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Economics of Finance (ECON90034)

Graduate courseworkPoints: 12.5On Campus (Parkville)

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Year of offer2019
Subject levelGraduate coursework
Subject codeECON90034
Semester 1
Semester 2
FeesSubject EFTSL, Level, Discipline & Census Date

This subject examines important features of financial markets, illustrating how economic analysis can aid understanding of those features. Topics considered may include: payments systems (drawing on network economics); security issuance techniques (drawing on auction theory); credit rationing (drawing on asymmetric economics); financial market regulation (drawing on the theory of regulation); macroeconomic determinants of financial prices; flow of funds analysis and long term influences on saving, investment and financial markets (such as retirement incomes policy); international debt defaults and enforcement and international agencies.

Intended learning outcomes

On successful completion of this subject students should be able to:

  • Apply economic theories to sharemarket and financial market situations;
  • Evaluate macroeconomic policy in relation to current issues;
  • Explain the importance of competition to the sharemarket performance of firms;
  • Interpret the meaning and measurement of economic variables, such as the Gross Domestic Product;
  • Explain the economic forces that determine sharemarket performance;
  • Describe the roles of money and the financial system in the macroeconomy;
  • Critically analyse macroeconomic policies appropriate to the achievement of macroeconomic objectives and to evaluate those policies;
  • Analyse the factors influencing economic growth, exchange rates, and interest rates.

Generic skills

On successful completion of this subject, students should have improved the following generic skills:

  • Evaluation of ideas, views and evidence
  • Synthesis of ideas, views and evidence
  • Critical thinking
  • Application of theory to economic policy and business decision making
  • Accessing economic and other information
  • Summarise and interpretation of information
  • Application of windows software
  • Statistical reasoning
  • Problem solving skills
  • Collaborative learning and teamwork
  • Negotiation and bargaining
  • Written communication
  • Oral communication

Last updated: 20 August 2019