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. ASLI YÜKSEL
Course Lecturer(s):	Assoc. Prof. ÇAĞLAR YURTSEVEN
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;
1.understand the core concepts in finance and economics
2.demonstrate knowledge and understanding of the concept of the valuation, forecasting, prediction
3.understand the role of modelling in finance and economics
4.understand the used softvare in finance and economics, R and Python

Course Content

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Introduction & Understanding the concepts in finance and economics
2)	Dynamics of the markets
3)	Introduction to Financial Modelling in R
4)	Data search in Bloomberg, Retrieve data to R.
5)	Stock Market Valuation, Prediction in Stock Returns and role of the anamolies
6)	Risk Premium and Volatility, Measuring the country risk, Financial Market Volatility, Equity Premium Puzzles, Conditional Variance Models and Risk Premium
7)	Risk Premium and Volatility, Measuring the country risk, Financial Market Volatility, Equity Premium Puzzles, Conditional Variance Models and Risk Premium
8)	The effects of scheduled and unscheduuled news in Financial and econometric models
9)	Midterm Exam
10)	Behavioral Finance
11)	Behavioral Finance
12)	Neuroeconomics and neurofinance
13)	Neuroeconomics and neurofinance
14)	High Frequency Data in Financial Markets, R

Sources

Course Notes / Textbooks:	1)Alexander. Carol. Market Models: A Guide to Financial Data Analysis. New York: John Wiley, 2003. 2.John, Hull, Options, Futures, and Other Derivatives, Pearson 3. Behavioral Finance: Understanding the Social, Cognitive, and Economic Debates, 2013 4. R Programming and Its Applications in Financial Mathematics, Shuichi Ohsaki, Jori Ruppert-Felsot, Daisuke Yoshikawa, 2017
References:

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Homework Assignments	1	% 10
Project	1	% 20
Midterms	1	% 30
Final	1	% 40
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 40
PERCENTAGE OF FINAL WORK		% 60
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	14	3	42
Application	30	2	60
Midterms	1	20	20
Final	1	30	30
Total Workload			152

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