Base Knowledge
Basic knowledge of Financial Mathematics, Macroeconomics and Microeconomics.
Teaching Methodologies
Theoretical-practical classes will be taught.
Learning Results
The course aims to give the student a base of knowledge and tools, which allow him to assess how decisions taken by economic agents, in the money and financial market, influence the functioning of the economy.
It is intended that the student knows the ways of financing the economy and the functioning of the monetary and financial institutions that operate in our financial market.
It is also intended that the student understands the functioning mechanisms of the monetary system and the process related to the creation, destruction and supply of money in the EURO zone.
Program
Chapter 1 – FINANCIAL SYSTEM AND FINANCIAL INSTITUTIONS
1.1. Economy Financing and Economic Balance
1.2. The Portuguese Financial System
1.3. Regulation of the financial system
Chapter 2 – MONEY
2.1. Money Functions
2.2. Forms of money
2.3. Evolution of the payment system
Chapter 3 -INTRODUCTION TO FINANCIAL MARKETS
3.1. Utility theory in a context of uncertainty
3.2. Financial Asset Portfolio Theory
Chapter 4 – EXCHANGE MARKETS
4.1 Exchange markets and exchange rates
4.2 Exchange rates in the long run
4.3 Short-term exchange rates
Chapter 5 – MONETARY POLICY INSTRUMENTS AND INTEREST RATES
5.1. Institutional framework of the currency creation process in the EURO zone
5.2. Euro area monetary aggregates and respective balance sheets
5.3. The interbank money market
5.4. Monetary policy of the European Central Bank.
5.5. Impact of monetary policy on interest rates
5.6. The monetary multiplier
5.7. The relationship between forward and spot interest rates
5.8. Theories determination of long-term interest rate
Chapter 6 – DEMAND FOR MONEY
6.1. Classical theory and neo-quantitative theory
6.2. Keynesian and neo-Keynesian theories
6.3. Difference between the quantitative approach and the Keynesian approach
Curricular Unit Teachers
Internship(s)
NAO
Bibliography
- Abreu, M., Afonso, A., Escária, V. & Ferreira, C. (2022). Economia Monetária e Financeira, Escolar Editora, 4.ª edição
- Afonso, A., Borges, M. R., Calado, J. & Garcia, M. T. (2016). Economia Financeira – Teoria e Exercícios, Escolar Editora.
- Banco de Portugal (2011). Regime Geral das Instituições de Crédito e Sociedades Financeiras
- Fernandes, A. L. C. & Mota, P. R. (2017). A teoria e a política monetárias na atualidade. Almedina,4.ª edição
- Fonseca, J. S. (2019). Economia Monetária e Financeira. Imprensa da Universidade de Coimbra.
- Mishkin, F. (2018). The Economics of Money, Banking and Financial Markets, Pearson, 12th Edition
Para efeitos da realização dos trabalhos, recomenda-se a consulta do link:
https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19