FNCE306 Current Issues in Global EconomyIstanbul Okan UniversityDegree Programs Civil Engineering (English)General Information For StudentsDiploma SupplementErasmus Policy StatementNational Qualifications
Civil Engineering (English)
Bachelor TR-NQF-HE: Level 6 QF-EHEA: First Cycle EQF-LLL: Level 6

General course introduction information

Course Code: FNCE306
Course Name: Current Issues in Global Economy
Course Semester: Fall
Course Credits:
Theoretical Practical Credit ECTS
3 0 3 6
Language of instruction: EN
Course Requisites:
Does the Course Require Work Experience?: No
Type of course: Compulsory
Course Level:
Bachelor TR-NQF-HE:6. Master`s Degree QF-EHEA:First Cycle EQF-LLL:6. Master`s Degree
Mode of Delivery: Face to face
Course Coordinator : Dr.Öğr.Üyesi MEHMET GÖKHAN GÖKTAN
Course Lecturer(s):







Course Assistants:

Course Objective and Content

Course Objectives: The main objective of this course is to introduce the topics of mortgage markets (a strong emphasis on subprime mortgage crisis), dynamics of financial crisis, financial regulation and its implications on corporate scandals, financial innovation, dynamics of systemic banking crisis and global financial imbalances, the concepts of globalization and financial liberalization policies, the mutual fund industry, pension funds and specifics of investment banking.

Course Content: Mortgage markets, dynamics of financial crisis, financial regulation and innovation, systemic banking crisis, corporate scandals, financial liberalization, mutual funds and investment banks.

Learning Outcomes

The students who have succeeded in this course;
Learning Outcomes
1 - Knowledge
Theoretical - Conceptual
1) • Recognize key macroeconomic indicators and tools to analyze recent global economic phenomena.
2) • Introduce the concepts of globalization and liberalization in financial markets to analyze key economic issues in global framework.
3) • Identify the concept of ‘financial innovation’ regarding key issues and problems in global economic condition.
4) • Analyze several economic cases creating global anomalies in financial markets.
2 - Skills
Cognitive - Practical
3 - Competences
Communication and Social Competence
Learning Competence
Field Specific Competence
Competence to Work Independently and Take Responsibility

Lesson Plan

Week Subject Related Preparation
1) Derse genel bakış NONE
2) The Mortgage Markets: specifics of mortgages, characteristics of the residential mortgage, types of mortgage loans, secondary mortgage market, securitization of mortgages Reading: Mishkin&Eakins, chapter 14
3) Financial crisis: dynamics of financial crisis in advanced and emerging economies. Reading: Mishkin & Eakins, Chapter 8
4) Financial crisis: dynamics of financial crisis in advanced and emerging economies. Reading: Mishkin & Eakins, Chapter 8
5) Financial Regulation and innovation: government safety net, types of financial regulation, financial innovation, relationship between corporate scandals and regulations through time. Reading: Mishkin, chapter 10. Reading: L. Hail, Tahoun, A., Wang, C., Corporate Scandals and Regulation, Journal of Accounting Research, Vol. 56, No.2, 2018
6) Financial Regulation and innovation: government safety net, types of financial regulation, financial innovation, relationship between corporate scandals and regulations through time. Reading: Mishkin, Chapter 8 Reading: L. Hail, Tahoun, A., Wang, C., Corporate Scandals and Regulation, Journal of Accounting Research, Vol. 56, No.2, 2018
7) Financial Regulation and innovation: government safety net, types of financial regulation, financial innovation, relationship between corporate scandals and regulations through time. Reading: Mishkin, chapter 8 Reading: L. Hail, Tahoun, A., Wang, C., Corporate Scandals and Regulation, Journal of Accounting Research, Vol. 56, No.2, 2018
8) Midterm Exam
9) Banking Crisis: defining sytemic banking crisis, effect of banking crisis on domestic and global economy through time. Reading: Luc Laeven and Fabian Valencia, Resolution of Banking Crisis: The Good, the Bad, and the Ugly, IMF Working Papers, WP/10/146, 2010. Luc Laeven and Fabian Valencia, Systemic Banking Crisis Database: An Update, IMF Working Paper, WP/10/146, 2012
10) Banking Crisis: defining systemic banking crisis, effect of banking crisis on domestic and global economy through time. Reading: Luc Laeven and Fabian Valencia, Resolution of Banking Crisis: The Good, the Bad, and the Ugly, IMF Working Papers, WP/10/146, 2010. Reading: Luc Laeven and Fabian Valencia, Systemic Banking Crisis Database: An Update, IMF Working Paper, WP/10/146, 2012.
11) Financial liberalizations and finacial reforms Reading: A. Abiad, Detragiache, E., Tressel, T., A New Database of Financial Reforms, IMF Working Paper, WP/08/266, 2008. Reading: A. Abiad and Mody, A., Financial Reform: What Shakes It? What Shapes It? , American Economic Review, Vol. 95, No. 1, 2005.
12) Financial liberalizations and finacial reforms Reading: A. Abiad, Detragiache, E., Tressel, T., A New Database of Financial Reforms, IMF Working Paper, WP/08/266, 2008. Reading: A. Abiad and Mody, A., Financial Reform: What Shakes It? What Shapes It? , American Economic Review, Vol. 95, No. 1, 2005.
13) The Mutual Fund Industry: specifics of mutual funds, investment objective classes, fee structure of investment funds, reglation of mutual funds, hedge funds Reading: Mishkin&Eakins, chapter 20
14) Investment Banks, Security Brokers and Dealers, and Venture Capital Firms: investment banks, underwriting, equity sales, mergers and acquisitions, private equity investments, venture capital firms. Reading: Mishkins&Eakins, chapter 21

Sources

Course Notes / Textbooks:
The Economics of Money, Banking and Financial Markets, Frederic S. Mishkin, 13th ed.(Global ed.), 2021.

Financial Markets and Institutions, Frederic S. Mishkin, Stanley G. Eakins, 9th ed. , 2018.

References: L. Hail, Tahoun, A., Wang, C., Corporate Scandals and Regulation, Journal of Accounting Research, Vol. 56, No.2, 2018.

Luc Laeven and Fabian Valencia, Resolution of Banking Crisis: The Good, the Bad, and the Ugly, IMF Working Papers, WP/10/146, 2010.

Luc Laeven and Fabian Valencia, Systemic Banking Crisis Database: An Update, IMF Working Paper, WP/10/146, 2012.

A. Abiad, Detragiache, E., Tressel, T., A New Database of Financial Reforms, IMF Working Paper, WP/08/266, 2008.

A. Abiad and Mody, A., Financial Reform: What Shakes It? What Shapes It? , American Economic Review, Vol. 95, No. 1, 2005.

Course-Program Learning Outcome Relationship

Learning Outcomes

1

2

3

4

Program Outcomes
1) Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems.
2) Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose.
3) Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.)
4) Ability to select and use modern techniques and tools needed for analyzing and solving complex problems encountered in engineering practice; ability to employ information technologies effectively.
5) Ability to design and conduct experiments, gather data, analyze and interpret results for investigating complex engineering problems or discipline specific research questions.
6) Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually.
7) Ability to communicate effectively, both orally and in writing; knowledge of a minimum of one foreign language; ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.
8) Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself.
9) Knowledge on behavior according ethical principles, professional and ethical responsibility and standards used in engineering practices.
10) Knowledge about business life practices such as project management, risk management, and change management; awareness in entrepreneurship, innovation; knowledge about sustainable development.
11) Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions.

Course - Learning Outcome Relationship

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems.
2) Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose.
3) Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.)
4) Ability to select and use modern techniques and tools needed for analyzing and solving complex problems encountered in engineering practice; ability to employ information technologies effectively.
5) Ability to design and conduct experiments, gather data, analyze and interpret results for investigating complex engineering problems or discipline specific research questions.
6) Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually.
7) Ability to communicate effectively, both orally and in writing; knowledge of a minimum of one foreign language; ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.
8) Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself.
9) Knowledge on behavior according ethical principles, professional and ethical responsibility and standards used in engineering practices.
10) Knowledge about business life practices such as project management, risk management, and change management; awareness in entrepreneurship, innovation; knowledge about sustainable development.
11) Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions.

Learning Activity and Teaching Methods

Individual study and homework
Lesson
Reading
Problem Solving
Project preparation
Q&A / Discussion
Case Study

Assessment & Grading Methods and Criteria

Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing)

Assessment & Grading

Semester Requirements Number of Activities Level of Contribution
Attendance 1 % 10
Midterms 1 % 30
Final 1 % 60
total % 100
PERCENTAGE OF SEMESTER WORK % 40
PERCENTAGE OF FINAL WORK % 60
total % 100

Workload and ECTS Credit Grading

Activities Number of Activities Workload
Course Hours 16 48
Study Hours Out of Class 16 80
Homework Assignments 4 12
Quizzes 4 2
Midterms 1 15
Final 1 22
Total Workload 179