Master Program in Money and Finance MMF Wiwi Uni Frankfurt

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                           Master’s Program
                           in Money and Finance (MMF)

                                                House of Finance

Preface                                                                                   2
1. Introduction                                                                           3
2. Why MMF?                                                                               4
3. Structure of the Program                                                               5
4. Full-time versus Part-time Study                                                       7
5. Course descriptions                                                                    9
6. Faculty                                                                                16
7. Admission Requirements and Procedures                                                  20
8. Tuition Fees and Scholarships                                                          21
9. The Setting                                                                            22


The Master’s program in Money            city in the world with two central     If you are a promising candidate
and Finance (MMF) is an innovative       banks (the ECB and the German          committed to a successful career,
joint venture of the Department          Bundesbank), it offers unique          we hope that the information in
of Money and Macroeconomics              opportunities for interaction with     this brochure will encourage you
and of the Department of Finance,        practitioners. The program is taught   to apply to MMF, take advantage
both located in the new House            exclusively in English; knowledge      of what it offers, and contribute to
of Finance. The program offers           of German is not required for          making it a stimulating and effective
promising students from all over the     admission to, or completion of the     program for students and faculty
world an intellectually stimulating      program. It has been designed with     alike.
and challenging setting in which to      a view to establishing itself as a
prepare for their professional careers   leading Master’s program integrating   Prof. Michael Haliassos, PhD
in central banking, commercial           studies in monetary economics,         Program Director, Master’s Program
banking, insurance and other             macroeconomics and finance and a        in Money and Finance
financial services. By being located in   major gateway to high-profile jobs in   Goethe University Frankfurt
Frankfurt, one of the world‘s leading    the banking and financial sector.
financial centers and the only
1. Introduction

Graduate education in Germany             strengths of its various constituents.   and Macroeconomics and the
is being revolutionized. Following        Since August 2008, the Departments       Department of Finance operate, is
the Bologna agreement, traditional        of Money and Macroeconomics and          accredited by AACSB in the United
5-year (‘Diplom’) programs are            of Finance have joined forces with       States. The inaugural 2008 MMF
being replaced by 3-year Bachelor’s       major research centers and institutes,   class had 29 students, 22 of whom
programs followed by two-year             such as the Center for Financial         are international students from 19
Master’s programs, nationally             Studies (CFS) and the Institute for      different countries. The program
and internationally recognized.           Monetary and Financial Stability,        is selective as well as highly inter-
The Goethe University Faculty             as well as with the Goethe Business      national, with a maximum planned
of Economics and Business                 School and with law faculty working      size of 40 students per year.
Administration is among the very          on the interactions between law and
few in Germany to pioneer the             finance to establish the House of         The House of Finance occupies
transition.                               Finance at Goethe University.            impressive newly-built premises on
                                                                                   the new Westend campus of Goethe
Research and teaching in the areas        The Master’s program in Money            University, right in the center of
of monetary economics, macroeco-          and Finance (MMF) is an innovative       Frankfurt, next to Grueneburg
nomics, and finance in Frankfurt           joint venture of the Department          Park and in proximity to the
are also being revolutionized by          of Money and Macroeconomics              European Central Bank, the German
the establishment of the House            and of the Department of Finance         Bundesbank, and a vast array of
of Finance. Its establishment is          in the House of Finance, and it          banking and financial industry firms.
intended to encourage interactions        is taught entirely in English,           MMF students attend lectures in
between academic departments,             the language of the profession.          modern, fully equipped lecture halls
research institutes, and practitioners,   The Faculty of Economics and             at the House of Finance and at the
as well as development of innovative      Business Administration, within          newly-built Lecture Hall Center right
teaching programs that combine the        which the Department of Money            opposite the Faculty building.

2. Why MMF?

MMF is aimed at high-caliber            role of money in monetary policy is        broader toolkit than that offered
graduates of Economics, Business,       being debated on both sides of the         by single-field Master’s programs
and related undergraduate               Atlantic. Household finances are            in either economics or finance.
programs whose goal is to prepare       becoming increasingly complicated.
for professional careers in the         Growing numbers of households            2. It is also broader than typical
banking and financial sector. The        participate in a broad array of assets      combined Master’s programs
program is designed to utilize          and debts, undertaking considerable         in economics and finance by
the strengths of Goethe faculty         risk in their portfolios and having         placing greater emphasis on
and their links to the wide array       to provide more for their old age to        macroeconomic and monetary
of financial institutions and            meet shortcomings of ailing social          policy issues.
practitioners based in Frankfurt,       security systems. Firms face the
in order to provide academically        challenges and consequences of the       3. MMF is specifically designed to
sound and professionally relevant       new monetary policy regime and              combine academic rigor with
education. Its key objective is to      of globalization in product markets,        a focus on topical issues facing
put graduates in the best position to   factor markets, and in banking              policy makers and financial
compete for highly rewarding jobs.      and financial services. Changing             practitioners, and is therefore
                                        needs of households and firms                best suited for students planning
Practitioners in the banking and        have generated new challenges               professional careers in the
financial sector are faced, especially   for the financial sector, in product         banking and financial sector.
today, with new challenges, as they     development and marketing; and in
operate in a policy environment and     provision and regulation of financial     4. The structure of the program
they cater to needs of households       advice.                                     combines regular core and
and firms that are changing rapidly.                                                 elective courses with seminars
In most European countries, the         The Frankfurt MMF program is                and topical courses. Seminars
conduct of monetary policy is no        uniquely designed with such new             provide hands-on experience,
longer the task of national central     challenges in mind.                         while topical courses are
banks, but of a major new player,                                                   taught by high-level Frankfurt
the European Central Bank. Mone-        1. It combines the fields of money,          practitioners who share their
tary policy does not amount to             macroeconomics, and finance,              experiences and insights with
‘setting the money supply’, and the        providing graduates with a much          students.

3. Structure of the Program

The Master’s program in Money             Two lists of elective courses are          natural setup for learning how to
and Finance is designed as a four-        provided below, together with short        make effective presentations of
semester program, with the fourth         course descriptions. The lists are         specialized topics, as well as how
semester being devoted to research        indicative and will be continually         to benefit from the knowledge of
and writing of a Master’s thesis. It      updated to reflect new trends in            others. Seminars are typically held
has five major components:                 relevant research and changes              outside the university, in locations
                                          in the composition of the pool of          that are conducive to productive
• Core courses (5 courses)                instructors.                               but informal interaction between
• Electives (6 courses)                                                              students and faculty (e.g., in
• Topical courses (4 courses)             Topical courses are intended               University-owned facilities in
• Seminars (3 seminars)                   to provide a close look at how             Rieszlern resort, Austria). Each
• Master’s thesis                         academic principles are applied to         student takes two field seminars,
                                          work carried out by practitioners          one coded M and one coded
Core courses are intended to              in central and commercial banking,         F. Indicative lists of available
provide the basic tools for the           and in the broader financial sector.        seminars are provided below,
subsequent courses and the thesis         They are typically taught by central       together with short descriptions.
work. As such, they are required          bankers and practitioners in the
for all students. Three courses           banking and financial sector. While        • The thesis seminar provides an
provide the necessary background in       core and elective courses draw              opportunity to final-semester
Macroeconomics, Microeconomics,           on the research expertise of the            students working on their thesis
and Econometrics. Two courses             Goethe faculty, topical courses             to present their research to faculty
are devoted to Asset Pricing and          take advantage of our location by           and to their student colleagues
to Corporate Finance. Short               drawing on our extensive links to           and to get useful feedback and
descriptions of core courses are          financial institutions in Frankfurt.         guidance on completing an
provided below.                           Students are expected to take two           interesting and relevant piece of
                                          topical courses with code M and             work. Each student is expected
Electives are chosen from two lists       two with code F. The list of topical        to take part in one thesis seminar
of available courses, one coded M         courses provided below is indicative.       with students working on related
and one coded F. These courses            It is expected that the list will be        topics. Thesis seminars will
are intended to provide advanced          revised more frequently than the list       typically be offered as ‘block
specialized knowledge in areas that       of electives, in our effort to focus on     seminars’, during a 1-4 day period.
should be chosen by the student           current issues and state-of-the-art         Like field seminars, they will often
with a view to future career plans.       practices.                                  be held in conference-like settings
Results from recent, cutting-                                                         that combine productive academic
edge research in these areas are          Seminars are of two types:                  interaction with some recreational
distilled in order to extract lessons     • Field seminars encourage students         possibilities.
relevant for banking and financial           to read, think, and work exten-
practice, as well as for policy design.     sively on a topic of interest to        Master’s thesis research is
Students are required to have               them and then to present their          conducted during the last semester
completed three courses from each           work together with all other            of the program (during the last
list by the end of the program.             students. A seminar provides a          year of the part-time program),

under the supervision of a Chair      some original work. A typical thesis      challenging issues. With the consent
contributing to the MMF Program.      will provide an original, critical        of the Professor of the supervising
Mutual consent of the student and     synthesis of existing research, as well   Chair, it is possible to complete the
of the Chair Professor is required    as evidence of some new research          thesis without being resident in
for supervision. The thesis is a      undertaken by the student using           Frankfurt. If this option is chosen,
substantive piece of work that        relevant theoretical or empirical         the student should keep in close
demonstrates in-depth familiarity     methods. The thesis should meets          contact with the supervising Chair,
with a particular topic in monetary   high academic standards and signals       as needed for completion of the
economics, finance, or their           to future employers the student’s         thesis, and should also participate in
interaction, as well as ability for   potential for independent work on         the relevant thesis seminar.

4. Full-time versus Part-time Study

The Master’s program can be                            Failure to pass all core courses as      retake the specific course when
completed either with full-time                        planned in the schedules for full-       it is offered again or to substitute
or with part-time study. Course                        or part-time study (see tables) or       it with another course under the
attendance is mandatory, and there                     to complete the program within           relevant category. In making this
is no distance-learning option                         the maximum allowable time               choice, students are encouraged
(except for the provisions regarding                   (see below) results in automatic         to consult with the instructors
Master’s thesis research). It is                       expulsion from the program.              in order to make sure that the
required that part-time students be                    Failure to pass an elective, a           course they intend to repeat or use
able to make arrangements with                         topical course or a field seminar         as replacement is offered in the
their employers in order to attend                     requires the student to either           relevant semester.
lectures or classes, some of which
may be scheduled during normal
working hours.
                                                          1st semester                         Core courses

The normal duration of the full-time                                                           Fundamentals of Macroeconomics (6)
program is 4 semesters. Students are                                                           Fundamentals of Microeconomics (6)
                                                                                               Fundamentals of Econometrics (6)
not required to stay in Frankfurt
                                                                                               Capital Markets and Asset Pricing (6)
during the fourth semester,                                                                    Corporate Finance and Valuation (6)
provided that they have met all
                                                          2nd semester                         Electives
other requirements and they are
working on their thesis. They                                                                  Elective 1 (6)
are required to attend the thesis                                                              Elective 2 (6)
seminar, which will be offered as a                                                            Elective 3 (6)

block seminar over 1-4 days.                                                                   Topical Courses

The normal duration of the part-time                                                           Topical Course 1 (3)
                                                                                               Topical Course 2 (3)
program is 8 semesters. Students are
not required to stay in Frankfurt                                                              Field Seminar (6)

                                                                                                                                           THE SCHEDULE OF A FULL-TIME STUDENT*
during the seventh and eighth
                                                          3rd semester                         Electives
semesters, provided that they
have met all other requirements                                                                Elective 1 (6)
and they are working on their                                                                  Elective 2 (6)
thesis. They are required to attend                                                            Elective 3 (6)

the thesis seminar, which will be                                                              Topical Courses
offered as a block seminar over
1-4 days.                                                                                      Topical Course 1 (3)
                                                                                               Topical Course 2 (3)

If a student fails a core course,                                                              Field Seminar (6)
the student has to pass the
                                                          4th semester                         Thesis Seminar (6)
makeup final exam at the start                             (Frankfurt residence not required)
of the following spring semester.                                                              Master’s Thesis (24)

*(credit points in parentheses, total of 120 points)
                                                                            Track A                                              Track B

                                       1st semester                         Fundamentals of Macroeconomics (6)                   Capital Markets and Asset Pricing (6)
                                                                            Fundamentals of Microeconomics (6)                   Corporate Finance and Valuation (6)
                                                                            Fundamentals of Econometrics (6)                     Fundamentals of Econometrics (6)

                                       2nd semester                         M Elective 1 (6)                                     F Elective 1 (6)
                                                                            M Topical Course 1 (3)                               F Topical Course 1 (3)
                                                                            M Field Seminar (3)                                  F Field Seminar (3)

                                       3rd semester                         Capital Markets and Asset Pricing (6)                Fundamentals of Macroeconomics (6)
                                                                            Corporate Finance and Valuation (6)                  Fundamentals of Microeconomics (6)

                                       4th semester                         F Elective 1 (6)                                     M Elective 1 (6)
                                                                            F Topical Course 1 (3)                               M Topical Course 1 (3)
                                                                            F Field Seminar (3)                                  M Field Seminar (3)

                                       5th semester                         M Elective 2 (6)                                     M Elective 2 (6)
                                                                            F Elective 2 (6)                                     F Elective 2 (6)
                                                                            M Topical Course 2 (3)                               F Topical Course 2 (3)

                                       6th semester                         M Elective 3 (6)                                     M Elective 3 (6)
                                                                            F Elective 3 (6)                                     F Elective 3 (6)
                                                                            F Topical Course 2 (3)                               M Topical Course 2 (3)

                                       7th semester
                                                                            Master’s Thesis Research
                                       (Frankfurt residence not required)

                                       8th semester                         Thesis Seminar (6)
                                       (Frankfurt residence not required)
                                                                            Master’s Thesis (24)

                                       The maximum duration of full-time              a passing grade in any of the five       medical reasons) and cannot
                                       study is 6 semesters. Failure to obtain        core courses after the makeup           result in a total time since initial
                                       a passing grade in any of the five              final examination or to meet the         registration that exceeds the
                                       core courses after the makeup                  requirements for the MMF by the         maximum duration for the full- or
                                       final examination or to meet the                end of the twelfth semester results     part-time program.
                                       requirements for the MMF by the                in expulsion from the program.
                                       end of the sixth semester results in
                                       expulsion from the program.                    A leave of absence interrupts the
                                                                                      normal schedule, but is given
                                       The maximum duration of part-time              only in exceptional circumstances
                                       study is 12 semesters. Failure to obtain       (typically for well-documented

                                                                                                                            *(credit points in parentheses, total of 120 points)
5. Course descriptions

 Core Courses                           Fundamentals of Microeconomics             will discuss a series of institutional
                                        Based on a firm understanding               and methodological issues required
                                        of the theory of the firm and the           to understand the more advanced
M Core                                  household, the course covers issues        problems which are addressed in
                                        like regulation, welfare effects           subsequent semesters. These issues
Fundamentals of Macroeconomics          of government induced price                include: Utility theory, modern
This core course introduces             distortions, and the theory of market      portfolio theory, asset pricing models,
basic concepts and key tools that       failures. The course provides modern       and option pricing theory.
are central to understanding of         tools and shall enable students to
macroeconomic issues, ranging from      understand and work with scholarly         Corporate Finance and Valuation
short-term economic fluctuations         articles in areas like public finance       It is the objective of this one-semester
to long-term growth. Students           and industrial organization.               core course to provide students with
will learn how models are used to                                                  an overview of the modern theory
understand key empirical facts in       Fundamentals of Econometrics               of finance and to equip them with
macroeconomic data, how to use          The core course in Econometrics            the most important conceptual
mathematical tools for the analysis     introduces the methods behind the          instruments in the field of financial
of model economies, how to develop      empirical analysis of micro- and           economics required for other, more
and use the most common models          macro-data as they are encountered         application-oriented courses. Issues
for understanding the relationship      in cross-sectional and time series         to be covered include: Corporate
between aggregate output, inflation      studies, respectively. Application of      valuation (DCF, WACC, APV, real
and interest rates and the key          these methods will be demonstrated         options), information and incentive
drivers of macroeconomic growth         with real data examples solved             problems in financial contracting,
and cycles, and how to develop          with standard computer software.           (adverse selection, moral hazard,
policy recommendations and              Students learn how to carry out            incomplete contracts), financial
conduct practical policy analysis.      empirical studies of the nature of         intermediaries and markets (financial
At the end of the course, students      economic relationships. The course         relationships, delegated monitoring,
should be able to apply the modern      presumes that students are familiar        and shareholder value), the role of
macroeconomist‘s toolkit to             with linear regression models and          ownership and corporate governance
macroeconomic questions of current      material from elementary eco               (organization, compensation and
importance. While the course            nometrics or empirical economics.          market discipline). These issues will
makes frequent use of mathematics,                                                 be discussed by means of examples
mathematical expertise is not a                                                    and case studies.
goal in itself: Mathematics provides    F Core
a systematic approach for making                                                   Electives, Field Seminars, and
sense of complicated economic           Capital Markets and Asset Pricing          Topical Courses
relationships. The course includes      The core course on Capital Markets         The following is an indicative list.
a mathematical review of concepts       and Asset Pricing is designed to           Not all courses are necessarily
needed for modern macro analysis,       provide a solid understanding of           offered every academic year; and
as well as problem sets with practice   theoretical concepts related to capital    the program may be enriched with
questions.                              markets and to equip students with         further courses when appropriate
                                        practical application skills. The course   and feasible.

 Electives                               Financial Structure and Monetary        gap, interest rates and the Taylor
                                         Transmission                            rule, the monetary transmission
                                         This course focuses on the role of      mechanism, the term structure of
M Electives                              financial intermediaries and financial    interest rates, the role of money
                                         markets in the transmission of mone-    in monetary policy, and monetary
Topics in Money and                      tary policy. In the first half, models   policy committees.
Macroeconomics                           of financial intermediaries based on
This course focuses on selected topics   asymmetric information between          International Macroeconomics
in monetary economics of current         borrowers and lenders are developed     This course will cover three
interest. Students are introduced to     and integrated in macroeconomic         main topics. In the first part we
monetary models of the economy           models. These models are then used      introduce basic concepts and
using formal analysis. They will learn   to study the role of borrowers’ net     theories of modern international
quantitative methods for applying        worth or collateral in propagating      macroeconomics, like the
such models to current policy            and amplifying economic fluctua-         determination of the current
questions. For example, the course       tions. The second half of the course    account, international prices, and
covers New-Keynesian models              focuses on monetary policy trans-       the role of international financial
with price and wage rigidities.          mission through the term structure      markets. The main framework of
The models are implemented and           of interest rates. Term structure       the analysis is the inter-temporal
simulated using Matlab. Possible         models are introduced to explain        approach to the current account.
questions to be addressed include the    term premia as driven by either         We will start by deriving the current
design of monetary policy rules, the     unobserved or macroeconomic             account equation for a small open
interaction of fiscal and monetary        factors. These models are then used     economy with one good, one
policy, international spillovers and     to jointly forecast the macroeconomy    internationally traded asset in the
exchange rate dynamics.                  and the yield curve.                    deterministic case. We will therefore
                                                                                 add uncertainty, investment, durable
Monetary Theory and Policy               Central Bank Watching                   goods, government expenditure,
The course “Monetary Theory and          This course reviews how central         endogenous labour supply. For
Policy” addresses monetary policy        banks go about determining what         each of those cases we also discuss
issues from both a theoretical and a     level of interest rates to set. Since   the testable implications of the
policy-oriented perspective. Topics      prices of financial securities depend    theory. At last, we move to the
include the determinants of money        on the level of interest rates, which   two good model and discuss the
supply and money demand, issues          is largely determined by the central    Harrod-Balassa Samuelson effect.
in monetary policy implementation,       bank, “central bank watching” is a      In the second part we will move
real effects of inflation and various     big industry in the financial sector.    to the international real business
aspects of the monetary transmission     Understanding the process leading       cycle literature. The goal of this
mechanism. Using recent New-             to interest rate decisions is also      research is to understand and
Keynesian models, we discuss the         important for financial journalists      explain business fluctuations and
role of time-consistency and of          and those working in central banks.     their international transmission.
credibility for the conduct of optimal   Core topics include: the framework      We will first introduce the basic
monetary policy.                         of monetary policy, measuring           model of international real business
                                         inflation, measuring the output          cycle (Backus, Kehoe and Kydland

JPE 1985) which is a stochastic         the end of the course participants        products) and for monetary policy
dynamic general equilibrium             should feel comfortable to do             design (e.g. assessing distributional
model with endogenous labour            independent, economic theory              effects of policy changes).
supply and two goods aggregated         based empirical work using time
via an Armington aggregator.            series and panel data as arising in       The Economics of Taxation
After discussing the implications       many areas of macroeconomics              Tax measures are ubiquitous and
of this model we will overview          and finance. The course presumes           form important tools of public
the major puzzles in international      that participants have mastered           policy with often large behavioral
macroeconomics: Feldstein-Horioka,      the material in the first-year core        effects. The course provides a sound
the home bias in consumption and        courses in macroeconomics and             understanding of the allocative and
home bias in investment, Mussa          macroeconometrics.                        distributional effects of taxation and
puzzle, disconnect puzzle, Backus-                                                deals with topics like international
Smith puzzle, output-investment-        Household Finance                         taxation, environmental taxation
employment correlation puzzle.          This course presents topics in the        and the optimal income tax.
Finally we will briefly introduce the    rapidly growing area of Household
most recent new open economy            Finance, on the interface between         Fiscal and Tax Policy in the EU
literature whose models depart from     Macroeconomics and Finance.               The course presents the economics
the international RBC literature        Households are increasingly involved      of the European Union from a
because of the addition of nominal      in portfolio choice and management,       public finance perspective. Special
frictions.                              especially since governments are          attention is given to issues like
                                        shifting to them responsibilities         decision making in the EU, tax
International Money and Finance         for financing retirement in view           harmonization, EU expenditures, the
This elective course provides (i) a     of the demographic transition.            subsidiarity principle, and optimal
thorough yet accessible presentation    The course focuses on theoretical         fiscal federalism. The course is
of the methods that econometrics        and empirical analysis of factors         designed to give an understanding
currently has to offer to analyze       influencing household choices              for the developments and institu-
time series and panel data in           regarding participation, as well as       tions in these policy areas and to
international money and finance          levels of holdings, in various types      allow students to evaluate policy
and (ii) a discussion of models of      of assets and of debts, including         options for the future.
exchange rate determination that        stocks, private businesses, housing,
are at the core of the open economy     and credit card debt. Emphasis
macroeconomics literature. The          is placed on use of modern                F Electives
course emphasizes the hands-on          household-level data bases, and
application of the methods and          on international comparisons              Advanced Corporate Finance
models discussed to empirically study   made possible by such data (using         This elective course is designed
the dynamics and determination of       STATA). Lessons regarding the             to provide students with a deep
exchange rates. A number of classes     role of household characteristics,        knowledge of the modern theory
will therefore take place in the PC     attitudes, and financial sophistication    and practice of corporate finance
laboratory (using STATA), and           in determining financial behavior are      and to confront them with the
course participants are expected to     useful both for financial practice (e.g.   most important policy and research
complete assignments in STATA. At       design and marketing of financial          questions currently debated in the

field. It builds upon the material         (“greeks”), exotic options, and           a main ingredient in pricing and
covered in the two first-year core         numerical methods. Furthermore,           evaluating credit risk. This section
finance courses and discusses a            the course contains a discussion of       includes state-of-the-art industry
series of important corporate finance      more sophisticated approaches to          models like KMV’s EDF® model.
issues, structured around the life-       option pricing, including stochastic      Another part of the course concerns
cycle of the firm. Starting with           volatility. Another topic will be risk    the application of modern portfolio
entrepreneurial issues including          management with derivatives, with a       management approaches for credit
start-up and firm growth (staging),        special emphasis on interest rate and     risk. Students will learn how some
it then turns to the classical areas of   credit risk. Finally, the course offers   selected industry models are used for
the mature firm, i.e. optimal leverage     an introduction to the valuation of       the optimization of credit portfolios
ratio, and of decisions of going          real options, i.e. contingent claims      and the analysis of securitization
public and going private, together        embedded in investment projects.          transactions. The course also covers
will its corporate governance                                                       briefly regulatory aspects like the
implications. The last section of         Commercial Banking                        new capital adequacy requirements
the course discusses the new role         Product innovations such as               of Basel II.
of financial markets in corporate          credit derivatives and asset
decision making, as it is prevalent in    backed securities as well as new          Integrated Risk Management
much of the current debate on, e.g.       approaches for pricing and portfolio      This course addresses how corpora-
merger and acquisitions, leveraged        management have made credit               tions should manage the risks they
buy-out, outsourcing, or financial         risk management one of the                face. The focus is on developing
restructuring. These issues will often    hottest and most important topics         an integrated approach that looks
be discussed by relying on various        in today’s capital markets. This          upon risk management as a part of
financial instruments and strategies,      course introduces students to the         corporate strategy.
like bank debt, leasing, market           major concepts and instruments for
equity, and options. There is an          the management of credit risk in          As part of their business, firms
emphasis on empirical work, both          both capital markets and banking          constantly take, or are exposed
in the literature and in applications     institutions. Students will become        to, risks. However, they also have
during the course. Students are           familiar with the products used           varied possibilities to deal with these
required to work out several tailored     in today’s credit markets such as         risks. They can attempt to avoid
cases that will require (or contribute    corporate bonds, convertible bonds,       or reduce risk, transfer it by using
to) a deeper understanding of             collateralized debt obligations           insurance or derivatives, or bear
empirical methods.                        (CDO’s), asset backed securities          the risk themselves and adapt their
                                          (ABS) and several kinds of credit         capital structure or increase their
Derivatives                               derivatives like for example credit       operational flexibility accordingly.
This elective course focuses on           default swaps (CDS). The course           Participants of this course will study
valuation of derivative securities.       discusses the application of these        the potential consequences of risk
Topics include an introduction            products as well as pricing issues for    for the operations of a firm, learn
to the different instruments and          the purpose of credit risk trading.       to identify and assess single risks,
their payoffs, the binomial and           Students will also learn how internal     potential interactions between
the Black-Scholes model, implied          and external rating methods are           risks, and the aggregate risk of a
volatility, option sensitivities          used by banks and investors as            corporation, and understand how

frictions in the insurance market and    companies, pension funds). Among         mastered the material in the first-
the capital market determine the         the subjects covered are: the            year core courses.
optimal risk management strategy.        portfolio construction under shortfall
The course targets not only students     risk constraints, the use of multi-
who later want to work in risk           factor models in asset management,        Field Seminars
management but also those with           modeling investment risks, as well
in interest in corporate finance and      as strategic, tactical, and dynamic
corporate strategy.                      asset allocation techniques of           M Field Seminars
                                         internationally diversified portfolios.
International Banking:                   Moreover we look on the asset            Monetary and Fiscal Stabilization
Financial Systems                        liability management strategies          Policies
The course first covers financial          of pension funds, and retirement         This seminar focuses on current
systems and especially banking           income planning techniques for           research on monetary and fiscal
systems in different industrialized      individual investors. Further            stabilization policies. First, the
countries such as Germany, UK,           topics include the application of        empirical evidence regarding the
USA, and France. The overriding          derivatives in portfolio management.     actual practice of monetary and
question is the extent to which these    Complementary exercises and case         fiscal policies and their effects on
banking and financial systems differ      studies focus on deepening the           the economy is reviewed. Then,
between countries and whether            participants‘ grasp of the subject       participants investigate how
there is a general convergence of        by offering hands-on practical           dynamic general-equilibrium
financial systems. The course then        experience.                              models may be used to obtain
studies banking and finance in                                                     a deeper understanding of the
developing and transition countries.     Stochastic Calculus in Finance           transmission channels and
After looking at the relationship        and Econometrics                         interactions of monetary and fiscal
between finance and development           This elective course discusses           policies. Finally, practical questions
and development aid policies             stochastic processes and stochastic      of fiscal and monetary policy
that try to foster sound financial        integrals constructed from Wiener-       design are studied on the basis of
development in developing and            processes. In particular, Ito’s Lemma    macroeconomic models and the
transition countries, the course         is treated, and conditions for           available empirical evidence.
takes a close look at micro and small    convergence to stochastic integrals
enterprise finance in these countries.    are studied. At the end of the           International Money and Finance
                                         course students will be able to solve    The seminar will give participants
Advanced Investment and                  stochastic differential equations        the opportunity to engage in a
Pension Finance                          which are used to model dynamics,        substantive empirical project in
The objective of this elective course    e.g. interest rate dynamics in           international macroeconomics or
is to familiarize students with the      mathematical finance. Moreover,           international finance using time-
advanced concepts and techniques         the limiting distribution theory of      series and/or panel data techniques,
of modern investment management.         modern time series econometrics          with the benefit of continuous
The perspective will be mainly that      (nonstationary and cointegrated time     feedback and advice. Rather
of institutional investors (e.g. asset   series) will be presented. The course    than providing a discussion of
management companies, insurance          presumes that participants have          results presented in the literature,

participants are expected to collect     and the associated investment             Topical Courses
their own data set, carry out an         strategies.
econometric analysis of this data set,
and discuss the economic relevance       Selected Topics in Corporate             M Topical Courses
of their results. The seminar            Finance
presumes that participants have          The seminar deals with various           The Euro and the Conduct of
mastered the material in the course      financial instruments and strategies.     Monetary Policy in the Euro Area:
International Money and Finance.         The form is either on theoretical or     Livio Stracca (ECB)
                                         empirical work. Students have to         After briefly reviewing the
Household Saving, Borrowing,             write, present and defend a seminar      consensus model used in monetary
and Portfolios                           thesis.                                  policy making, the course deals
The seminar deals with recent                                                     with the role of asset prices and
research topics in Household             Selected Topics in Banking               of monetary and credit aggregates
Finance. Topics include household        The seminar deals with portfolio         in policy-making. It discusses
participation in asset markets,          management and long term wealth          the institutional setting for the
portfolio shares and portfolio           management. The form is either           conduct of monetary policy, the
changes over the life cycle,             on theoretical or empirical work.        monetary policy strategy of the
portfolios of the rich and of the        Students have to write, present and      ECB, and its main criticisms. It then
elderly, international comparisons,      defend a seminar thesis.                 describes key features of the Euro
stock trading behavior of                                                         area economy and evaluates its
households, co-existence of debts        Selected Topics in Asset                 performance following adoption of
and assets in household portfolios,      Management and Pension                   the Euro, including prospects for
household investment mistakes,           Finance                                  convergence and divergence. The
and the role of behavioral factors in    The seminar deals with recent topics     course concludes with an analysis
portfolio choice.                        in Asset Management and Pension          of the international role of the Euro
                                         Finance. Topics include the calculus     and issues related to Euro area
                                         of retirement income planning,           enlargement.
F Field Seminars                         investment and risk management
                                         of pension funds, strategic, tactical,   Exchange rate economics and
Selected Topics in Derivatives           and dynamic asset allocation             policy: Christian Thimann (ECB)
The seminar deals with the               (CPPI, risk controlled total return      Exchange rates are among the most
valuation, hedging and application       strategies). The seminar deals also      important economic variables,
of derivative securities. Topics         with the management of specific           having a macroeconomic, monetary
include (but are not limited             asset classes like equities, fixed        and financial dimension. They affect
to) numerical methods for the            income, real estate, and alternative     relative prices between economies,
pricing of exotic options, models        investment like hedge funds.             as well as international trade and
for interest rate and credit risk,                                                finance, with the foreign exchange
hedging problems on incomplete                                                    market being in terms of turnover
markets and in discrete time, model                                               the largest market world wide.
implementation in VBA, specific                                                    This course provides a foundation
properties of hedge fund returns                                                  of exchange rate economics and

policy. It starts from key concepts     Monetary transmission:                  asset price channel (including the
of exchange rate determination          Theory and Evidence:                    role of house prices), the exchange
and reviews the linkages between        Andreas Worms (Bundesbank)              rate channel and others. Here, we
exchange rates, the balance of          The course covers a broad range         will discuss the theory as well as
payments and the real economy.          of issues around the monetary           some econometric methods which
The course then provides insights       transmission process with a special     are commonly used to identify such
into policy aspects of exchange rate    focus on empirical work. It is          channels in empirical analysis, such
economics, including exchange rate      intended to supply the participants     as dynamic panel and cointegration
regimes; currency crises; currency      with the main theoretical models of     analysis.
unions and optimum currency areas;      the monetary transmission process in
international role of currencies; and   general and the different monetary      Fiscal policies in EMU:
the international policy framework      transmission channels in specific,       Theory and Practice:
dealing with exchange rates such as     as well as the main stylized facts      Ludger Schuknecht (ECB)
the G7.                                 on these issues with a focus on the     Fiscal policies are seen as a
                                        Euro Area evidence. Moreover,           particular challenge for Monetary
Central Bank Transparency:              it is intended to quickly touch         Union: sound public finances are
Michael Ehrmann (ECB)                   upon some econometric methods           key for price stability-oriented
Over the last decades, central banks    commonly used in monetary               monetary policies but responsibility
have undergone a long journey           transmission analysis. We will start    remains in the hands of individual
from secretive to transparent           with the general identification          governments. Government deficits
institutions; nowadays, they            problem of monetary policy shocks       and debt, and aging costs are high
emphasise predictability of their       and discuss several methods which       in many member countries but at
actions as an important ingredient      are used in the literature to tackle    the same time the financial crisis has
of their task, compared to a conduct    this issue. We will then discuss the    raised calls for more expansionary
of monetary policy that has often       possibility to estimate the general     policies. The Stability and Growth
largely surprised the public in the     transmission process from monetary      Pact defines a framework for
not too distant past. The course        policy to output and prices using       fiscal policies in EMU but how
reviews the reasons for this            the VAR technology and impulse          does it work in practice? The
development, and its effects on         response analysis. Here, several        course will discuss the theoretical
the efficiency of monetary policy.       identification strategies for the        underpinnings, empirical evidence
It covers the current practices of      structural shocks (e.g. Choleski        and practical considerations that
central banks, and discusses the        decomposition, Blanchard-               surround fiscal policies in EMU.
optimal level of transparency,          Quah long-run restrictions, sign-
related for instance to the             restrictions) could be discussed.
announcement and quantification          Then, we will discuss the key
of central bank objectives              role of expectations for monetary
and strategies, central bank            transmission and the econometric
communication, the explanation          problems they create. Next, we will
of monetary policy decisions or         talk about the main transmission
the release of central bank‘s own       channels, such as the cost-of-capital
interest rate forecasts.                channel, the credit channels, the

F Topical Courses                       Theory). Decision Theory represents         (e. g. as part of Economic Capital)
                                        a building block of almost all              and as an important part of decision-
Modern Portfolio Management:            economic models. The theory offers          making of senior executives. This
Thomas Stephan                          a rich collection of techniques and         course outlines the definition of
(RCM - Allianz Global Investors)        procedures to reveal preferences            those risk types, the methodologies
This course aims at equipping           and to introduce them into models           typically used by banks as part of
students with the most relevant         of decision. Furthermore, a brief           the respective risk management
fundamental methods of modern           introduction to decisions making            processes, as well as the regulatory
Quantitative Portfolio Management.      of non-cooperative interacting              requirements influencing those
While thoroughly introducing the        individuals (Game Theory) shall             frameworks. The current crisis
theoretical concepts, the particular    also be a part of this course. This         shows that a silo-based view of the
focus of this lecture will be on        course serves as an introductory            various risk types may be insufficient.
aspects of their implementation in      methodical course and allows                Therefore, the holistic view is
the investment practice. We will        students to gain a sound knowledge          included as well. The focus of the
look at strategic as well as tactical   in rational decision making.                lectures is on practical examples
asset allocation for equity and                                                     of what governance structures,
bond portfolios, portfolio insurance    Management of Emerging Risk                 reporting processes, risk assessment
strategies and the fundamentals of      Types - Risks beyond Market and             methodologies, and decision-making
asset-liability management. Another     Credit Risk: Gerrit van den Brink           process look like, and only to a lesser
focus of the course is on passive and   (ValueData7 GmbH) and Thomas                degree on quantitative aspects of risk
active equity portfolio management.     Kaiser (KPMG)                               management.
The course is completed by an           Risk management in banks has
introduction into risk models.          focused on market and credit risk           Strategic Asset Allocation in
                                        for the last decades. However, it           Practice: Ken Nyholm (ECB)
Decision Theory:                        has become more and more clear              This course will treat „strategic asset
Reinhard H. Schmidt                     that this is probably just a small          allocation“ from a practical point of
(Goethe University)                     part of the risks banks are facing.         view. It will show how financial and
Modern Decision Theory has              Operational risk (which is a focus          econometric tools can be used to
developed since the middle of the       area of the lecture series) has gained      help design investment strategies for
20th century through contributions      in importance both due to a changing        longer time-horizons. We will see
from several academic disciples. It     banking environment, several multi-         how econometric techniques such
is the theory of decision making by     billion EUR losses in the past, and         as vector autoregressive models and
rational individuals taken alone,       last but not least the regulatory focus     regime switching models can be
in competition, and in groups.          due to Basel II, the CRD and the            used to generate return projections
There are two main streams in the       national implementations thereof.           for financial instruments, how
decisions theory: the normative         Liquidity risk has become a burning         business cycle dynamics can be
(prescriptive) Decision Theory and      issue these days with the financial          integrated into the investment
the behavioral (or descriptive)         crisis. Business risk, strategic risk and   framework and how financial
Decision Theory. This course focuses    reputational risk have also gained          models such as the Capital Asset
on the normative decision theory        acceptance, both as a component             Pricing Model (CAPM) can be used
for individuals (Traditional Decision   of Basel II Pillar II frameworks            to derive optimal asset allocations.

6. Faculty
                               Prof. Michael Binder, PhD
                               Michael Binder is Professor of Macroeconomics at          “International Economics” at the Center for Financial
                               Goethe University and co-director of the PhD program      Studies (CFS), an associate editor of the Journal
                               in Economics. He received his PhD in economics            of Applied Econometrics, the Journal of Economic
                               from the University of Pennsylvania in 1995. Prior        Dynamics and Control and Empirical Economics,
                               to joining the faculty of Goethe University in April      as well as a CESifo Research Fellow. His current
                               2003 he was a faculty member at the University of         research focuses on the analysis of cross-country
                               Maryland. He has held visiting appointments inter alia    variations in macroeconomic performance, as well as
                               at Cambridge University, the International Monetary       the investigation of econometric and computational
                               Fund, the World Bank and the Bank of Spain.               methods for rational expectations and dynamic panel
Prof. Michael Binder, PhD
                               He is currently director of the research program          data models.

                               Prof. Ester Faia, PhD
                               Ester Faia received her Ph.D. from New York               is currently also an associate editor of the Journal
                               University in 2002. Prior to joining the faculty          of Economic Dynamics and Control. Her research
                               of Goethe University in October 2008 she was a            focuses on the role of real frictions (financial, labour
                               faculty member at the Universitat Pompeu Fabra            and product market frictions) for monetary policy
                               and University of Rome. She has held visiting             both in open and closed economy DSGE models. She
                               appointments inter alia at Bank of England, European      has published in the: Journal of Monetary Economics,
                               Central Bank, European University Institute, Norges       Journal of Money, Credit and Banking, Journal of
Prof. Ester Faia, PhD          Bank, Kiel Institute for the World Economy. She           Economic Dynamics and Control, etc.

                               Prof. Stefan Gerlach, PhD
                               Stefan Gerlach joined the Institute for Monetary          positions in the research area of the BIS. In 1992
                               and Financial Stability at Goethe University as           he was awarded tenure at Brandeis University as
                               Professor of monetary economics in September 2007.        Associate Professor of Economics. He received an
                               Before joining the university, he served as Head of       undergraduate degree from the University of Lund
                               Secretariat of the Committee on the Global Financial      in Sweden in 1979 and a doctorate in economics
                               System, a committee of senior central bankers at the      from the Graduate Institute of International Studies
                               BIS in Basel. In 2001-2004 was Executive Director         in Geneva in 1983. He has written extensively in the
                               (Research) at the Hong Kong Monetary Authority            areas of monetary theory and policy, and is a research
Prof. Stefan Gerlach, PhD
                               and Director of the Hong Kong Institute for Monetary      fellow of the CEPR and a fellow of the CFS.
                               Research. Between 1992 and 2001 he held various

                               Prof. Michael Haliassos, PhD,
                               MMF Program Director
                               Michael Haliassos is Professor of Macroeconomics and      portfolio choice, stockholding, consumer debt, the
                               Finance and Deputy Dean for International Relations.      distribution of wealth, mature portfolios in aging
                               He did his undergraduate studies at the University of     economies, and the role of financial advice. He is
                               Cambridge and received his PhD from Yale University.      currently director of the research program “Household
                               Prior to joining Goethe University, he was faculty        Wealth Management” at CFS, Research Professor at
Prof. Michael Haliassos, PhD   member at the University of Maryland, and then at         the Mannheim Institute on the Economics of Aging
                               the University of Cyprus where he served as Deputy        (MEA), and international research fellow at NETSPAR
                               Dean of the School of Economics and Business.             (The Netherlands). He has served as consultant to
                               He has repeatedly visited the European University         the ECB Task Force and then Network, which set up
                               Institute as Part Time Professor. His research focuses    the Eurozone database on Household Finances and
                               on household finance, with emphasis on household           Consumption.

                               Prof. Dr. Uwe Hassler
                               Uwe Hassler is Professor for Statistics and Econometric   of Berlin. Prior to joining Goethe University in April
                               Methods. He received his Doctorate in 1993 and his        2003 he was Professor for Empirical Economics at
                               habilitation in 1998, both from the Free University       the Technical University Darmstadt, and he has
Prof. Dr. Uwe Hassler

                               visited the Universities in Munich and Madrid. His        macroeconometrics, in particular long memory,
                               main research interests are time series analysis and      (co)integration and nonstationary panels.

                               Prof. Dr. Roman Inderst
                               Roman Inderst currently holds the endowed chair           economics as well as MAs (Diplom) in economics
                               of Finance and Economics at Goethe University of          and sociology. He is a business graduate (BA) from
                               Frankfurt. He is a microeconomist specializing in         the ESB (Reutlingen) and has previous working
                               competition policy, market design and corporate           experience in the areas of banking, advertising and
                               finance. His previous positions include those of           strategy consulting. He has published extensively
                               Full Professor of Economics and Full Professor of         at the highest level and has gained international
Prof. Dr. Roman Inderst
                               Accounting and Finance at the London School of            recognition in the fields of corporate finance, banking,
                               Economics, and that of Associate Professor at INSEAD      competition policy and economic theory alike.
                               Business School. Inderst holds a Doctorate in

                               Prof. Dr. Jan Pieter Krahnen
                               Jan Krahnen holds the Chair of Corporate Finance at       on relationship lending and financial intermediation,
                               GoetheUniversity since 1995. He is also Co-Director       and on the role of public ratings for observed market
                               of the Center for Financial Studies, a non-profit          values. Jan Krahnen has published extensively in the
                               research institution in Frankfurt, and a CEPR-            field of Corporate Finance and Banking. The most
                               research fellow in Financial Economics. He is on the      recent publications have appeared in the Journal
Prof. Dr. Jan Pieter Krahnen   Steering Committee of the ECB-CFS research network        of Financial Intermediation, Journal of Banking
                               initiative „Capital markets and financial integration in   and Finance, Experimental Economics. He is on the
                               Europe“. Current research focuses on modeling and         Editorial Board of the Journal of Banking and Finance
                               measuring risk transfer in securitization markets,        and the Journal of Financial Services Research.

                               Prof. Thomas Laubach, PhD
                               Thomas Laubach received his PhD from Princeton            at Rutgers University and has taught at Johns Hopkins
                               University in 1997. Prior to joining the faculty of       University. His current research focuses on the role
                               Goethe University in April 2008, he was an economist      of learning and other departures from complete
                               at the Federal Reserve Bank of Kansas City, and           information in macroeconomic models, and on the
                               then an economist at the Federal Reserve Board in         role of financial structure as impulse and propagation
Prof. Thomas Laubach, PhD
                               Washington, DC. He has held a visiting appointment        mechanism in macroeconomic fluctuations.

                               Prof. Dr. Christian Laux
                               Christian Laux received his Doctorate in Finance at       (where he also completed his habilitation) and at
                               the Goethe University in 1995. Before joining the         the London School of Economics. Since 2001 he is
                               faculty of Goethe University in October 2002 he was       secretary of the “Verein für Sozialpolitik” (German
                               at Harvard University, the University of Mannheim         Economic Association).

                               Prof. Dr. Raimond Maurer
                               Raimond Maurer completed his dissertation and             choice, real estate investments, and pension finance.
Prof. Dr. Christian Laux       habilitation in business administration at the Univer-    Maurer has published four books and more than
                               sity of Mannheim. Since 2000 he is Professor for          thirty refereed journal articles. He holds several
                               Investment, Portfolio Management and Pension              professional positions at the Society of Actuaries, the
                               Finance at the Finance Department of Goethe               Association of Certified International Investment
                               University of Frankfurt. His research interests focus     Analysts (ACIIA), and the Pension Research
                               on theoretical and empirical studies of asset manage-     Council at the Wharton School of the University of
                               ment by institutional investors, life-time portfolio      Pennsylvania.

                               Prof. Dr. Christian Schlag
                               Christian Schlag is Professor of Finance in the Finance   academic associations like the American and the
Prof. Dr. Raimond Maurer       department at Goethe University and Director of the       European Finance Association. His research has been
                               Finance PhD program. His main research interests          published in various international finance journals.
                               lie in derivative pricing and equilibrium modeling of     Mr. Schlag is a frequent visitor at European and
                               financial markets. He received his Doctorate from the      American universities, and is engaged in many inter-
                               University of Karlsruhe in 1994 and joined Goethe         national research co-operations. He is a member of
                               University in 1997. He is a member of several             the EUREX Exchange Council.

Prof. Dr. Christian Schlag

                                    Prof. Dr. Reinhard H. Schmidt
                                    Harry Schmidt holds the Wilhelm Merton Chair of         and Trier. He has also been a visiting Professor
                                    International Banking and Finance at the Faculty of     at Stanford, Georgetown (Washington DC),
                                    Economics and Business Administration of Goethe         Wharton (Philadelphia), Bocconi (Milan) and in
                                    University. He is a former Dean of the Department       two universities in Paris. He has published several
                                    and currently serves as the Chairman of the Finance     books and 120 academic articles in German and
                                    Group and as a member of the Academic Senate            international journals and books covering a wide
                                    of the University. He has received his education at     range of topics in economics, finance and business
                                    the Universities of Heidelberg and Frankfurt. Before    administration. Currently, his main research
                                    joining the Frankfurt faculty in 1991, he has been a    interest concerns financial systems in industrial and
Prof. Dr. Reinhard H. Schmidt
                                    professor of Finance at the Universities of Göttingen   developing countries.

                                    Prof. Dr. Mark Wahrenburg
                                    Mark Wahrenburg holds the chair of Banking and          professor at Insead. Prof. Wahrenburg has been
                                    Finance at Frankfurt University. He is also the dean    visiting Professor at the Wharton School of the
                                    of Goethe Business School and responsible for the       University of Pennsylvania, Professor of Finance
                                    Duke Goethe Executive MBA program offered               at the University of Witten/Herdecke and visiting
                                    jointly by Duke University and Goethe Business          Scholar at Harvard. He received a Masters degree
                                    School. In addition, he is a Director of the e-finance   and a PhD from the University of Cologne. His work
                                    lab, a research center that focuses on the impact       has been published in recognized Journals such as
Prof. Dr. Mark Wahrenburg           of technology on the value chain of financial            the Journal of Banking and Finance, European Financial
                                    institutions. He also serves as an adjunct              Management, and Empirical Economics.

                                    Prof. Dr. Uwe Walz
                                    Uwe Walz holds the Chair of Industrial Organization     holds the Chair of Industrial Organization at Goethe
                                    at Goethe University, and is co-Director of the PhD     University. He has published widely in international
                                    Program in Economics. He obtained his Doctorate         journals, most recently on venture capital topics
                                    from the University of Tübingen in 1992, and            and organizational design. His work has appeared in
                                    was visiting research fellow at the London School       journals such as the Journal of Corporate Finance,
                                    of Economics (1992/1993) and the University of          the Journal of Financial Intermediation, the Journal
Prof. Dr. Uwe Walz                  California at Berkeley (1994/ 1995). He completed       of International Economics, the European Economic
                                    his habilitation at the University of Mannheim in       Review, and the Journal of Public Economics. His
                                    1995 and joined the University of Bochum (1995-         main current research focuses on Venture Capital,
                                    1997) as Associate Professor, and the University of     Entrepreneurial Finance, and Contract Theory as well
                                    Tübingen (1997-2000). Since October 2002, he            as on the Economics of Network Industries.

                                    Prof. Dr. Alfons J. Weichenrieder
                                    Alfons J. Weichenrieder received his Doctorate in       the Oxford University Centre for Business Taxation
                                    economics in 1995 from the University of Munich         (Saïd Business School), a Research Professor at Ifo
                                    under the supervision of Hans-Werner Sinn and           Institute, Munich, and a CESifo Research Fellow.
                                    Bernd Huber. He taught in Munich, at Princeton          He is editor of FinanzArchiv/Public Finance Analysis
Prof. Dr. Alfons J. Weichenrieder
                                    University and at the University of Vienna before       and associate editor of International Tax and Public
                                    taking up the Chair of Public Finance at Goethe Uni-    Finance. He acted as the scientific chairman for the
                                    versity in October 2002. He is a co-opted member of     2006 meeting of the German Economic Association
                                    the Public Finance Section of the German Economic       (Verein für Sozialpolitik) and for the 2003 meeting of
                                    Association, an International Research Fellow of        the International Institute of Public Finance (IIPF).

                                    Prof. Volker Wieland, PhD
                                    Volker Wieland received his PhD in economics from       Maryland Business School. Since April 2003 he is
                                    Stanford University in 1995. Prior to joining the       Director of the Center for Financial Studies (CFS).
                                    faculty of Goethe University in November 2000 he        Furthermore, he has served as Coordinating Editor of
Prof. Volker Wieland, PhD           spent five years as economist and senior economist       the Journal of Economic Dynamics and Control from
                                    in the Division of Monetary Affairs at the Federal      2002 to 2006 and as Associate Editor of the European
                                    Reserve Board in Washington, DC. At that time he        Economic Review from 2001 to 2004.
                                    also taught as adjunct faculty at the University of

7. Admission Requirements
   and Procedures

MMF applicants should either hold       proficiency for students whose         of course grades (with official
or expect to have by the time of        native tongue is not English and      translations in English or German
enrolment a Bachelor’s degree or        who do not hold a degree or           language, if relevant).
equivalent in the area of Economics,    high school certificate from an        Scanned copies are used for the
Finance or in some related field.        institution with English as the       application process. Originals
Exceptionally strong candidates         main language of instruction.         or certified copies need to be
with quantitative backgrounds can       • TOEFL with a minimum                submitted prior to enrolment.
be considered, even if their field is      score of 580 paper-based,
not directly related to Economics         237 computer-based, 93             More information and entry point
or Finance. In the German system,         internet-based; or                 to the application process are
a Bachelor’s grade of at least 2.5      • IELTS with a minimum score         available on the MMF website.
is required for final admission and        of 7.0.
enrolment into the program.             While documents can be scanned
                                        for application purposes, an         Application Deadlines
Applications are filed online,           original TOEFL/IELTS test score      Prospective students are encouraged
using the relevant link from the        certificate has to be submitted       to apply as early as possible.
MMF website:                            prior to enrolment.                  First round closing date: March 15
http://www.wiwi.uni-frankfurt.          Further information: http://www.     prior to the Winter semester of
de/mmf/ .                     , http://www.ielts.     intended enrolment. Following
                                        org/.                                this first application deadline,
The following items are required for                                         applicants may be notified of early
admission:                             - GRE scores are not required but     (conditional) acceptance, rejection,
                                         are highly recommended. For         or postponement of the decision
- Completed online application,          students interested in spending a   until the second round is also
  including statement of purpose         semester abroad after enrolment     completed.
  (no more than one page)                in the program, GRE scores are
- Two letters of recommendation          required. Further information:      Second round closing date: May 1 prior
  from university faculty members                    to the Winter semester of intended
  who have taught the applicant        - Degree certificates/diplomas         enrolment.
- Evidence of English language           as well as an official transcript

8. Tuition Fees and Scholarships

Tuition fees are at the level           • Other scholarship-awarding            • The University currently offers
mandated by the State of Hessen for       institutions have varying               a scholarship for international
‘consecutive’ programs. This level is     conditions, for example, regarding      degree students who possess
currently zero. Students enrolled in      country of origin, subject,             German language competence
the Master Program are obliged to         previous study achievements,            and who take their degree here,
pay an administrative fee to Goethe       duration of support, etc. A             the “Studienabschlußstipendium”.
University which currently amounts        very quick and efficient way of          You can find more information
to about 250 EUR. This fee includes       finding out about the appropriate        at
unlimited use of public transport in      scholarship is through using the        international/students/funding/
Frankfurt city and the area around        scholarship database of DAAD.           index.html.
Frankfurt.                                For more information, see
In general, German institutions of
higher education do not themselves      • The Goethe Money and Macro
award scholarships. There are how-        Association (GMMA), the
ever, several scholarship-awarding        alumni association of graduates
organizations.                            of the Department of Money
                                          and Macroeconomics, offers an
• The most extensive scholarship          academic prize with monetary
  program is that offered by DAAD         value of 1000 euro to the student
  (German Academic Exchange               with the highest average grade in
  Service). Advanced students may         the first year courses coded M.
  apply for DAAD scholarships, or
  depending on their country of         • Other similar prizes are currently
  origin and subject, in some cases       under negotiation and are likely to
  only graduates may apply.               be announced soon.

9. The Setting

The House of Finance                       wide and is directed by Professors Jan      orientation, and internationality to
The House of Finance aims to               Pieter Krahnen and Volker Wieland.          prepare managers for their myriad
become one of the leading European                       tasks both within their firm and
centers for research and education                                                     across boundaries.
in the field of finance and its              • Institute for Monetary and                The Goethe Business School
interactions with macroeconomics             Financial Stability (IMFS)                offers, inter alia, the Duke Goethe
and law. It brings together research,        The Institute for Monetary and            Executive MBA (EMBA) program
teaching and consulting institutions         Financial Stability (IMFS) was            and the Executive Master of
of Goethe University involving               established by Goethe University          Finance and Accounting (EMFA) as
more than 130 researchers. This              to enhance interdisciplinary              well as seminars, open-enrolment
is expected to generate additional           research as well as economic and          programs and customized corporate
research interactions and potential,         legal counseling on all questions         educational programs. See http://
improve prospects for international,         concerning money, currency and  
interdisciplinary research programs          finances. One of its major goals
and innovative teaching programs,            is the transfer of knowledge from        • Department of Corporate and
and deepen interactions of Frankfurt         the academic community to the              Financial Law: http://www.
faculty with financial institutions and       banking business and the world of
practitioners.                               central banks. It is designed to offer   • Institute for Law and Finance
                                             a platform for scholarly exchange          (ILF):
The Constituents of the House of Finance     of ideas and opinions with national      • E-Finance Lab (EFL): http://www.
• Department of Money and                    and international participation. 
  Macroeconomics: http://www.                The Institute for Monetary and           • Frankfurt Math Finance Institute               Financial Stability comprises three        (FMFI): http://www.math.uni-
• Department of Finance: http://             endowed chairs and integrates                     three additional chairs from the
  finance/                                    Faculties of Law and of Economics        For further information on the
• The Center for Financial Studies           and Business Administration. The         House of Finance see http://
  (CFS)                                      institute’s director is Professor .
                                             Helmut Siekmann. http://www.
The Center for Financial Studies                          For further information on the
(CFS) conducts independent and                                                        Faculty of Economics and Business
internationally-oriented research          • Goethe Business School (GBS)             Administration, please see http://
on financial markets, financial                The Goethe Business School     
intermediaries and monetary                  aims at forming and furthering
economics, promotes the dialogue             the education of future business         Libraries
between academia and the financial            leaders, enabling them to grow           MMF students have access to a very
community, and provides top level            personally, and to serve their           modern central main library of the
qualification training and executive          company and society at large. The        Faculty of Economics and Business
development. The Center comprises            school is conscious of its mandate       Administration, the “Fachbereichsb
11 researchers and 37 fellows in             to satisfy the highest demands in        ibliothek”, situated in the building
different partner institutions world-        education, technology, performance       of the School of Economics and

Business; an information center            state-of-the-art projection facilities    MMF students, domestic or international,
located on the ground floor of              and internet access, allowing even        who are interested in spending a semester
the House of Finance; and highly           broadcasts of lectures, when needed.      abroad while they are enrolled in MMF,
developed electronic access to all         The computers are connected to            are required to have taken GRE by the
major journals, periodicals, and           the Internet with fiber optic cables.      time they register for the MMF program.
databases in the fields of Economics,       Software applications include
Finance, and other areas of Business       Microsoft Office, Open Office 1.1,          More information for international
Administration. Users will find             Sun JDK, Eviews, SAS, SPSS, STATA,        students is available on the relevant
approximately 160.000 books;               Microsoft Visual Studio 2005,             web site: http://www.wiwi.uni-
active subscriptions to about 400          Microsoft Visio and Microsoft Access.
periodicals, newspapers and journals.
In addition to back editions and           Housing                                   Career center
newspapers, more than 1.000                There is modern housing on campus,        The Career Center of the University
microfilms are available. There are         some in very modern, newly-built          facilitates job search for students,
lots of areas for private and group        residence halls facing the building       graduates and young professionals.
study.                                     of the Faculty of Economics and           Its priority assignment is the
                                           Business. In addition to student          placement of candidates into jobs
The Central Library of the University      housing, students have access to          in companies during their studies
“Universitätsbibliothek Johann             the highly developed rental market        and after having obtained a degree.
Christian Senckenberg” has emerged         in Frankfurt, offering possibilities      Besides obtaining qualified advice
from the former Central Library            for individual or shared rentals for      from specially trained staff for jobs
of Frankfurt, the Central Library          various budgets.                          and internships, students find a
of the Goethe University and the                                                     broad program of advanced training
“Senckenbergische Bibliothek”. With        International Office                       and information about job fairs.
its large book stocks and collection, it   There are two international offices:       The Career Center promotes the
is one of the most important scientific     one at the level of the Faculty of Eco-   collaboration of the University with
libraries in Germany.                      nomics and Business Administration,       its external partners.
                                           and the other at University level.
Computer resources                         These provide help to international       Sports
The House of Finance and the               students but also organize a wide         The Center for Sports (“Zentrum
Faculty of Economics and Business          array of international exchanges          für Hochschulsport”) offers each
Administration buildings are well-         between academic programs.                semester a broad and attractive
equipped with modern computer                                                        program for both students and
technology and provide access              Prospective international students        guests. Besides the sports courses
to computer resources and to the           can receive advice and support in         in many disciplines, the program
internet for students. “PC Pools” are      dealing with problems they may            includes excursions, workshops
available for project research and         have, including assistance to find         and tournaments. Registration
for academic instruction. There are        suitable housing in Frankfurt.            for courses can be made at the
also teleconferencing facilities on        Additionally, the International Office     beginning of a semester in the office
site for use in teaching and research.     provides students planning to go          of the Center for Sports.
All lecture halls are equipped with        abroad with information and advice.

                               Dean of the Faculty of Economics and Business Administration
                               Goethe University Frankfurt
                               Grüneburgplatz 1
                               D-60323 Frankfurt, Germany
                               Hotline: + 49 (0)69 798-7749

Goethe University                         The University has 16 schools in                     bank), the European Central Bank
The university was founded in 1914        total. These are                                     and the German Stock Exchange
through private funding. Thus, the        • Law                                                Group. Together with the Frankfurt
university owes its establishment to      • Business and Economics                             Securities Exchange and the Eurex
the link between dynamic research         • Social Sciences                                    Futures Market, this Group is one
and the conscious commitment of           • Educational Sciences                               of the leading securities and futures
the citizens of Frankfurt to the fun-     • Psychology and Sports Sciences                     exchanges in the world. The city
damentals of international trade and      • Protestant Theology                                offers more than 590.000 jobs for
industry. Today, Goethe University        • Roman Catholic Theology                            workers from Frankfurt and the sur-
is one of the largest public institu-     • Philosophy and History                             rounding area. Its central location,
tions of higher education in Germa-       • Lingustics, Cultural and Civilization              excellent infrastructure with one of
ny. It is under the jurisdiction of the     Studies, Arts                                      the world‘s most important inter-
State of Hessen, and is funded pri-       • Modern Languages                                   national airports, Frankfurt Airport,
marily through the State of Hessen.       • Geosciences and Geography                          the concentration of companies with
Around 600 professors and 2,000           • Mathematics and Computer                           growth potential in various sectors,
other research staff members carry          Science                                            and its international atmosphere pro-
out research here, as well as teach       • Physics                                            pel Frankfurt to one of the top places
a total of 35,000 students, of whom       • Chemistry, Biochemistry and                        in Europe in terms of quality of life.
around 4,000 are international stu-         Pharmacy
dents from more than 100 countries.       • Life Sciences                                      Further Information about MMF
Scholars and scientists at Frankfurt      • Medical Science                                    If you like to get further information
University have been awarded many                                                              about the Master program in Money
prestigious scientific prizes, includ-     The city                                             and Finance, please do not hesitate
ing the Nobel Prize.                      Frankfurt am Main is a financial and                  to contact us via email at mmf@wiwi.
                                          service center of global importance        
                                          and, as the focal point of the dynamic
                                          Rhine-Main economic region, is one                   Information on this catalog is correct as
                                          of the leading locations for compa-                  of January 22, 2009. For updates and
                                          nies in Europe. It is the location of                changes, please visit the MMF web-
                                          300 national and international banks,                site: http://www.wiwi.uni-frankfurt.
                                          the German Central Bank (Bundes-                     de/mmf/ .

                                                           Coordination: Barbara Kleiner · Design: Stählingdesign · Photos: Uwe Dettmar · January 2009

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