MIT Subject Listing & Schedule
Fall 2018 Search Results

Searched for: "14.07"    Subjects offered any term

1 subject found.

14.07 Financial Markets and the Macroeconomy

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Prereq: 14.01 and 14.02
Units: 4-0-8
Lecture: TR2.30-4 (E51-376) Recitation: F3 (E51-145)

Analyzes the macroeconomic effects of financial markets, with emphasis on understanding financial crises. Surveys the benchmark theories of asset pricing, investment, and the capital structure. Topics include risk, arbitrage, financial market equilibrium, and market efficiency. Also introduces financial frictions, and analyzes the mechanisms by which frictions cause financial crises; focuses on asymmetric information, leverage, financial intermediation, belief disagreements, asset bubbles, fire sales, bank runs, interconnections, and complexity.
A. Simsek
Textbooks (Fall 2018)