Global Financial Mkts & Monetary Policy

Prerequisite Course: SIPAU6401 - Macroeconomic Analysis. This seminar will focus on some key topics in international finance, with special attention to the relationship between monetary policy and financial markets. Central banks play an important role in driving global financial markets, but at the same time, financial markets can also impact central banks and monetary policy. Understanding the feedback effects between them is important for both market participants and policymakers. Topics covered will include: The relationship between financial conditions and monetary policy; yield curves, term premia, and the real equilibrium interest rate; exchange rates, inflation, and central bank credibility; energy prices and supply shocks; and the recent resilience in emerging markets to higher global policy rates. Each weekly session will combine theory, empirical work, and case studies. Each session will start with a brief overview of the topic from the instructor, followed by a class discussion centered around the assigned weekly readings. Students are expected to be prepared for, and to actively participate in these discussions. Some weeks will also feature brief presentations by students.