Course content

The course offers an introduction to basic equality modeling for the financial markets. The models attempt to explain prices on different types of financial assets related to fundamental macroeconomic variables (like consumption and production). It provides a tool to understand how financial markets react to changes in relevant macroeconomic variables. The course also discuss empirical results, conventionalized facts and “puzzles” that are unveiled in such facts. The last part of the course deals with portfolio decisions for long term investors.

Learning outcome

To provide the students with knowledge of how the financial market relates to other aspects of the economy, as well as the strengths and weaknesses of various models within the field

Learning methods and activities

2 hours of lectures every week. One compulsory term paper. The course can be taught in English if requested and as by the Department’s evaluation.

Compulsory assignments

• One approved term paper

Recommended previous knowledge

Compulsory courses in Master’s degree in Finance Economics.

Required previous knowledge

None