Economics of Financial Markets (ECFS888)

The aim of this unit is to provide a greater understanding of the role and interaction of economic factors with the financial sector. We utilise topical developments and issues as subject matter. This unit explores the structure and growth of the economy, the determination of interest rates, exchange rates and equity prices, the role of finance, the changing importance of banks, institutional investors and security markets, and the economics of regulation with focus on the Global Financial Crisis and to a lesser extent the Asian Crisis. We also look at topical issues in economics and financial markets, for example, the implications of the surge in Government debt, and the implications for markets of an ageing population.

Learning Outcomes:

  1. Understand economic and financial concepts and theories.
  2. Explain current and prospective economic and financial market developments, with reference to economic and financial concepts, theories, evidence, and practice.
  3. Understand the objectives and structure of an economy and its financial system, why this structure has economic and financial impacts and how its components can be used to achieve desired outcomes.
  4. Explain the role and interaction of economic factors (including instruments of economic policy and financial regulation) with the financial sector (including financial market prices and the behaviour of the financial system more generally).
  5. Apply economic and financial concepts and theory, plus an understanding of current issues, to critically evaluate major economic and financial challenges and their implications for financial markets and institutions.

Topics:

  1. Introduction and Overview of the Economy
  2. Macroeconomic and Financial Policies
  3. Finance in the Economy
  4. Economics of Securities Markets
  5. Economics of Financial Regulation

Prerequisite Units:

Note: No previous formal study of economics is required.

Lecturers:

Unit Guides:

  • Economics of Financial Markets - The link will provide a list of guides for this unit. If the desired term/location is not listed, please view the latest one available.

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