Monetary and Financial Economics (2 º Sem 2017/2018)

Financial system
-Financing flows in the economy;
-Financial markets;
-Financial intermediaries;
-Financial instruments.

Money
-Concepts of money;
-Functions of money;
-Payment systems;
-Measuring money.

Risk
-Actual value and future value;
-Financial risk;
-Types of risk;
-Strategies to reduce financial risk.

Portfolio theory
-Return and risk of a financial asset;
-Return and risk of a portfolio;
-Efficient frontier;
-Money as a financial asset ? Tobin?s separation theorem.

Bond market and interest rates
-Measures of interest rates;
-Determinants of assets? demand;
-Structure of interest rates.

Stock market
-The price of a stock
-Efficient financial markets theory

Derivatives markets
-Definitions
-Forwards
-Futures
-Options
-Swaps.

Exchange rate market
-Exchange rates;
-Long-term exchange rate determination;
-Short-term exchange rate determination.

Financial intermediation economics
-Functions of financial intermediaries;
-Transaction costs, asymmetric information.

Banks and financial innovation
-Banks;
-Financial innovation.

Financial crisis
-Types of financial crisis;
-The 2007-2009 financial crisis.

Money demand
-Quantitative theory of money;
-Keynesian theory of preference for liquidity;
-Neo-keynesian theories of money demand;
-Friedman and the new quantitative theory.

Money supply
-Determinants of money supply
-Money supply in the euro area
-Monetary aggregates and counterparties.

Monetary policy
-Objectives and instruments of monetary policy;
-Monetary policy transmission mechanisms ;
-Single monetary policy.