Macroeconomic Risk Management

About

In this course we will integrate knowledge acquired in different areas (e.g. Corporate Finance, Financial Intermediation, Risk Management, and Behavioral Finance) to study the impact of macroeconomic risks.

We will start with an in depth analysis of the Great Recession that will show us how the financial system can amplify shocks. Then we will use Finance tools to study macroeconomic risk and their optimal and feasible management. We will then study two particular types of global risk: Of a global nuclear war, and global warming. Finally we will consider how fiscal and monetary policy smooth business cycles and how the social security system can redistribute intergenerational shocks, highlighting differences in how these risks can be managed in developed and developing countries

Course leader

Martin Gonzalez Eiras

Target group

Bachelor/Masters

Course aim

Knowledge:

- Account for the basic concepts of several macroeconomic risks that affect business cycles.
- Identify these risks and discuss the best way to address them
- Discuss - in economic terms - the reasons and implications of these decisions.

Skills:

- Use finance tools, such as the Capital Asset Pricing Model or Value at Risk to analyze the financial aspects of these shocks.
- Apply new tools such as the Long Run Risk Consumption Based Asset Pricing Model to study global macroeconomic risks.
- Analyze how to deal with exposure to macroeconomic risk, where the concepts and methods of modern finance analysis are central

Competencies:

- Apply the acquired knowledge and skills independently in later employment in either public or private institutions.
- Master and implement relevant financial models and concepts in new and complex contexts.

Fee info