3.0

credits

Average Course Rating

[formerly 440.621] This course explores the role of the financial sector in the overall macroeconomy. It begins by reviewing various financial instruments and markets, with a focus on their economic function. The course then examines the challenges to monetary and fiscal policy that arise because of macro-financial linkages. Further, a number of analytical tools for assessing financial stability and vulnerabilities to macro shocks are presented. Several case studies are used to illustrate real-world situations facing policymakers. Prerequisites: 440.601 Microeconomic Theory and Policy; 440.602 Macroeconomic Theory and Policy. Corequisites: 440.606 Econometrics; 440.640 Financial Economics, or equivalent.