Economics of Financial Markets

• Credit value: 15 credits at Level 7
• Convenor: Tinghua Yu
• Assessment: a two-hour examination (80%) and coursework (20%)

The aims of this module are to inform you about key economic ideas from microeconomics, macroeconomics and international economics that are essential to a sound understanding of finance. You will also learn how data can help assess the state of the economy and guide policy responses.

By the end of this module, you should be able to:

• understand how markets work, and their role as an allocation mechanism
• understand how firms interact with the price mechanism and with each other
• understand National Income Accounting
• understand long-term economic growth and its determinants
• understand short-term fluctuations in growth
• understand how monetary and financial policy work
• understand international trade and the working of foreign exchange markets
• understand how real and financial markets interact
• understand how economic and financial crises arise
• assess the role of economics in understanding current and emerging economic issues.