools to identify economic problems, analyze them, and share their findings with relevant stakeholders.	4
5)	Understands the decision-making stages of economic units under existing constraints and incentives, examines the interactions and possible future effects of these decisions.	5
6)	Comprehends new ways of doing business using digital technologies. and new market structures.	4
7)	Takes critical approach to economic and social problems and develops analytical solutions.	3
8)	Has the necessary mathematical equipment to produce analytical solutions and use quantitative research methods.	3
9)	In the works he/she contributes, observes individual and social welfare together and with an ethical perspective.	1
10)	Deals with economic problems with an interdisciplinary approach and seeks solutions by making use of different disciplines.	2
11)	Generates original and innovative ideas in the works she/he contributes as part of a team.	2