presents the overall economic environment in which all major economic actors (households, firms, banks, investors, governments, central banks) operate,
describes the major economic forces at work,
analyses the complex interactions of the macroeconomy with financial markets, governments and central banks,
explores the incentives and dilemmas of the major actors,
uses current events in the economy and the financial markets, both domestic and international, as a vehicle to tie the course with the real world.
After completing the course, the students are expected to be able to
understand economic and financial developments,
read critically the financial press,
make economic and financial analyses that can be used for real-life decisions,
see the ‘big picture’ which will help them with the more advanced courses.
General Competences
Search for, analysis and synthesis of data and information, with the use of the necessary technology
Adapting to new situations
Decision-making
Working independently
Work in an international environment
3. Syllabus
Basic macroeconomic variables
GDP and components
External accounts of a country (current account, capital flows account, balance of payments)
Savings-Investment identity
Price indices and inflation
Inflation dynamics
Inflation and interest rates – Real interest rate
Inflation, hyperinflation, deflation
The IS/LM model
Microfoundations with emphasis on the role of the financial system
Fiscal and monetary policy
Analysis of scenarios and disturbances
The dynamics of government debt
Monetary policy
Goals, instruments and constraints
Monetary policy implementation
Monetary policy and the financial system
Nominal and real exchange rates
The capital flows account (CF)
Interest rates and exchange rates – Interest rate parity
CF determinants
The Mundell-Fleming model
Balance of payments and the domestic economy
Fiscal and monetary policies under fixed and floating exchange rates
External disturbances
Analyses with hybrid exchange-rate systems
Currency crises
Twin crises – Currency and banking
Special topics on international financial investments
4. Teaching and Learning Methods - Evaluation
Delivery
Face to face
Use of Information and Communications Technology
PowerPoint, Teams, e-Class
Teaching Methods
Activity
Semester Workload
Lectures
52
Independent Study
109,5
Tutorials
26
Course Total
187,5
Student Performance Evaluation
Written exam: 100%
Typically, the students are asked to analyse current policy and investment dilemmas.
Occasionally, they are asked to comment on a recent article from the financial press.
Bonus 10% based on class participation.
The evaluation criteria are spelled out in the syllabus.
5. Attached Bibliography
Suggested Bibliography
Banking – Management & Strategy (in Greek), Angelos A. Antzoulatos, Diplografia Publishing, 2020.
Academic articles and analyses from the ECB, the Fed, IMF, BIS…