Economics of Financial Markets (ECON30024)
Undergraduate level 3Points: 12.5On Campus (Parkville)
For information about the University’s phased return to campus and in-person activity in Winter and Semester 2, please refer to the on-campus subjects page.
Please refer to the LMS for up-to-date subject information, including assessment and participation requirements, for subjects being offered in 2020.
Overview
| Availability | Semester 1 |
|---|---|
| Fees | Look up fees |
The subject is a combination of principle and practice. It provides an overview of the economic principles governing financial markets; then provides insights into some important empirical and practical issues concerning the operation of financial markets; and concludes with a discussion of some practical issues associated with Australian financial markets.
Intended learning outcomes
On successful completion of this subject, students should be able to:
- Explain and analyse the role of capital markets in consumption and investment decision-making under conditions of certainty and uncertainty
- Explain how economic theory applies to financial markets
- Describe how economic theory can provide testable restrictions on financial data
- Analyse the main empirical results that have been established for financial markets
- Critically evaluate economic policy issues associated with financial markets
- Synthesise different theories and ideas, such as alternative models of asset pricing and portfolio allocation
- Apply theories to the real world - how the shape of yield curves can be used to forecast inflation in Australia for example
- Evaluate the relevance of competing theories. For instance, the extent to which alternative analyses can be used to predict the market price of different countries
Generic skills
-
High level of development: written communication; problem solving; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information; evaluation of data and other information.
-
Moderate level of development: oral communication; collaborative learning; team work; statistical reasoning; accessing data and other information from a range of sources; receptiveness to alternative ideas.
-
Some level of development: use of computer software.
Last updated: 20 March 2025
Eligibility and requirements
Prerequisites
All of
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| ECON20001 | Intermediate Macroeconomics | Semester 2 (On Campus - Parkville) |
12.5 |
| ECON20002 | Intermediate Microeconomics |
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
|
12.5 |
AND
One of
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| ECOM20001 | Econometrics 1 |
Semester 2 (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
|
12.5 |
| ECON20003 | Quantitative Methods 2 |
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
Corequisites
None
Non-allowed subjects
None
Recommended background knowledge
Please refer to Prerequisites and Corequisites.
Inherent requirements (core participation requirements)
The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.
Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home
Last updated: 20 March 2025
Assessment
Due to the impact of COVID-19, assessment may differ from that published in the Handbook. Students are reminded to check the subject assessment requirements published in the subject outline on the LMS
| Description | Timing | Percentage |
|---|---|---|
Assignment 1
| Week 5 | 8% |
Mid Semester Examination
| Week 7 | 15% |
Assignment 2
| Week 10 | 12% |
Tutorial Participation | Throughout the semester | 5% |
End of Semester Examination
| During the examination period | 60% |
Last updated: 20 March 2025
Dates & times
- Semester 1
Principal coordinator May Li Mode of delivery On Campus (Parkville) Contact hours Total time commitment 170 hours Teaching period 2 March 2020 to 7 June 2020 Last self-enrol date 13 March 2020 Census date 30 April 2020 Last date to withdraw without fail 5 June 2020 Assessment period ends 3 July 2020 Semester 1 contact information
Time commitment details
170 Hours
Last updated: 20 March 2025
Further information
- Texts
- Related Handbook entries
- Breadth options
This subject is available as breadth in the following courses:
- Bachelor of Arts
- Bachelor of Biomedicine
- Bachelor of Design
- Bachelor of Environments
- Bachelor of Fine Arts (Acting)
- Bachelor of Fine Arts (Animation)
- Bachelor of Fine Arts (Dance)
- Bachelor of Fine Arts (Film and Television)
- Bachelor of Fine Arts (Music Theatre)
- Bachelor of Fine Arts (Screenwriting)
- Bachelor of Fine Arts (Theatre)
- Bachelor of Fine Arts (Visual Art)
- Bachelor of Music
- Bachelor of Science
- Available through the Community Access Program
About the Community Access Program (CAP)
This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.
Please note Single Subject Studies via Community Access Program is not available to student visa holders or applicants
Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.
- Available to Study Abroad and/or Study Exchange Students
Last updated: 20 March 2025