ELE 3913 Macro-Finance

ELE 3913 Macro-Finance

Course code: 
ELE 3913
Department: 
Economics
Credits: 
15
Course coordinator: 
Tommy Sveen
Espen Henriksen
Course name in Norwegian: 
Macro-Finance
Product category: 
Bachelor
Portfolio: 
Bachelor - Programme Electives
Semester: 
2025 Spring
Active status: 
Active
Level of study: 
Bachelor
Teaching language: 
English
Course type: 
One semester
Introduction

The course will provide students with an understanding about relationship between financial markets and the macro economy. The course will study how financial markets affect macroeconomic variables and, conversely, how the macro economy influences financial markets. Special emphasis will be placed on connecting theory to real-world data.

Learning outcomes - Knowledge

This course focus on the economy as a whole studying both macroeconomic and financial variables. Special emphasis is placed on developing knowledge about:

  • The determinants of aggregate real variables such as GDP and consumption and how do they interact with financial variables such as asset prices and interest rates.
  • The building blocks of modern general equilibrium macro-finance models.
  • How central banks set nominal interest rates.
  • The relationship between interest rates with different maturity.
  • The consequences of incomplete financial markets and financial frictions.
Learning outcomes - Skills

The course will enable students to:

  • Collect and analyse macroeconomic and financial data using appropriate digital tools.
  • Understand the basic microeconomic foundations of general equilibrium and macroeconomic outcomes.
  • Apply quantitative methods to macroeconomic and financial problems.
  • Analyze the macroeconomic forces driving financial markets.
  • Analyze the financial forces driving macroeconomic variables.
  • Present analysis of financial and macroeconomic variables.
General Competence
  • Students will enhance their knowledge in economics and learn how to apply that knowledge to understand both macroeconomics and finance.
  • Students will develop their analytical and computational skills.
Course content

Following are the main topics covered in the course:

  • Business cycle facts: macroeconomic and financial variables
  • Decision making under uncertainty
    • Preferences and risk
    • Consumption, saving and portfolio choice
  • A macroeconomic model with asset pricing
    • Households and firms, preferences and technology, resource constraints and general equilibrium
  • Fundamentals of asset pricing
    • Relative versus absolute pricing
    • State pricing, non-arbitrage, the pricing kernel and risk premia, risk-neutral probabilities
  • Monetary policy and the term-structure of interest rates
  • Incomplete financial markets, precautionary saving and macroeconomic fluctuations
  • Financial frictions, financial crises and the macro economy
Teaching and learning activities

Complementary learning tools will be used during the course. There will be exercises integrated into lectures and students will prepare an evaluation portfolio during the semester. Students will have the possibility to present their portfolio during classes.

Software tools
No specified computer-based tools are required.
Additional information

Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class.

Qualifications

Higher Education Entrance Qualification

Disclaimer

Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Required prerequisite knowledge

This course requires prior knowledge of mathematics (MET 2910), statistics (MET 2920), business economics (BØK3422), finance (BØK 3423), microeconomics (SØK 3520), and macroeconomics (SØK 3525) or equivalent.

Assessments
Assessments
Exam category: 
Submission
Form of assessment: 
Submission PDF
Exam/hand-in semester: 
First Semester
Weight: 
40
Grouping: 
Group/Individual (2 - 4)
Duration: 
1 Semester(s)
Comment: 
Students will present and get feedback on assignment in class.
All exams must be passed to obtain a final grade in the course.
Exam code: 
ELE 39131
Grading scale: 
ECTS
Resit: 
Examination when next scheduled course
Exam category: 
School Exam
Form of assessment: 
Written School Exam - digital
Exam/hand-in semester: 
First Semester
Weight: 
60
Grouping: 
Individual
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration: 
3 Hour(s)
Comment: 
All exams must be passed to obtain a final grade in the course.
Exam code: 
ELE 39132
Grading scale: 
ECTS
Resit: 
Examination every semester
Type of Assessment: 
Ordinary examination
All exams must be passed to get a grade in this course.
Total weight: 
100
Student workload
ActivityDurationComment
Teaching
84 Hour(s)
Prepare for teaching
180 Hour(s)
Group work / Assignments
100 Hour(s)
Submission(s)
30 Hour(s)
Seminar groups
6 Hour(s)
Examination
3 Hour(s)
Sum workload: 
403

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 15 ECTS credit corresponds to a workload of at least 400 hours.