Topics in Financial Economics
Postgraduate: Level 7
Monday 13 January 2020
Friday 20 March 2020
26 June 2019
Requisites for this module
MSC L10312 Financial and Business Economics,
MSC L11112 Financial Economics,
MSC L10212 Financial Economics and Econometrics
The past three decades have witnessed unprecedented growth in financial and capital markets and the variety of financial instruments that can be traded in these markets. The objective of this module is to give an overview of these developments by introducing basic elements in modern finance and providing a theoretical and empirical understanding of the functioning of financial markets. The module holds up financial market theory against empirical and experimental evidence on market and agent behaviour in order to critically assess the theory and propose new approaches to understanding financial markets.
The module starts with an overview of the activities of financial institutions. This is followed by a study of the main financial markets: the money market, bond market, equity market and various derivatives markets. In relation to each market the module discusses institutional aspects such as market making and trading on centralised exchanges, and valuation. Once a clear understanding of the markets and their environment is established the module moves on to empirical findings, experimental evidence and recent experience, especially in the context of the 2007-08 financial crisis. Specific topics to be discussed include, but are not limited to, how financial market prices reflect insider information, whether financial markets provide appropriate incentives for traders and other agents such as investment funds to become informed about the assets that are traded, under what conditions we could expect "bubbles" to form, or whether we can use simple financial markets as tools to predict non-financial events such as election outcomes.
The module aims to familiarise students not only with theory, but also with empirical and experimental evidence, broadening the experience of students with a wide set of economic tools and the way they can be used together to obtain insights about underlying economic behaviour.
The module provides students with the following employability skills. Academic skills are enhanced through essay-writing, mathematical problem-solving and the use of ICT equipment. Students are encouraged to carry out research and information gathering for term papers and as background reading. External awareness is promoted through discussion of real world issues and learning about financial institutions and regulation. Opportunities to develop professional working skills, including teamwork and presentation skills, are provided through class discussions.
No additional information available.
One 2 hour lecture and 1 hour class per week.
Feedback for this module will occur through class meetings where we will go over the answers to problem sets and where you will be able to ask questions about your own method of solution; answers that will be posted on the website for the module that will give you written guidance on the appropriate method to approach the problems, assignments, and tests; and office hours where any additional questions can be addressed. You should be sure that you use these methods to understand how to improve your own performance. The term paper will be returned with individualised feedback that addresses what the marking criteria are and how you could improve your own work.
This module does not appear to have a published bibliography.
Assessment items, weightings and deadlines
|Coursework / exam
||120 minutes during Summer (Main Period) (Main)
Module supervisor and teaching staff
Dr Tianxi Wang
For further information, send a message to email@example.com
Dr Roberto Bonilla Trejos
The University of Newcastle-upon-Tyne
Available via Moodle
Of 32 hours, 30 (93.8%) hours available to students:
2 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).
Disclaimer: The University makes every effort to ensure that this information on its Module Directory is accurate and up-to-date. Exceptionally it can
be necessary to make changes, for example to programmes, modules, facilities or fees. Examples of such reasons might include a change of law or regulatory requirements,
industrial action, lack of demand, departure of key personnel, change in government policy, or withdrawal/reduction of funding. Changes to modules may for example consist
of variations to the content and method of delivery or assessment of modules and other services, to discontinue modules and other services and to merge or combine modules.
The University will endeavour to keep such changes to a minimum, and will also keep students informed appropriately by updating our programme specifications and module directory.
The full Procedures, Rules and Regulations of the University governing how it operates are set out in the Charter, Statutes and Ordinances and in the University Regulations, Policy and Procedures.