SFB13102 Global Markets and Institutions (Autumn 2012)

The course should give students basic knowledge of how the financial markets function, and how institutions cope with and respond to financial market development in various financial systems

• Overview of the financial system
• Understanding financial markets - the money markets, bond market, FOREX
• Financial institutions: the banking sector and non-banking sector
• Why and how the financial system is regulated and controlled
• The financial crisis and its consequences in a global economy
• Ethics in finance

Knowledge outcomes:

The students acquire knowledge on how the modern financial system is designed, what is the structure and function of the system and how financial markets and financial institutions work together. Students should get insight in different segments of the financial markets and their complexity and get understanding for necessity for centralized regulation and control. They should also develop analytical thinking and ethical judgments by studying recent financial crises causes and their outcomes.

Skills:

The students should be able to construct and explain models, make calculation of interest rates, profits, present and future value of financial investments and other simple exercises. They should improve their skills for information searching and ability to select and evaluate its relevance and quality.

General competence:

Get better insight into a complex ground of finance and better understanding of the international financial system. Reflect on ethical dilemmas of quick and big money turnover for societies and social groups.

Teaching and learning is based on lectures and group work.

• Scheduled compulsory tutorials and classes, apart from self-initiated group work.
• Obligatory exercises and group presentations.
• Paper version of presentation, improved after class discussion and teacher's comments, must be approved by the teacher and submitted at the reception within the deadline.
• Students must get approved hand-ins to be allowed to take the final examination.

The course requirements must be approved before signing up for the final examination.

A 4-hour individual written examination.
Aids permitted: a mother tongue-English/English-mother tongue dictionary. Grades: A-F.

The students have the right to complain on the grades given on the written examination.

If a student gets F, the re-sit exam might be arranged in June, in case three students sign up for the re-sit. If less than three apply for re-sit, the next exam will be a regular exam next Autumn. Students must be aware of that content, requirements and textbook may have changed, and it is a student's responsibility to check it and get updated. Students have to sign up for the exam within the deadline.

To improve the course, we need the evaluations from the students. The course is evaluated by the students in the middle of the semester and in the end of the semester.

The evaluations from the students are treated by the staff and the comitee for programme quality and internationalization.

The readinglist was last updated 16 June 2012.

Mishkin, Frederic S: The Economics of Money, Banking, and Financial Markets, Business School Edition, 3rd ed. Pearson 2013, ISBN 978-0-13-304793-6

Supplementary text books:
¿ Valdez, Stephen & Molyneux Philip (2010) An Introduction to Global Financial Markets, Palgrave Macmillan, 501 p.

¿ Mishkin, Frederic S, Eakins, Stanley G (2011). Financial Markets & Institutions, 7th ed., Boston: Pearson Prentice Hall.

¿ Howells, Peter & Keith Bain (2007). Financial Markets and Institutions. 5th ed. FT and Prentice Hall
¿ Howells, Peter & Keith Bain (2008). The Economics of Money, Banking and Finance. 3rd ed. FT Prentice Hall. 602 p.
¿ Hubbard, R Glenn (2007). Money, the Financial System and the Economy. 6th ed. Boston: Pearson/Addison-Wesley.