Macroeconomics of Financial Markets


The objective of this course is to analyze the connection between macroeconomics and financial markets. We discuss how macroeconomic fluctuations change decisions in ways that affect asset prices. We study topics such as the link between interest rates and the economy, public debt, and financial crises.

General characterization





Responsible teacher

André de Castro Silva


Weekly - Available soon

Total - Available soon

Teaching language




The bibliography is composed mainly of class notes and slides. We use material from various sources. I frequently bring news from the press to the discussion in class. On the course webpage and on Moodle, you will find references to books and papers related to the course.

Course webpage
The course webpage is in Follow the link to Macroeconomics of Financial Markets (MSc). See the course webpage for data, links and texts. The lecture slides and material restricted by copyright issues are on Moodle.

Useful webpages
American Economic Association: American Finance Association:

European Central Bank:
Board of Governors of the Federal Reserve System: Federal Reserve Bank of St. Louis:

European Corporate Governance Institute:
National Bureau of Economic Research: Especially the programs on Economic Fluctuations and Growth, Monetary Economics, and Asset Pricing

See more links and resources on the course webpage.

Teaching method

We have lectures to cover a great part of the material. We use data and news to show how the connection between macroeconomics and financial markets happens in practice. We constantly relate the models covered in class to data.

Our sources of articles for class discussions are the Economist, the Financial Times, the Wall Street Journal, and others. Read the articles and participate.

Many firms of asset management have economic reports. The objective of the reports is to make you practice how to write your own economic report. You have to be convincing. Explain how to relate a model with what you are saying. Use data to support your opinion.

Evaluation method

The evaluation is composed of a final exam, economic reports, and class participation. Show up with your name tag.

The economic reports are to be done in groups of two or three. Your group has to analyze a recent economic event related to the course. The page limit is four pages, including figures, references, and tables. There will be three reports and I will consider the grades of your best two. So, you don’t need to turn in one of them. The reports have to be turned in through Moodle. The due dates are on the webpage. I will give more instructions about the reports during the course.

The grade of the class participation is based on your participation in class discussions: how you answer questions, which questions you make and so on. A good comment is one that changes the direction of a discussion. Don’t try to dominate the discussion. Let others talk too. A good  discussant listens, answers questions without deviating, and makes good questions.

Final Exam: TBA.

The final grade is calculated by 0.6×Final + 0.3×Reports + 0.1×Class Participation.

Subject matter

Asset pricing, the yield curve and macroeconomic activity, the connection between monetary policy and fiscal policy, interest rates and exchange rates, the implementation of monetary policy, financial crises.