International Financial System
Lecture, 4.00 ECTS
The LV presents the various financial markets and highlights the role of individual financial market participants. In addition, students are provided with a broader understanding of information processing, risk and interest rates on markets. Common financial instruments are deepened and treated with a focus on practical aspects.
The core contents should include
 Financial markets and the role of financial market participants (especially banks and insurance companies);
 liquidity and market efficiency; arbitrage;
 risk and interest rates; yield curve; central banks;
 Financial markets: fixed income, equity;
 FX markets;
 derivatives: forwards, futures, swaps, options.
Optional contents may include:
 market cycles and financial crises;
 trading; clearing and settlement
Graduates understand the structure of the international financial system (markets and players), as well as the instruments and functioning of monetary policy. The focus is on the European Economic Area. In particular, the following contents are taught to the students: (a) economic relevance of financial intermediaries, (b) international financial markets relevant for banks and insurance companies.
Recommended or required reading and other learning resources / tools
References: Blanchard/Illing (2009): Makroökonomie, Pearson. Bofinger et al (1997): Geldpolitik, Vahlen. Gantenbein/Spremann (2013): Finanzmärkte, UTB. Gischer et al (2012): Geld, Kredit und Banken, Springer. Holtemöller (2008): Geldtheorie und Geldpolitik, Mohr/Siebeck. Madura (2011): Financial Markets and Institutions, South Western. Mishkin (2007): The Economics of Money, Banking, and Financial Markets, Pearson/Addison Wesley. Mishkin/Eakins (2012): Financial Markets and Institutions, Prentice Hall.
Academic journals: BIS Reports; Publications of the ECB, the IMF and other central banks; Credit & Capital Markets.
Mode of delivery
Prerequisites and co-requisites
Assessment methods and criteria
Lecture: final exam