This course presents the students the nature and organization of banks and other financial intermediaries and analyses their basic functions in the modern economy.

The aim of this course is to teach students the evolution of the financial system and the role of the money in the economic transactions. It also tries to explain interest rate determination and the relationship between interest rates and term structure. Understanding the role of financial institutions in asymmetric information, transaction cost, adverse selection, moral hazard and market efficiency are also among the objectives of the course.

This course aims to introduce the recent econometric techniques in measuring and forecasting financial volatility at the graduate level. The students will gain an understanding of characteristics of financial data and the skills required for volatility modeling using  ARCH  models and some of its extensions including multivariate GARCH models. The students will also learn how to forecast volatility in the presence of jumps. The course not only aims to provide students the technical  background, but also emphasizes empirical implementations to fill the gap between theory and practice.