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 |
ECO3512 | Financial Economics | Fall Spring |
3 | 0 | 3 | 6 |
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester. |
Language of instruction: | English |
Type of course: | Departmental Elective |
Course Level: | Bachelor’s Degree (First Cycle) |
Mode of Delivery: | Hybrid |
Course Coordinator : | Dr. Öğr. Üyesi AYSE ERTUĞRUL BAYKAN |
Recommended Optional Program Components: | None |
Course Objectives: | This course aims to familiarize the students with the analysis of exchange rates, to provide theoretical background and to establish the understanding of how exchange rate determination is in relation with other key internationsl macroeconomic variables. |
The students who have succeeded in this course; 1. Can interpret global macroeconomic changes 2. Have detailed information about exchange rates and foreign exchange market 3. Understand the role of exchange rate regimes in global macroeconomic dynamics 4. Recognize the interaction between financial markets and exchange rate regime 5. Know the differences between national accounts and balance of payments 6. Learn about the critical role of financial globalization |
Students taking this course learn the definitions and the different regimes of exchange rates, the dynamics that determine exchange rates in the short and long term, within the framework of theoretical models, and see the relationship of the balance of payments with national accounts. In addition to midterm and an oral exams, students prepare a final project in which they use related concepts. |
Week | Subject | Related Preparation |
1) | Introductory Lecture The Global Macroeconomy (Ch1) Data Analysis | Ch 1 (Feenstra & Taylor) |
2) | Introduction to Exchange Rates and the Foreign Exchange Market: Arbitrage and Spot Market | Ch 2 (Feenstra & Taylor) |
3) | Introduction to Exchange Rates and the Foreign Exchange Market: Arbitrage and Spot Market | Ch 2 (Feenstra & Taylor) |
4) | Exchange Rates I: The Monetary Approach in the Long-Run | Ch 3 (Feenstra & Taylor) |
5) | Exchange Rates I: The Monetary Approach in the Long-Run | Ch 3 (Feenstra & Taylor) |
6) | Exchange Rates II: The Asset Approach in the Short-Run | Ch 4 (Feenstra & Taylor) |
7) | Exchange Rates II: The Asset Approach in the Short-Run | Ch 4 (Feenstra & Taylor) |
8) | National and International Accounts: Income, Wealth and the Balance of Payments | Ch 5 (Feenstra & Taylor) |
9) | Midterm | |
10) | National and International Accounts: Income, Wealth and the Balance of Payments | Ch 5 (Feenstra & Taylor) |
11) | Presentations | |
12) | Presentations | |
13) | Presentations | |
14) | Presentations |
Course Notes / Textbooks: | Feenstra, R.C., and A.M. Taylor (2021), International Macroeconomics, Macmillan, Fifth Edition. |
References: | 1) NPR Planet Money: popular Economics Podcast on wide ranging topics. Very useful as a starting point on specific topics. The latest episodes are online available at http://itunes.apple.com/us/podcast/npr-planet-moneypodcast/id290783428 2) The Economist: popular weekly economics magazine with in-depth reporting on current events. 3) The Hutchins Center on Fiscal and Monetary Policy (https://www.brookings.edu/center/the-hutchins-center-on-fiscaland-monetary-policy) 4) VoxEU: Research based policy analysis platform by leading economists (www.voxeu.com) 5) Project Syndicate (https://www.project-syndicate.org/) |
Semester Requirements | Number of Activities | Level of Contribution |
Homework Assignments | 1 | % 20 |
Midterms | 1 | % 40 |
Final | 1 | % 40 |
Total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 60 | |
PERCENTAGE OF FINAL WORK | % 40 | |
Total | % 100 |
Activities | Number of Activities | Duration (Hours) | Workload |
Course Hours | 16 | 3 | 48 |
Study Hours Out of Class | 12 | 5 | 60 |
Quizzes | 12 | 1 | 12 |
Midterms | 1 | 14 | 14 |
Final | 1 | 18 | 18 |
Total Workload | 152 |
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. | 5 |
3) | Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events. | 1 |
4) | Analyze the interventions of politics to the economics and vice versa. | 1 |
5) | Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches. | 3 |
6) | Understand current and new economic events and how the new approaches to the economics are formed and evaluating. | 4 |
7) | Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form. | 4 |
8) | Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence. | 1 |
9) | Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments. | 4 |
10) | Understand the information and changes related to the economy by using a foreign language and communicate with colleagues. | 3 |