AØKA08236U Summer school 2021: Macroeconomic Risk Management (F)
Professional work in Finance often requires the assessment of macroeconomic risks. Thus, it is desirable to acquire tools for better understanding these risks, to what extent they can (or cannot) be addressed through public policies, and what hedging strategies are available.
Fortunately it is possible to carry most of this analysis with standard Finance tools. 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.
After completing the course the student is expected to be able to:
- 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.
- 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
- 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.
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The course requires knowledge equivalent to that achieved in "Econometrics I" and "Corporate Finance and Incentives" from the Study of Economics, University og Copenhagen or similar.
The teaching (lectures and exercise classes) is conducted physically on campus.
So far, a negative test result/Corona pass must be presented at attendance until 1 August. Check Absalon and study notices in case of changes to this.
The teaching can also be followed online. Check out Absalon how to access the virtuel teaching.
Lectures: 4 hours every day from the 5th to 9th and 12th to 16th of July 2021.
Exercise classes: 3 days with 3 hours in the afternoon in the first and second week.
Selfstudy in the third week.
Timetable and venue: (Available from April 2021)
Press the link:
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-B5-5F21; [Name of course]””
-Select Report Type: "List - Week Days"
-Select Period: “Efterår/Autumn – Week 31-4”
Press: “ View Timetable”
- Class Instruction
At the beginning of the lectures there will be a short quiz on a reading for that lecture. Quizzes will be evaluated and the students will receive individual written and collective oral feedback on the quizzes.
For foreign students not enrolled: Admission requirements, registration etc: Study Economics.
For gæste- og enkelfagsstuderende: Tilmelding via Uddannelse i Økonomi.
- 7,5 ECTS
- Type of assessment
- Written assignment, 24 hoursindividual take-home exam. It is not allowed to collaborate on the assignment with anyone.
The exam assignment is given in English and must be answered in English.
In case of a pandemic like Corona the date, time and type of exam as well as use of aids may be changed. Any further information will be announced here in the Exam section.
- Exam registration requirements
Some mandatory assignments and quizzes must be approved to be able to sit the exam.
- All aids allowed
for the written exam.
In case of an oral reexam, please go to the section "Reexam" for further information about allowed aids.
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
for the written exam. The exam may be chosen for external censorship by random check.
- Exam period
The written exam takes place
July 22 from 10 AM to July 23 at 10 AM
July 26 from 10 AM to July 27 at 10 AM, 2021
Note: In special cases, the exam date can be changed to another day.
The written reexam will take place
in the period December 2021 - January 2022
NOTE: If only few students register for the written re-exam, the re-exam might change to a 20 minutes oral examination with 20 minutes preparation time.
All written aids allowed during the preparation time, no aids allowed during the examination.
If changed to an oral re-exam, the exam date, time and place might change as well. The Examination's Office then informs the students by KU e-mail.
Info is available in Digital Exam early December.
Criteria for exam assesment
Students are assessed on the extent to which they master the learning outcome for the course.
To receive the top grade, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.
- Course code
- 7,5 ECTS
- Full Degree MasterBachelor
- 1 block
- July the 5th to 27th 2021
More info: Go to 'Remarks'
Exam: Go to 'Exam'
- Course capacity
- Course is also available as continuing and professional education
- Study board
- Department of Economics, Study Council
- Department of Economics
- Faculty of Social Sciences
- Martin Gonzalez Eiras (3-716b694469677372326f7932686f)
Lectures: See ‘Course Coordinators’