The seminar introduces students to the theory, structure and evolution of financial markets with special emphasis on the financial system of the U.S. In the light of the current events it aims to ... read more
The seminar introduces students to the theory, structure and evolution of financial markets with special emphasis on the financial system of the U.S. In the light of the current events it aims to provide a toolkit for further analysis and reflection on the role and functioning of financial intermediaries and markets.
In the first part of the course we lay out a basic analytical fundament on the rational of finance and investment decisions. This includes an overview of the financial system. It gives an introduction to the theory of interest and investment decision, portfolio theory and asset pricing.
The second part focuses on the evolution of financial markets in the U.S. and the role of financial intermediaries during the 20th. It further aims to analyse the boom and bust cycles of Wall Street, also taking a look at the causes and effects of the current financial crisis.
With the analytical background of part one, we try to ascertain, whether the theoretical analysis on investment decisions is a useful guide to explain market outcomes and prevailing asset prices.
A solid mathematical and statistical A-level background is sufficient for survival. A detailed schedule and a list of required reading will be provided via Blackboard. Coursework includes a presentation, three problem sets to be turned in for grading and a final exam (60 min). Information and enrolment management is conducted via Blackboard.
For further information please refer to our website: www.jfki.fu-berlin.de/faculty/economics close