Macro Economics and Financial Markets

ECO2011

The financial crisis has clearly shown how the economy is influenced by events in financial markets. Banking and financial industrys behaviour and credit operations are by many singled out as an explanation of the financial crisis. In this course we study in more detail how activities in financial markets - including the money market, the foreign exchange market, the bond market, the equity market and the markets for derivatives - affect macroeconomic variables such as employment, interest rates and business-cycle movements. We study how the structure of public and private debt can throw a nation into significant macro-economic problems. We will also examine how central bank behaviour through monetary policy and regulation affects conditions in the financial markets and especially the pricing of various financial instruments.

The course is only open to students on the bachelor's programme in business administration.

Upon successful completion of the course the candidate should:

Have gained a deeper understanding of how financial markets work.
Have gained an understanding of how the different financial instruments are priced,
Have gained an understanding of how the trade-off between risk and return manage behaviour in these markets
Understand how the authorities through the central bank's monetary policy and financial markets regulations affect the risk and return in these markets
Be able to explain how activity in these markets affects macroeconomic variables such as interest rates, exchange rates and employment. And why the authorities are so concerned with stable and well- functioning financial markets. Will specifically look at how the crises in financial markets can start and reinforce business-cycles problems.

Paid semester fee and syllabus literature. It is also required that students have a laptop at their disposal.

Profile, elective

Lectures, assignments, seminars

The study programme is evaluated annually by students by way of course evaluation studies. These evaluations are included in the university's quality assurance system.

Bilingual dictionary and simple calculator. Generating an answer using ChatGPT or similar artificial intelligence and submitting it wholly or partially as one's own answer is considered cheating.

None

Subject language

Norwegian

Credits

7.5

Study location

Bodø

Responsible faculty

Nord University Business School

Course coordinator

Associate Professor

Hassa Pedersen

hassa.pedersen@nord.no