Financial Economics

Catalog description

The last episode of financial crisis and the subsequent policy response provide excellent examples for students to learn about the functioning of financial markets and the importance of monetary policies and banking regulations. The course aims to provide an introduction to the role of money, financial markets, financial institutions and monetary policy in the economy, thus providing a solid foundation for further study or employment in the financial services industry. We consider institutions that either help financial markets work well or that interfere with the e cient performance of these markets. Our development includes a series of applications of principles from finance and economics that explore the connection between financial markets and the economy. The course covers many public policy issues and examines how central banks operate and how monetary policy is conducted. It will have a strong international orientation by examining monetary policy in many countries and possible reforms of the international financial system. For each of the addressed issues, we discuss current events reported in the financial press. Throughout this course, you will learn how to apply economic theories to research questions with proper methods, and will acquire the solid skills to read, comprehend, and develop critical thinking. Also, you will learn how to choose and approach an interesting economic research question by yourself from observed economic phenomena. By the end of the course, you will be able to communicate both orally and in written form your own economic research idea. Prerequisite: None. Fulfillment: Economics elective; Social Science Focus Political Economy 300 level course.