The module aims to develop the following students' skills:

Knowledge and understanding:
- LG1. Knowledge and understanding of the markets where banks operate, in the international scene
- LG2. Knowledge and understanding of the main determinants of the exchange rate evolution over time

Ability to:
- LG3. Ability to develop expansion strategies for commercial banks, in the world stage
- LG4. Ability to forecast the behaviour of the exchange rate when new economic information is released and to develop investment strategies involving foreign currency

Judgement:

Analyse and evaluation
- LG5. Ability to measure and evaluate the performance of a given comemrcial bank

Communication:
- LG6. ability to produce and justify arguments, and be able to communicate them.

1. The banking system and the Central Bank
2. The Interbank Money Market and the Interventions Market
3. Financial analysis of commercial banks
4. Regulation of the banking sector
5. Models of exchange rate determination
6. Speculation in Foreign Exchange Markets
7. Currency crisis
8. The Theory of Optimal Currency Areas

The student must choose one of the following assessment methods:

Method A:

Final grade = [Intermediate Test]*50%+[Second Test]*50%

Method B:

Final Grade = [Final Exam]* 100%

Note: the Intermediate Test has four questions. The Final Exam has eight questions. The Second Test corresponds to the last four questions of the Final Exam.

Being able to perform a quick analysis of the financial statements issued by a company, mainly assessing its profitability and financial strength;

Knowing how to determine the value of an investment project for a company, based on the expected cash flow and the main decision criteria (NPV and IRR)

1. A Brief Introduction to Financial Statement Analysis
Growth. Profitability Analysis. Risk analysis and leverage. Financial health of the company.
2. An Introduction to Investment Project Analysis
Types of Projects. Cash Flow Table. Time Value of Money. Required Rate of Return. Pay Back Period. Net Present Value and Internal Rate of Return (Excel Functions: NPV and IRR). Constant Prices and Price Escalation. The effect of the Financing of the Project: Adjusted Present value; Free Cash Flow for the Equity and Cost of equity, Weighted Average Cost of Capital.

The main evaluation items are 2 tests, corresponding to 30% and 70% of the final grade, in which students are allowed to consult a formula summary.
Alternatively to the first test, students can prepare a case study (team work with 3 to 5 members) on an investment project using EXCEL and also solve several short problems, weighted together with participation in the classroom to reach 30%.

1. Knowledge and understanding of the most relevant statistical techniques and econometrics in estimating business cycles.
2. Knowledge and understanding of the econometric methodologies on forecasting and linear models.
3. Knowledge and understanding of the most relevant statistical techniques and econometrics in estimating regression models with endogeneity.
4. Ability to make use of sources of statistics and apply and interpret the econometric tools in the analysis of the business cycles, forecasting and endogeneity.
5. Ability to work in groups and present arguments based on theory, logic and factual data to other people.

1. Business Cycles
1.1. Definitions and classical cycles
1.2. Growth cycles and filters
2. Standard Forecasting Methods
2.1. Definitions and naive models
2.2. Exponential smoothing
3. Linear Models
3.1. Definitions and ARIMA models
3.2. Box-Jenkins methodology
4. Regression with Endogeneity
4.1. Definitions and examples
4.2. Estimation and inference

The approval in the class can be achieved by continuous assessment or a final examination.
1.Continuous assessment:
Test (50% of the grade); Team Project (50% of the grade).
Note:
Grade of Test with a minimum of 5 points.
2. Final exam (100% worth)

The student must be able to:
1. Identify main macroeconomic variables and economic policy instruments.
2. Identify changes in the short-term economic developments and their underlying factors
3. Understand economic policy mechanisms and evaluate the macroeconomic consequences of economic policy measures.

1. Macroeconomics from a dynamic perspective
2. Introduction to business cycles
3. General theories to understand the business cycles
4. Empirical methods and short-term economic indicators
5. Additional theoretical elements for the study of the business cycles
6. Macroeconomic stabilization policies

Performance evaluation will be done by a final test.

This course aims to develop the following skills:

1- Knowledge and understanding of the monetary policy channels of transmission to the stock markets, capital markets and forex markets;

2- Knowledge and understanding of the main monetary policy strategies followed by central banks all over the world;

3- Knowledge and understanding of the way stock, bond and forex markets have evolved over the last decade;

4- Ability to forecast the likely response of the central bank to different types of economic information;

5- Ability to forecast the likely response of the financial markets to the Central Bank' policy moves;

6- Ability to make proposals regarding the optimal sources of finance for the companies in different macroeconomic contexts;

7- Ability to develop studies and personal research with a high degree of autonomy;

8- Ability and motivation to life-long learning.

I. Introduction

II. Monetary Policy

Monetary Policy: instruments; goals; impact of monetary policy actions on the stock market, on the bond market, on the forex market, on the real economy and on inflation.

The Monetary Policy of the Fed (Federal Reserve System of the USA).
The Monetary Policy of the ECB (European Central Bank).
The Monetary Policy of the Bank of England
The Monetary Policy of the Hong Kong Monetary authority

Alternative monetary policy strategies: exchange rate targeting; monetary rule; inflation targeting; Taylor rule.

III. The behaviour of world stock markets during the last ten years and the role of monetary policy in explaining that behaviour


IV. The behaviour of the US and eurozone bond markets since 2005 and the role played by monetary policy


V. The euro-dollar exchange rate since 1999 and the influence of monetary policy

The student must choose one of the following assessment methods:
Method A: Periodic assessment
Final grade = [Intermediate Test]*50%+[Second Test]*50%
Note: the Intermediate Test has four questions. The Final Exam has eight questions. The Second Test corresponds to the last four questions of the Final exam.
Method B: Final exam
Final Grade = [Final Exam]* 100%

OA1. Knowledge and comprehension of the Portuguese banking and insurance systems and the key Financial Institutions (FI).

OA2. Knowledge and comprehension of capital regulation of banks and insurance companies.

OA3. Capacity to interpret financial statements and management ratios of banks and insurance companies.

OA4. Capacity to evaluate the risks affecting banks and insurance companies.

Part I - Introduction
1. Financial Institutions classification and description

Part II - Banks
2. The main risks faced by banks and other financial institutions
2.1. Interest rate risk
2.2. Market risk
2.3. Credit risk
2.4. Outros riscos
2.5. Measuring risks with accounting documents
3. Regulation of Banks capital

Part III - Insurances
4. Insurance and its economic role
4.1 Insurance concept
4.2 Basic concepts associated with the insurance activity
4.3 Economic importance of the insurance activity
5. The insurance offer
5.1 Life insurance and non-life insurance
5.2 Differences between life business and non-life business
5.3 The particular case of Accidents at Work
6. The insurance company
6.1 Description of the activity
6.2 Analysis of the activity
7. Capital requirements
7.1 Economic value
7.2 Capital requirements
7.3 Own funds
7.4 Capital ratios

The module uses the following teaching methods:
1. Lectures to present the theoretical frameworks.
2. Tutorials and seminars, with analysis and resolution of exercises
3. Self-study related to the student's independent work, as set out in the planning of classes. Self-study involves the analysis of academic papers
4. Tutorials, namely in the office hours.

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The students assessment uses the types of exams (frequência and exame) and evaluation dates (1.ª época and 2ª época) in ISCTEs regulations.
Periodic evaluation: team work (30%) and exam (frequência) (70%).
In the evaluation in final exam (1ª e 2ª Época) the exam has a weight of 100%.

1. Knowledge and comprehension of how competition and firms' strategies affects firms' performance in a given sector.
2. Capacity to determine the quantitative and qualitative impact of changes in competition and firms' strategies on firms' performance in a given sector, and be able to make proposals about the desirable financing structure of firms.
3. Capacity to evaluate the level of competition of a given sector
4. Capacity to make arguments and justify them from a theoretical and empirical point of view, and be able to communicate them.

1. From the industry to the market: measures of concentration
2. Competition and competitive advantage
3. Analysing the industry: an integration of models of analysis
4. Competition law and regulation
5. Firms´ boundaries and goals
5.1. Productive efficiency
5.2. Vertical integration
5.3. Product diversification
5.4. Incentives and agency
5.5. Mergers and acquisitions
6. Industries, the business cycle and the stock market
7. Analysis of key industries of the Portuguese and European economy

Periodic Evaluation:
Test: 60%
Group Work (Presentation and Discussion): 40%
To approve, an average of least 9.5 is required

Final Exam:
First Season (100%) or Second Season (100%)
To approve, a minimum score of 9.5 is required

At the end of this learning unit's term, the student must be able to:
1. Recognize and apply the classical time series models.
2. Recognize and apply alternative estimation methods.
3. Recognize and apply ARIMA and GARCH models.
4. Recognize and apply multivariate time series models.
5. Recognize and apply panel data models.
6. Use the main data analysis packages (EXCEL, R and RStudio):

1. Trends and simple smoothing methods
2. Decomposition and advanced smoothing methods
3. Alternative estimation methods
4. Introduction to stochastic time series models
5. ARIMA Models
6. ARIMA Models: applications and concepts review
7. Volatility measurement, ARCH modeling and forecasting
8. Introduction to multivariate models
9. Cointegration analysis: applications
10. Introduction to panel data models

The student should acquire analytical, information gathering, written and oral communication skills, according to the established learning outcomes. The following methodologies (LM) will be used:
1. Expositional, presentation of the theoretical reference frames
2. Participative, with analysis and resolution of application exercises
3. Active, with the realization of individual and group works
4. Experimental laboratory, with development and operation of computer models
5. Self-study.

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The evaluation can be done through Periodic Assessment or Assessment by Exam. Evaluation in periodic assessment includes a team work (40%) and a test (60%) covering the entire topics - the score must be at least 7.5 points. In periodic assessment students must attend at least 66.67% of the classes. During the exam students can use all the materials.

In the end of this learning unit's term, the student must:

LG.1 Describe the basic characteristics of futures, forwards, options and swaps contracts.

LG.2 To price of a futures, forwards and options contract.

LG3 Explain arbitrage strategies with derivatives and the role it plays in determining prices and promoting market efficiency

LG.4 Understand and apply hedging strategies and speculation strategies using derivatives.

1. Overview of Financial Markets.

2. Futures Markets
2.1 Basic characteristics of futures contracts.
2.2 Identification of the main international derivatives markets. Identification of the main futures contracts.
2.3 Pricing and Arbitrage
2.4. Risk management strategies with futures: hedging and speculation.
2.4.1 Speculation
2.4.2 Hedging strategies

3. Forward Contracts

4. Options Markets
4.1 Basic Concepts; Long and Short Positions and Payoffs; The mechanics and organisation of options market.
4.2 Options Premium
4.3 Options strategies
4.4 Models of Option Pricing
4.5 The Greeks:
4.6 Volatility and related topics
4.7 Exotic options

The evaluation system includes:

(1) Group work (30% of the final grade).
(2) 1st chance exam (70% of the final grade for students under the periodic evaluation system and 100% for the others). The 1st chance exam for students under the periodic evaluation system cannot be lower than 7.5.

The resitting and special exams will occur under the conditions of the master assessment rules with a weight of 100%.

The master´s dissertation is a first attempt to study a subject using the scientific method. The purpose of this curricular unit is that the student choose a research subject, prepare one or more Research Questions and, then, find research answers to those questions using scientific methods. Namely, the research should be based on empirical analysis of data (directly obtained by the student or obtained in an existing database).

1.Study of bibliography on the chosen topic;
2.Preparation of research questions
3.Research of data and/or legal documents
4.Analysis of the data and documents with the goal of answering the research questions
5.Writing the dissertation
6.Public presentation of the dissertation (viva)

After the dissertation´s submission, a jury is chosen to assess the work done and evaluate if it is in line with the goals defined for a Master Dissertation. If the jury finds that the dissertation fulfils those goals, the student has to present and defend the dissertation in public. At the end of this session, the jury decides - based on the dissertation and on the performance of the student during the public presentation - the classification of the module "Master Dissertation".

This course aims to develop the following skills:
Knowledge and understanding of the nature of scientific activity, with special reference to the field of monetary and financial economics
Knowledge and understanding of the main approaches to developing a master degree dissertation
Knowledge and understanding of the main bibliographical sources in the monetary and financial economics field
Knowledge and understanding of the main sources of data in the monetary and financial economics field
Ability to formulate alternative hypothesis and theories that might explain different types of phenomena and variable behaviour
Ability to use empirical data to test the validity of hypothesis and theories;
Ability to construct sound arguments and to convey them to different types of audiences;
Ability to develop studies and personal research with a high degree of autonomy;
Ability and motivation to life-long learning.

1. Scientific method
2. Data bases search and bibliographical references search
3. The masters dissertation: nature and alternative approaches
4. The formal demands of academic writing
5. Developing a research proposal

The system of assessment is periodic and the final grade is computed with the following weights: final grade = [research proposal grade, given by the dissertation coordinator ]*70%+[Grade obtained in work about Qualitative Analysis]*20%[Grade obtained in the oral presentation of the research proposal]*10%
Given the specificity of this module, there is no final exam.

The module aims to develop the following learning outcomes:
LA1. Ability to do bibliographic research and write a literature review about a research topic.
LG2. Ability to research and analyse data using adequate methods

Syllabus points (SP):
SP1. Literature review
a. Bibliographic research
b. Writing the literature review
SP2. Empirical analysis
a. Research and analysis of data and writing the empirical analysis.
b. Complements on econometric methods applied to monetary and financial economics

The periodic assessment is done through the following elements:
- Realization of a literature review about the research topic chosen by the student (written report) (40%)
- Realization of an empirical analysis about the research topic chosen by the student (written report and oral presentation) (40%).
- Team work about databases (20%)
Given the specificity of this module, there is no final exam.