| ECONOMICS AND FINANCE | |||||
| Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 | ||
| Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
| ECF4444 | Macrofinance | Spring | 3 | 0 | 3 | 6 |
| Language of instruction: | English |
| Type of course: | Must Course |
| 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. |
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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 |
| 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. |
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| 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. |
| 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 | |
| No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
| Program Outcomes | Level of Contribution | |
| 1) | Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works. | 4 |
| 2) | Understand the common as well as distinctive characters of the markets, industries, market regulations and policies. | 4 |
| 3) | Developing the ability to explain global economic events by understanding different economic perspectives. | 4 |
| 4) | Acquiring the ability to analyze the impact of politics on the economy and vice versa. | 3 |
| 5) | Gaining the competence to propose solutions to economic problems and evaluate opposing policy recommendations. | 4 |
| 6) | Understanding and evaluating new economic developments and approaches. | 5 |
| 7) | Developing the ability to convey economic news and developments through written, oral, and graphical communication. | 4 |
| 8) | Gaining the competence to develop structured solutions for economic issues. | 5 |
| 9) | Acquiring the capability to present findings that support economic assumptions using numerical and verbal skills. | 5 |
| 10) | Gaining the competence to follow economic information and communicate with colleagues using a foreign language. | 4 |