Master’s Program in Money and Finance (MMF) BUSINESS ADMINISTRATION FACULTY OF ECONOMICS AND MASTER House of Finance 2010 Contents Preface 2 Introduction 3 Why MMF? 4 Structure of the Program 5 Course Descriptions 7 Faculty 15 Admission Requirements and Procedures 18 Tuition Fees and Scholarships 19 The Setting 20 Preface The Master’s program in Money and the only city in the world with If you are a promising candidate and Finance (MMF) is an innovative two central banks (the ECB and committed to a successful career, joint venture of the Department the German Bundesbank), it offers we hope that the information in of Money and Macroeconomics unique opportunities for interaction this brochure will encourage you and of the Department of Finance, with practitioners. The program to apply to MMF, take advantage both located in the new House is taught exclusively in English; of what it offers, and contribute to of Finance. The program offers knowledge of German is not required making it a stimulating and effective promising students from all over the for admission to, or completion of program for students and faculty world an intellectually stimulating the program. It has been designed alike. and challenging setting in which to with a view to establishing itself as a prepare for their professional careers leading Master’s program integrating Prof. Michael Haliassos, Ph.D. in central banking, commercial studies in monetary economics, Program Director, banking, insurance and other macroeconomics and finance and a Master’s Program in Money and Finance financial services. By being located major gateway to high-profile jobs in Goethe University Frankfurt in Frankfurt am Main, one of the the banking and financial sector. world‘s leading financial centers Introduction Graduate education in Germany Since August 2008, the Departments States. The program is selective as is being revolutionized. Following of Money and Macroeconomics and well as highly international, with the Bologna agreement, traditional of Finance have joined forces with a maximum planned size of 40 five-year (Diploma) programs major research centers and institutes, students per year. The inaugural are being replaced by three-year such as the Center for Financial 2008 MMF class had 29 students, 22 Bachelor’s programs followed by Studies (CFS) and the Institute for of whom are international students two-year Master’s programs, Monetary and Financial Stability, from 19 different countries. In nationally and internationally as well as with the Goethe Business the second year of operation, the recognized. The Goethe University School and with law faculty working program received more than 420 Faculty of Economics and Business on the interactions between law and applications from 70 countries, and Administration is among the very finance to establish the House of 38 students registered. few in Germany to pioneer the Finance at Goethe University. transition. The House of Finance occupies The Master’s program in Money impressive newly-built premises on Research and teaching in the areas and Finance (MMF) is an innovative the new Westend campus of Goethe of monetary economics, macro- joint venture of the Department of University, right in the center of economics, and finance in Frankfurt Money and Macroeconomics and Frankfurt am Main, next to Gruene- are also being revolutionized by of the Department of Finance in the burg Park and in proximity to the the establishment of the House House of Finance, and it is taught European Central Bank, the German of Finance. Its establishment is entirely in English, the language of Bundesbank, and a vast array of intended to encourage interactions the profession. The Faculty of Eco- banking and financial industry firms. between academic departments, nomics and Business Administration, MMF students attend lectures in research institutes, and practitioners, within which the Department of modern, fully equipped lecture halls as well as development of innovative Money and Macroeconomics and at the House of Finance and at the teaching programs that combine the the Department of Finance operate, newly-build lecture hall center right strengths of its various constituents. is accredited by AACSB in the United opposite the faculty building. 3 Why MMF? MMF is aimed at high-caliber the money supply’, and the role 1. It combines the fields of money, graduates of economics, business, of money in monetary policy is macroeconomics, and finance, and related undergraduate programs being debated on both sides of the providing graduates with a much whose goal is to prepare for Atlantic. Household finances are broader toolkit than that offered professional careers in the banking becoming increasingly complicated. by single-field Master’s programs and financial sector. The program Growing numbers of households in either economics or finance. is designed to utilize the strengths participate in a broad array of assets 2. It is also broader than typical of Goethe faculty and their links and debts, undertaking considerable combined Master’s programs to the wide array of financial risk in their portfolios and having in economics and finance by institutions and practitioners based to provide more for their old age to placing greater emphasis on in Frankfurt am Main, in order to meet shortcomings of ailing social macroeconomic and monetary provide academically sound and security systems. Firms face the policy issues. professionally relevant education. challenges and consequences of the 3. MMF is specifically designed to Its key objective is to put graduates new monetary policy regime and combine academic rigor with in the best position to compete for of globalization in product markets, a focus on topical issues facing highly rewarding jobs. factor markets, and in banking policy makers and financial and financial services. Changing practitioners, and is therefore Practitioners in the banking needs of households and firms best suited for students planning and financial sector are faced, have generated new challenges professional careers in the especially today, with new for the financial sector, in product banking and financial sector. challenges, as they operate in a development and marketing; and in 4. The structure of the program policy environment and they cater provision and regulation of financial combines regular core and to needs of households and firms advice. elective courses with seminars that are changing rapidly. In most and topical courses. Seminars European countries, the conduct The Frankfurt MMF program is provide hands-on experience, of monetary policy is no longer uniquely designed with such new while topical courses are the task of national central banks, challenges in mind. taught by high-level Frankfurt but of a major new player, the practitioners who share their European Central Bank. Monetary experiences and insights with policy does not amount to ‘setting students. 4 Structure of the Program The Master’s program in Money provided below, together with short make effective presentations of and Finance is designed as a four- course descriptions. The lists are specialized topics, as well as how semester program, with the fourth indicative and will be continually to benefit from the knowledge of semester being devoted to research updated to reflect new trends in others. Seminars are typically held and writing of a Master’s thesis. It relevant research and changes outside the university, in locations has five major components: in the composition of the pool of that are conducive to productive instructors. but informal interaction between • Core courses (5 courses) students and faculty (e.g., in • Electives (6 courses) Topical courses are intended University-owned facilities in • Topical courses (4 courses) to provide a close look at how Rieszlern resort, Austria). Each • Seminars (3 seminars) academic principles are applied to student takes two field seminars, • Master’s thesis work carried out by practitioners one coded M and one coded in central and commercial banking, F. Indicative lists of available Core courses are intended to and in the broader financial sector. seminars are provided below, provide the basic tools for the They are typically taught by central together with short descriptions. subsequent courses and the thesis bankers and practitioners in the work. As such, they are required banking and financial sector. While • The thesis seminar provides an for all students. Three courses core and elective courses draw opportunity to final-semester provide the necessary background in on the research expertise of the students working on their thesis macroeconomics, microeconomics, Goethe faculty, topical courses to present their research to faculty and econometrics. Two courses take advantage of our location by and to their student colleagues are devoted to asset pricing and to drawing on our extensive links to and to get useful feedback and corporate finance. Short descriptions financial institutions in Frankfurt guidance on completing an of core courses are provided below. am Main. Students are expected to interesting and relevant piece of take two topical courses with code work. Each student is expected Electives are chosen from two lists M and two with code F. The list of to take part in one thesis seminar of available courses, one coded M topical courses provided below is with students working on related and one coded F. These courses indicative. It is expected that the list topics. Thesis seminars will are intended to provide advanced will be revised more frequently than typically be offered as ‘block specialized knowledge in areas that the list of electives, in our effort to seminars’, during a 1-4 day period. should be chosen by the student focus on current issues and state-of- Like field seminars, they will often with a view to future career plans. the-art 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 possibilities.