EC913-7-SP-CO:
Computational Agent-Based Macro-Economics, Financial Markets and Policy Design

The details
2019/20
Economics
Colchester Campus
Spring
Postgraduate: Level 7
Current
Monday 13 January 2020
Friday 20 March 2020
20
14 October 2019

 

Requisites for this module
(none)
(none)
(none)
(none)

 

(none)

Key module for

(none)

Module description

The objective of this module is to integrate macroeconomic models with financial modelling and to respond to challenges to macroeconomics thrown up by the 2007 financial crisis. The main methodological innovation is the use of granular network analysis which departs from the highly aggregated traditional macroeconomic approach with low data resolution.

Part I of the module will start with a critical examination of the factors that led to the 2007 Global Financial Crisis and on the role of macro-prudential policy being proposed in the welter of reforms such as the Dodd-Frank and Basel III.

Part II of the course will cover multi agent based sectoral flow of funds models that will be combined with financial network models. This will provide an integrated modelling tool for systemic risk monitoring. Systemic risk from financial leverage and financial contagion is modelled as a negative externalities problem and hence the need for digital mapping of the banking and financial system with holistic visualization tools provided by network models is addressed. Stress testing simulation platforms are designed not just from the perspective of regulatees but also for robust policy that can avoid perverse incentives and fallacies of composition. The Eurozone crisis will be dealt with in detail.

Part III will develop the global granular macroeconomic model which is used to analyse within country imbalances and cross border imbalances. Globalization, offshoring and the growth of the financial sector relative to that of other sectors in OECD countries is given as an explanation for the low GDP growth and extreme GDP volatility.

Part IV of the course covers the pros and cons of non-standard monetary policy such as Quantitative Easing.

Module aims

The objective of this module is to integrate macroeconomic models with financial modelling and to respond to challenges to macroeconomics thrown up by the 2007 financial crisis.

Module learning outcomes

At the completion of the course, the student will have acquired cutting edge tools to address the challenges posed to macroeconomics and financial markets. The student will be able to contrast multi-agent granular network based macro-modelling tools with more standard ones. The advanced skill sets acquired from this module will equip the student to contribute to regulatory and policy design issues thrown up in the wake of the 2007 financial crisis.

Module information

No additional information available.

Learning and teaching methods

Feedback for this module will occur through class meetings where we will go over the answers to problem sets and where you will be able to ask questions about your own method of solution; answers that will be posted on the website for the module that will give you written guidance on the appropriate method to approach the problems, assignments, and tests; and office hours where any additional questions can be addressed. You should be sure that you use these methods to understand how to improve your own performance.

Bibliography

This module does not appear to have a published bibliography.

Assessment items, weightings and deadlines

Coursework / exam Description Deadline Weighting
Coursework Term paper 24/04/2020
Exam 120 minutes during Summer (Main Period) (Main)

Overall assessment

Coursework Exam
50% 50%

Reassessment

Coursework Exam
50% 50%
Module supervisor and teaching staff
Professor Sheri Markose
For further information, send a message to scher@essex.ac.uk

 

Availability
No
No
No

External examiner

Dr Francis Kiraly
Newcastle University
Lecturer Economics
Resources
Available via Moodle
Of 40 hours, 22 (55%) hours available to students:
18 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).

 

Further information
Economics

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