Financial Institutions and Markets (ECON 350)

2020 Spring
Faculty of Arts and Social Sciences
Economics(ECON)
3
6
Ahmet Burak Emel ahmet.emel@sabanciuniv.edu,
Click here to view.
English
Undergraduate
ECON201 ECON204
Click here to view.

CONTENT

Money and interest rates; portfolio choice, behavior of interest rates and risk; foreign exchange market; financial institutions, banking industry; central bank and monetary policy; money supply process; determinants of money supply and tools of monetary policy; international financial system; monetary policy in open economies; demand for money; money and inflation.

OBJECTIVE

The course discusses financial institutions and markets and the services they provide to non-financialsectors. Financial institutions and markets not only provide liquidity, i.e. money, but also provide other services like facilitating risk management, screening and monitoring. To a large extent these services are not provided by markets but by institutions, namely banks.

LEARNING OUTCOMES

  • On completion of the course, students are expected to: -Understand the working of the Financial System -Explain why Indirect Finance is more widely-used compared to Direct Finance -Classify Financial Markets in terms of various aspects -Be able to state a rational Discount Rate expectation -Make basic mathematical computations regarding Interest Rates and Financial Instruments -Classify Financial Institutions -Explain why Banks are unique among all financial institutions -Analyze a Bank Balance Sheet on multi-dimensional basis -Explain the content of Basel I-II-III -Analyze Balance of Payments Statistics -Have an idea about the contemporary magnitudes of the Turkish Financial System

PROGRAMME OUTCOMES


1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 5

2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 5

3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects; have the ability to continue to educate him/herself. 4

4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 4

5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 4


1. Develop knowledge of theories, concepts, and research methods in humanities and social sciences. 5

2. Assess how global, national and regional developments affect society. 5

3. Know how to access and evaluate data from various sources of information. 5


1. Have an understanding of economics and main functional areas of management

2. Have a basic all-around knowledge in humanities, science, mathematics, and literature

3. Have a basic knowledge of law and ethics, awareness of social and ethical responsibilities

4. Work effectively in teams and environments characterized by people of diverse educational, social and cultural backgrounds

5. Demonstrate proficiency in oral and written communications in English

6. Pursue open minded inquiry and appreciate the importance of research as an input into management practice; thus, a.know how to access, interpret and analyze data and information by using current technologies b.use the results from analyses to make informed decisions

7. Use office softwares for written communication, presentation, and data analysis

8. Demonstrate awareness that business settings present different opportunities and challenges for managers due to environmental/contextual differences that arise in economic, political, cultural, legal-regulatory domains


1. Provide constructive analysis of economic phenomena at the national and international level, and interactions between the two. 5

2. Develop an understanding of organizations and institutions in the society as well as their influence on the economy. 5

3. Recognize how incentives shape the behavior of individuals and organizations. 5

4. Identify "economic" problems and propose alternative models and/or design and conduct research to provide viable solutions using theoretical tools and/or quantitative methods. 5

5. Communicate problems and solutions to managerial and policy decision-making units as well as to lay audiences. 4

RECOMENDED or REQUIRED READINGS

Readings

Textbook:
Howells, P. Bain, K. 2002. the economics of Money, Banking and Finance. A European Text. Second Edition. Prentice Hall.

Reading Packet:
Mishkin, Frederick, 2001. The Economics of Money, Banking and Financial Markets. Sixth Edition. Addison Wesley. Chapter 8.
Hiller, Brian. 1997. the Economics of Asymmetric Information. St. Martin's Press. Chapter 1. (Asymmetric Information in the Market for Investment Finance) and Chapter 2 (Investment Finance and the Selection Problem).
Allen, F. Gale, 2000. Institutions and Markets. Chapter 3 of Allen F. Gale. 2000. Comparing Financcial Systems. Cambridge, MA: MIT Press.
Agenor, Pierre-Richard, The Economics of Adjustment and Growth. Academic press. Chapter 2.
Ozatay, F. Sak, G. 2002. Financial Liberalization in Turkey. Why was the Impact on Growth Limited? Emerging Markets Finance and Trade 38, 5: 6-22.
BY Balkan E., Yeldan, E. 1998. 'Financial Liberalization in the Developing Countries: the Turkish Experience'. in J. Fanelli and R. Medhore (ed.s) Financial Reform in Developing Countries, Houndmills, UK: McMillan Press. 1998