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- Code:
- 26035
- Field:
- Macroeconomics
- Targets:
- Master’s students Research Master's students
- Organiser:
- Hanken Shool of Economics
- Instructor:
- Mikael Juselius and Rune Stenbacka
- Period:
- Period 1
- Format:
- Lecture
- Method:
- Contact teaching
- Venue:
- Hanken
- Enrollment:
In case of conflicting information consider the Sisu/Moodle pages the primary source of information.
Aalto and UH economics students can enroll in their home university’s SISU! Further instructions can be found on the How to enroll? page, also for other students.
Before taking and completing the course make sure that the credits can be counted towards your degree at your home university by checking which courses are included in your curriculum or by contacting your home university’s student/learning services.
- A Moodle course key will be sent by email (to your Hanken email address) or it is posted as a message in Sisu couple of days before the course starts.
- Log in with your Hanken username to be able to use all the features of the course workspace.
- More tips for enrolling in Moodle can be found here.
Content
This course has two parts. The first part deals with microeconomics of financial intermediation. It emphasizes the role of asymmetric information in credit markets. It explores the central theories of financial intermediation and regulation thereof. The second part concentrates on the transmission of monetary policy through the banking system. It first discusses the objectives of monetary and macroprudential policy in the presence of both nominal and financial frictions. It then introduces tools available to central banks and regulatory authorities for achieving these objectives such as the conventional policy rate, quantitative easing and capital requirements.
The course will focus on the following issues: adverse selection and moral hazard in credit markets, implications of asymmetric information in banking markets, relationship lending and bank monitoring, screening and the use of collateral in bank lending, bank competition and financial stability, bank runs, deposit insurance and systemic risk, securitization and the subprime crisis, the regulation of banks, nominal financial and monetary policy, the transmission of conventional monetary policy through the banking system, unconventional monetary policy, quantitative easing and forward guidance, financial frictions and macroprudential policy, bank capital regulation.
Learning outcomes
After completing the course, you will be able to:
- assess the implications of asymmetric information for credit market efficiency
- analyze and propose solutions to problems caused by informational asymmetry in credit markets
- assess the role of banks in an economy and their vulnerability to crises
- assess the goals and limitations of bank regulation
- analyze the topical issues related to financial intermediaries and their regulation
- participate in the debates concerning financial crisis and bank regulation analytically
- illustrate the roles of monetary and macroprudential policy
- assess the effects of key policy tools and their limitations