KTTS4180 Macroprudential Policy and Financial Stability (5 cr)

The importance of financial stability for real economy. Recent developments in macroprudential policy and tools and their role in addition to traditional bank regulation in safeguarding financial stability. Systemic risks as threats to financial stability: identification, early warnings, and assessment. Contagion as a form of systemic risk. Financial stability and macroprudential policies in macroeconomic models.

The course deals with following UN sustainable development goals:

16 Peace, justice and strong institutions

Learning Outcomes: On successful completion of the module, students should be able to:
1. Apply macroeconomic analysis in financial sector
2. Conduct macroprudential analysis in context of business cycles and systemic risks in financial markets;
3. Use financial data in European Financial market and to assess European Central Bank policies
4. Theoretical basis of macroprudential analysis and its theoretical basis useful in financial market analysis of early warning indicators.
5. Adapt contagion analysis related especially to interbank markets and understand the implications of bank capital requirements in maintaining stability of financial markets

The course improve following generic skills:

- critical thinking

- co-operative skills

- oral and verbal communication

- critical evaluation and assessment

- policy evaluation

Teachers are experts and policy makers from Bank of Finland