Macroeconomic policy and financial stability methods
22-26 September 2025
Adam Smith Business School, 2 Discovery Place, Glasgow G11 6EY
The University of Glasgow Adam Smith Business School offers a range of applied courses in macroeconomics and econometrics for practitioners who are working in areas such as monetary economics, international economics, financial economics and banking.
Course Overview
In this course we study recent developments and future challenges to national, regional and global financial stability. Through lectures and practical seminars, we cover modern economic theories and learn to apply state-of-the-art quantitative tools with real-life data for policy analysis and forecasting.
The course is taught by leading experts in the field with strong links to central banks, policy-making institutions and international organisations.
The course starts with a historical review of financial systems and the role of governments and central banks in the management of systemic risk. We then study recent financial crises and examine their causes and the effectiveness of subsequent policy responses. We continue with an analysis of commercial banks and how they contribute to the buildup of systemic risk. We then perform an in-depth analysis of equity markets and real estate markets and study their role in the spread of systemic risk. We finish with a discussion of current and future threats to financial stability including nationalism, climate change, no-bank currencies and deglobalisation.
The course has a strong international focus. Socialising opportunities and events are important components to allow sharing experiences and building a lasting network of peers around the world.
Participants
This is an intermediate/advanced level course aimed at:
- economists in central banks, government agencies and international organisations responsible for financial regulation and policy analysis
- economists in private institutions working on forecasting and macroeconomic modelling
- academics and PhD students interested in leading-edge financial stability research, methods and data
- other practitioners working (or aiming to work) on financial stability projects
- MRes/Master’s students with adequate training in Economics, Finance or a related field.
Course structure
This in-person course is delivered in five blocks (hybrid mode for participants not able to travel to Glasgow). Each block includes a lecture discussing theories and methods and a practical seminar covering applications to real-life data and case studies.
Block 1: A brief history of financial crises: The search for monetary and financial stability
In this block we conduct a historical analysis of monetary and macroprudential policy responses to systemic and institutional crises, focusing on Britain.
Through the use of archival records, historical data and modern monetary/financial theory, we study key episodes of monetary and banking disturbances and the resulting evolution of financial regulation. By highlighting the recurring tension between monetary stability and financial stability, the analysis offers a reinterpretation of policy debates and institutional adaptations under crisis conditions.
The practical session covers a case study on how to improve Britain’s current monetary and regulatory framework, with recommendations grounded in both historical precedent and contemporary analysis.
Block 2: Banking and systemic risk
In this section, we examine how the banking sector responds to monetary policy, prudential regulation, and international capital flows, with a focus on the buildup of systemic risk.
We cover key mechanisms linking bank behaviour to macro-financial stability, including how lending decisions, balance sheet adjustments, and risk exposures respond to policy and external shocks.
In the practical session, we introduce hands-on exercises using bank-level data sources such as balance sheets, credit registries, and syndicated loan records. Participants will apply econometric techniques to assess loan dynamics, the effects of regulatory measures, and the impact of climate-related risks on credit markets, including:
- panel data models
- instrumental variables (IVs)
- Regression Discontinuity Design (RDD)
- Local Projections (LPs).
Block 3: Equity markets and systemic risk
In this block, we investigate equity market structures and their roles in propagating systemic risk.
We evaluate how market volatility, financial interconnectedness, and contagion effects can trigger macro-financial instability.
The practical session introduces empirical methods and tools to estimate systemic stress indices, early-warning indicators, and various systemic risk measures, including:
- conditional Value-at-Risk (CoVaR)
- conditional autoregressive value at risk (CAViaR)
- multivariate multi-quantile (MVMQ-CAViaR), among others.
Simulations and illustrations are conducted using real-world data.
Block 4: Real estate markets and systemic risk
In this block, we study the economic fundamentals of real estate markets and the financial instruments employed to manage risk in real estate investment.
We critically discuss the channels through which real estate markets influence macro-financial stability, including liquidity and real estate secured debt.
In the practical section of this block, we learn advanced finance and econometric methods used by banks, governments and investors to perform real estate investment analysis. We access residential and commercial real estate transactional datasets to apply these methods to real world data.
Block 5: Policy responses to financial stability risks: Past, present and future
In this block, we discuss the effectiveness of policy responses to financial crises and explore future challenges to financial stability, including geopolitical risks, economic fragmentation, climate change, digital currencies, and deglobalisation.
The session features a roundtable discussion with leading experts from policy institutions, central banks, and academia, providing insights into policy design, crisis mitigation strategies, and the management of emerging systemic threats.
Participants will directly engage with panellists to discuss practical implications and evolving risks confronting the global financial system.
Fees and funding
- Tuition fee for the course: £2,250.
- Reduced fee for PhD and MRes/Master’s students: £1,350.
Entry requirements
- Fluency in English
- Background in economics, finance or related field
- Familiarity with quantitative methods, data management and a statistical software package
- Relevant professional experience or a postgraduate degree in a relevant field.
Application deadline
- 15 August 2025
- Early applications are encouraged, particularly if travel visas are required.
How to apply
To apply, please send an email to business-executive-education@glasgow.ac.uk with the following documents:
- CV with academic background history
- brief personal statement explaining why you would like to join the course and what are your learning expectations
- a letter confirming your student status if you wish to apply for the reduced student fee.
Faculty
The course is designed and delivered by faculty at the University of Glasgow Adam Smith Business School. The course also features lectures and roundtable discussions with leading experts from policy institutions, central banks and academia.
Contact us: business-executive-education@glasgow.ac.uk