Topics and Methods in Sustainable Macro-Finance Research

Wintersemester 2023/24

Structure and organization

Deadline to inform about participation in the course: After taking part in the first lecture, prospective students who want to join the course should express their interest and motivation by emailing the lecturer before October 30th, 2023.

The course will kick off with an introductory lecture providing an overview of the main research topics and the latest literature in the field. Throughout the subsequent seminar sessions, students will work together in small groups organized by the lecturer. The group work aims to discuss various aspects, including brainstorming a topic for the final seminar paper, how to write and structure a seminar research paper, research methodologies, and the challenges encountered during the analysis phase.

In the final seminar session, enrolled students will present their research questions and progress, followed by group discussions to provide feedback to their fellow participants. This approach is designed to help students enhance their research skills, foster critical thinking, and gain a deeper understanding of the main macro-finance research topics.

The presentation during the last lecture day will be graded and will account for 30% of the final grade.

The term paper is due on March 4th 2024. The evaluation of the term paper will account for 70% of the final grade.

Course Outline

23.10.23: Introduction to course - Lecture 1

30.10.23: Lecture 2; definition of groups; deadline for submitting interest to join the course

06.11.23: Group work on brainstorming topic for the term paper

13.11.23: Individual research on the chosen topic; feedback from lecturer

20.11.23: Individual research on the chosen topic; feedback from lecturer

27.11.23: Individual research on the chosen topic; feedback from lecturer

04.12.23: Presentation of the research plan (motivation, objective/s, plan) to other students + feedback from lecturer

11.12.23: Individual work; feedback from lecturer

18.12.23: Individual work; feedback from lecturer

08.01.24: Individual work; feedback from lecturer

15.01.24: Individual work; feedback from lecturer

22.01.24: Individual work; feedback from lecturer

29.01.24: Presentation of the research in progress + grading from lecturer (30% of final grade)

Learning Outcomes

By the end of the course, students are expected to have acquired a comprehensive understanding of key research areas in sustainable macro-finance. They will possess the essential tools and knowledge necessary to actively participate in and enrich the ongoing discussions surrounding critical issues like climate change, green finance, and the transformation towards a low-carbon economy. This seminar is a pivotal milestone for students aiming to deepen their understanding of sustainable economics and financial matters, highlighting their newfound expertise in these domains.

Specific learning outcomes are as follows:

1. Students will gain a comprehensive understanding of the multi- faceted relationship between sustainability and macro-finance, including the economic consequences of climate change and the importance of sustainable financial practices.
2. Students will acquire the skills necessary to analyze and assess the impact of environmental factors on economic systems, including conducting literature reviews, collecting and analyzing data, and formulating research hypotheses.
3. Students will enhance their communication skills by presenting their research findings to peers and faculty, both orally and in writing, fostering the ability to convey complex economic concepts effectively.
4. Students will develop critical thinking skills to evaluate complex economic problems, consider economic and environmental dimensions, and propose innovative solutions.

Prerequisites

To ensure a successful and enriching experience in this seminar, prospective students should meet certain prerequisites. They must have outstanding English language proficiency, a strong command of macroeconomic skills, and a commitment to completing a semester-long seminar project. A genuine interest in macroeconomic research is another essential prerequisite for excelling in this module.

Potential topics for term papers

A list of potential topics and research questions for the seminar paper includes:

• Identifying challenges faced by central banks and supervisors as they respond to environmental challenges, such as climate change.
• Examining the availability of data on green central banking and financial supervision and identifying any gaps.
• Discussing the current state of green taxonomy, including the ongoing policy and academic discussions surrounding it.
• Providing an overview of climate finance sources and flows, with a focus on both general trends and country-specific perspectives.
• Examining the issue of assets stranding in developing countries, both in general and from a country- specific perspective.
• Analyzing the role of green macroprudential policies in emerging economies
• Investigating potential links between the diffusion of green macroprudential regulation, financial liberalization, and the policies promoted by international financial institutions such as the IMF and WB.
• Examining the relationship between climate change and credit risk, as well as the pros and cons of carbon pricing.
• Analyzing the link between SDG goals and green prudential regulation, with a focus on both case studies and general trends.

The research for the seminar paper can take the form of either a literature review or an empirical analysis.

Grading policy and important dates

The assessment will comprise two phases:

1. A presentation and group discussion in class will account for 30% of the final grade. The presentation will take place on January 29th 2024.
2. A term paper, also known as ”Hausarbeit,” which will account for 70% of the final grade. The seminar paper should be max 15 pages long - including a table of content, tables, figures, references, etc. Guidelines for writing and structuring seminar papers will be provided during the introductory lecture. The term paper is due on March 4th 2024.