ITF 430 | Course Introduction and Application Information - Department of International Trade and Finance

Course Name

Financial Macroeconomics

Code	Semester	Theory (hour/week)	Application/Lab (hour/week)	Local Credits	ECTS
ITF 430	Fall/Spring	3	0	3	6

Prerequisites	None
Course Language	English
Course Type	Elective
Course Level	First Cycle
Mode of Delivery	Online
Teaching Methods and Techniques of the Course	Discussion Case Study Q&A Critical feedback Lecture / Presentation
National Occupation Classification	-
Course Coordinator	Profesör Dr. C Coşkun KÜÇÜKÖZMEN
Course Lecturer(s)	Prof. Dr. C Coşkun KÜÇÜKÖZMEN
Assistant(s)	Arş.Gör. MERT SAĞSÖZ

Course Objectives	The primary objective of the course is to examine the role that the financial markets and financial institutions play in modern macroeconomics, particularly focusing on the causes of recessions and depressions. The course discusses both the empirical and theoretical links between financial system and economic performance as well as case studies of the role of finance in specific business cycles episodes.
Learning Outcomes	The students who succeeded in this course; Describe the structure, functions, and basic operations of financial markets and institutions in the macroeconomic context. Explain the historical development of financial systems and their role in economic growth and stability. Describe business cycles and discuss early macroeconomic theories of finance. Compare and evaluate Keynesian, Monetarist, Neoclassical, and New Institutional perspectives on financial systems. Explain models of risk, credit intermediation, and credit rationing within macro-financial frameworks. Analyze the relationship between financial systems and monetary or stabilization policy. Discuss the nature and causes of banking crises, asset bubbles, and international financial crises.
Course Description	The content of the course is to examine the role that the financial markets and financial institutions play in modern macroeconomics, particularly focusing on the causes of recessions and depressions.
Related Sustainable Development Goals

Course Category	Core Courses
	Major Area Courses	X
	Supportive Courses
	Media and Management Skills Courses
	Transferable Skill Courses

Week	Subjects	Related Preparation
1	Introduction: What is Financial Macroeconomics?	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 chapter 1-2
2	Money, Credit and Financial Institutions	Cecchetti, S. and Schoenholtz, K., 2024 Release, Money, Banking and Financial Markets.
3	Business Cycles vs. Financial Cycles	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 chapter 3
4	Keynes, Friedman, Minsky and the Financial Instability Hypothesis	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 chapter 4
5	Leverage, Balance Sheets and Credit	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 chapter 5
6	Asset Prices, Bubbles and Expectations	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 chapter 8
7	Liquidity, Runs and Contagion	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 chapter 8
8	Midterm Exam
9	Global Financial Crisis	THE FINANCIAL CRISIS: WHO IS TO BLAME Howard Davies, 2010
10	Sovereign-Bank Nexus and Public Debt	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 chapter 9
11	The Rise of Shadow Banking and NBFIs	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 chapter 10
12	Global Financial Cycle and Capital Flows Monetary Policy, Fiscal Policy and Central Bank Balance Sheets	Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell;Macrofinancial Linkages: Trends, Crises, and Policies By Christopher W. Crowe, Simon Johnson, Jonathan David Ostry, Jeromin Zettelmeyer
13	Financial Infrastructure, Digital Money, CBDCs and Stablecoins Tokenisation, Programmable Finance, AI, Geopolitics and Energy	Cecchetti, S. and Schoenholtz, K., 2024 release. Money, Banking and Financial Markets. McGraw-Hill Education.
14	Presentations	-
15	Presentations
16	Final Exam

Course Notes/Textbooks

Modern Financial Macroeconomics: Panics, Crashes, and Crises, by Todd A. Knoop Blackwell, 2008 ISBN:1405161817

Macrofinancial Linkages: Trends, Crises, and Policies By Christopher W. Crowe, Simon Johnson, Jonathan David Ostry, Jeromin Zettelmeyer

Suggested Readings/Materials

Books

1) Principles of Macroeconomics: Global Financial Crisis Edition (with Global Economic Crisis GEC Resource Center Printed Access Card) by John B. Taylor and Akila Weerapana , SouthWestern College/West; 6th edition, 2009. ISBN-13: 978-1439078204

2) Macroeconomic Theory and Its Failings: Alternative Perspectives on the Global Financial Crisis, by Steven Kates (Editor), Edward Elgar Publications, 2010 ISBN: 9781848448193

3) Macrofinancial Risk Analysis Author(s): Dale F. Gray, Samuel W. Malone, 2008

4) Modern Financial Macroeconomics: Panics, Crashes, and Crises Todd A. Knoop

5)Cecchetti, S. and Schoenholtz, K., 2024 release. Money, Banking and Financial Markets. McGraw-Hill Education. ISBN: 9781260226782

6)THE FINANCIAL CRISIS: WHO IS TO BLAME by Howard Davies , 2010

Journals

1)Review of financial economics - https://onlinelibrary.wiley.com/journal/18735924

2)Journal of financial economics - https://www.journals.elsevier.com/journal-of-financial-economics

3)Applied financial economics - https://www.tandfonline.com/loi/rafe20

4)Applied financial economics letters - https://www.tandfonline.com/loi/rafl20

5)Current issues in economics and finance - https://www.springer.com/la/book/9789811058097

6)Journal of Business Cycle Measurement and Analysis - https://www.oecd-ilibrary.org/economics/journal-of-business-cycle-measurement-and-analysis_17293626

Other

1)OECD www.oecd.org

2) Financial Times www.ft.com

3) Wall Street Journal www.wsj.com

4) Federal Reservehttps://www.federalreserve.gov/aboutthefed/educational-tools/chairmans-lecture-series-about.htm

5) IMF www.imf.org

6) BIS www.bis.org

7) https://www.bis.org/cbanks.htm?m=2%7C9

8) TCMB www.tcmb.org

Semester Activities	Number	Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury	1	20
Project	1	40
Seminar / Workshop
Oral Exams
Midterm	1	40
Final Exam
Total

Weighting of Semester Activities on the Final Grade	2	60
Weighting of End-of-Semester Activities on the Final Grade	1	40
Total

Semester Activities	Number	Duration (Hours)	Workload
Theoretical Course Hours (Including exam week: 16 x total hours)	16	3	48
Laboratory / Application Hours	16		0
Study Hours Out of Class	16	3	48
Field Work			0
Quizzes / Studio Critiques			0
Portfolio			0
Homework / Assignments			0
Presentation / Jury	1	10	10
Project	1	32	32
Seminar / Workshop			0
Oral Exam			0
Midterms	1	30	30
Final Exam			0
		Total	168

#	Program Competencies/Outcomes	* Contribution Level
#	Program Competencies/Outcomes	1	2	3	4	5
1	To be able to identify and analyze problems in the field of trade and finance, and to develop solutions.	-	-	-	X	-
2	To be able to apply theoretical and practical knowledge of international trade and finance to real-world professional contexts.	-	-	-	X	-
3	To be able to critically analyze global market developments and evaluate their implications for business and policy.	-	-	-	-	-
4	To be able to collect, analyze, and interpret financial and economic data by using digital and information technologies effectively.	-	-	-	-	-
5	To be able to understand and interpret legal frameworks, regulations and practices relevant to international trade and finance.	-	-	-	-	-
6	To be able to anticipate, define, and manage financial and trade-related risks through informed decision-making.	-	-	X	-	-
7	To be able to acquire and use verbal, written, and numerical skills effectively for the nature of international trade and finance program.	-	-	-	-	-
8	To be able to obtain, synthesize, and report trade- and finance-related information clearly and effectively.	-	-	-	-	-
9	To be able to contribute effectively as individuals, team members, and leaders in multidisciplinary environments.	-	-	-	-	-
10	To be able to evaluate trade and finance issues from ethical, social, and sustainability perspectives.	-	-	-	-	-
11	To be able to collect data in the areas of International Trade and Finance and communicate with colleagues in a foreign language ("European Language Portfolio Global Scale", Level B1).	-	-	-	-	-
12	To be able to speak a second foreign at a medium level of fluency efficiently.	-	-	-	-	-
13	To be able to relate the knowledge accumulated throughout human history to their field of expertise.	-	-	-	-	-